Mutual Fund Investing

There is no straight answer to this question, it depends on the profile of the investor, Mutual funds, or to say equity mutual funds invest in the stock market whose prices keep moving up and down in short term due to external factors, as the prices keep fluctuating, the value of mutual funds keep moving up and down, so in shorter duration, an investor might sometime see negative returns in their portfolio, however over a period of a longer time say 5-7 years, historically equity mutual funds have not produced any losses not only that they have give handsome returns in comparison to other investment options, so if you are someone who invests in equity mutual funds with a time horizon of fewer than 5 years, this could be risky for you. For the shorter duration, there are other Mutual funds options available that are safer.