Is it safe to invest in Mutual Funds?

If you are looking for a “Safe” place in the mutual fund territory then you are surely mistaken my friend. Mutual fund never comes with a “safe” tag. All you can do is optimize the risk. SIP will be a safe mode of investment for you if you want to bet safe in the mutual fund market. Get this fact straight, markets keeps fluctuating and no one can time it. However, investing in some 5-star schemes and maintaining a diversified portfolio might reduce the risk factor.

Suppose you wake up one morning and find out that the asset management company in which you have been investing money have looted all your money and ran away. Tensed? Well, this is not going to happen ever.

The mutual fund companies are regulated by SEBI (Securities And Exchange Board of India) and AMFI (Association of Mutual Funds in India) which are responsible for providing them license. Your money is safe from the constitutional point of view, rest depends on the storm of market volatility.