It’s important to recognize that mutual funds cannot be labelled as universally “risky” or “safe.” The level of risk in a mutual fund depends on its investment objective and the types of securities it holds. Each category of mutual fund is designed with a specific goal in mind—whether it’s capital appreciation, income generation, or a balanced approach—and the risk profile reflects that purpose.

For instance, a fund focused on maximizing capital gains may invest in high-growth, speculative stocks, which inherently carry more risk. In contrast, a fund aiming for steady income through dividends may allocate more towards stable, dividend-paying companies, making it relatively less risky. As a general rule: higher potential returns usually come with higher risk.

However, mutual funds also mitigate some of this risk by leveraging the skills of professional fund managers, who use research-driven strategies and years of experience in portfolio management to optimize fund performance.

As an investor, it’s crucial to remember that avoiding all risk—such as by keeping money idle or in non-earning savings—can lead to value erosion over time due to inflation. Investing in mutual funds offers an opportunity to grow wealth while managing risk through diversification and expert management.

Mutual Fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.