Are you actually avoiding risk in investing?

Are you actually avoiding risk in investing. Let’s keep things simple and to the point. People mostly keep away from investing in equity or related instruments to avoid market risk which is ‘temporary’ and ‘uncertain’ and most of the time, over a long period of time, it is highly rewarding.

And in the process of avoiding the above risk, they embrace a ‘certain’ risk called inflation by investing in instruments whose returns might get eaten away by inflation over a period of time.

Moral of the story

Though it might be important for you to invest in fixed-return investment tools owing to the nature of your financial goals, don’t just adhere to fix-return investments; diversify and invest in equity and equity-related instruments as well.

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute professional advice. While full efforts have been made to ensure the accuracy of data and numbers, no responsibility is taken for any errors or omissions. Tax implications on insurance, investments and returns from related products may change due to updates in tax laws. Always consult with your financial advisor or insurance expert before making any investment or insurance decisions. The author is not responsible for any financial losses or damages incurred as a result of relying on the information in this blog.

Read: How to approach equity investing? Mutual Funds or direct stocks?

Invest in Mutual Funds. Start here.

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