Can I get guaranteed returns in Mutual Funds?
Hey Jyotsana! If only wishes were horses
There are never any guaranteed returns in mutual funds, as you must’ve heard and read - they are always subject to market risks. Equity mutual funds are subject to the ups and downs in the stock markets. Debt and liquid mutual funds are subject to the ups and downs in the debt market.
In the past equity mutual funds have given robust returns over the 5-7 year period but in the middle, you will probably see negative returns. So I think it’s best is to invest according to your risk level and sleep peacefully. If you are quite uncomfortable with negative returns, stick with debt mutual funds (which give FD like returns and low risk) or even better stick to your Niyo IDFC First Savings account that gives you a 7% interest in a risk free way.
Hope this helps