Mutual funds are not an asset class but can access to equity and debt.

Many investors believe that mutual funds are an asset. “Mutual funds (MF) investment are subject to market risks. Please read scheme related documents carefully”. The returns from the MF depends upon the market volatility. ie. how flexible or fluctuating the market is. With mutual funds investment you own the equity or debenture, but only for some definite period. You may reinvest, that’s another story altogether but equity ownership to be considered as an asset must be for unforeseeable future because business is carried out for an indefinite period. Thus mutual funds give you access to stock and debt only.

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Published by shreyasshamshrikant

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