In this episode of “Mutual Fund Corner”, Kaustubh Belapurkar, Director of Fund Research at Morningstar Investment Adviser India Private Limited, discussed the risks that all investors face when investing in mutual funds. Belapurkar pointed out that mutual funds are not guaranteed or assured return products, as they invest in market-linked instruments and are susceptible to different types of risks that can affect their price.
He advised people to invest based on their own risk-return goals, investment time horizon, and ability to take risk.
When it comes to asset allocation, Belapurkar stressed the importance of focusing on the right time horizon and investing regularly. He noted that market risk is high when investing in the short term and that short-term risks such as a slowdown in growth, the Russian-Ukrainian war and interest rates can also affect the performance of stocks. mutual fund.
In order to mitigate these market risks, Belapurkar recommended that investors buy funds that match their risk-return goals and investment time horizon.
He said: “The beauty of market risk is that, especially in an asset class, like stocks, if you have the right time horizon and you invest regularly, even if you can’t completely get rid of it , you can certainly lessen the impact of this on your wallet. Although in the short term it can play out, and it has been happening lately, but there is nothing stopping you from investing in a great asset class like stocks even though the market risk will continue to to exist.
For the whole discussion, watch the attached video