Is mutual fund investing risky?
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Mutual fund investing involves some level of risk, as the performance of funds depends on market conditions. Equity funds carry higher risk but offer the potential for higher returns, while debt funds are less risky with relatively stable returns. The risk level also depends on the type of fund and the time horizon of the investment. Diversification in mutual funds reduces risk compared to investing in individual stocks. Investors should assess their risk tolerance and financial goals before engaging in mutual fund investing to make informed choices.