RISK AND RETURN

RISK AND RETURN

Risk and return are directly related. If there is low risk then there will be low return. If there is high risk, there will be high return.

Sectorial fund = High risk & High return
Equity share = High risk & High return
Mutual fund = High risk & High return*
Gilt fund = Low risk & Low return
Bonds = Low risk & Low return
Balanced fund = Low risk & Low return

* It depends on the fund you have selected.

If there is no risk, there will be no return. Risk can’t be avoided but it can be diversified by using different means.