What is Risk?
High risk funds have a lot of fluctuations with changing markets. They rise rapidly with growing market and fall hard with falling market.
The risk gets reduced greatly if you invest for 3+ years
Since risk varies from fund to fund we have categorized funds into High, Moderate and Low risk in Fund Easy app.
- High risk funds are the ones which invest into smaller companies showing great potential.
- Moderate risk funds are the ones which invest into larger companies which have already proven themselves and have steady performance.
- Low risk funds mostly invest into govt. bonds and securities. These are considered as safe as Fixed Deposit.