Are mutual funds safe?

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I want to invest about Rs 20,000 per month in mutual funds for 8 and 13 years. I am new to mutual funds. Kindly suggest me the best plans for SIP. Are mutual funds safe? I have heard that investors are suffering losses even after nine years of continuous investment. I want to be a direct buyer and not by any agency.
- Arun Rai

Mutual funds do not guarantee any returns. All mutual funds have some amount of risk. However, the risk varies between different categories. For example, debt mutual funds are relatively less risky. Equity mutual funds have a higher risk element in them. Even within equity mutual funds, some categories are riskier than the others.

If you are new to mutual funds and do not understand much about investing in mutual funds, you must seek the help of a reliable mutual fund advisor near you. You can ask your friends and colleagues for reference. You should gain enough knowledge, experience and confidence before you can think of taking care of your investments on your own. We believe only investors with a very good knowledge about mutual funds and investing should consider investing directly.

You should always choose your mutual funds based on your goals, investment horizon and risk profile. Since you are investing for a long period, you may consider investing in equity mutual funds. However, you should choose mutual funds based on your risk profile.

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