MUTUAL FUND WITH SEG FUND
Helping You Make Ideal Investment Decisions!
What are mutual funds?
Investing in mutual funds is more popular than ever. It is a great investment option for investors, no matter one is a beginner or experienced one. A group of small investors can take advantage by accessing diversified portfolios of bonds, stock, and other securities. As the performance of mutual funds goes up and down, investing in them is not risk-free. There is no guarantee an investor will not lose money on the invested funds. That is why it is advisable to understand the risks associated with mutual funds so that one can better plan.
Types Of Mutual Fund Risks
Market Risk: As the market prices like foreign exchange rates, interest rates, or commodity prices fluctuate with time, there is a possibility to see a decline in the value of investments.
Credit Risk: It is a risk on debt that arises when a borrower is unable to pay the amount promised as interest.
Interest Rate Risk: The rising interest rates can decline the value of mutual funds. It is advisable not to invest when the interest rates are fluctuating.
Liquidity Risk: Refers to a kind of financial risk that arises when the bank is unable to fulfil the immediate or short-term financial demands.
Currency Risk: When there are unfavourable ups and downs in the exchange rates, the chances are higher one loses the money on mutual funds.
What are segregated funds?
Like a mutual fund, a segregated fund is also a market-based investment, but it comes along with insurance cover. This investment type guarantees 75% to 100% return of premiums when the contract matures, or on the death of the investor. Despite offering guarantees, this investment also carries risk depending upon the type of fund chosen by the investor.
Get Financial Advice Before Investment
When it comes to investing in funds, there are a lot of choices one can face. As each of the products carries distinctive pros and cons, it is crucial to understand the funds in detail with the help of an insurance advisor. An expert offers you advice tailored to your financial goals. Guiding you on different investments, an insurance broker ensures you make the right decision for you.