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Showing posts from March, 2021

Action plan 5 for Financial Well Being - Understand the Risks in Investments

  Risk means different things to different people in Investments. Why most people don't want to invest in market based products like Equity Mutual Funds or Stocks?One reason might be due to advertisement condition   “Mutual Fund investments are subject to market risks, read the offer document carefully before investing” But unknowingly they investment in unit linked insurance plan(ULIP) which is also a market based product..We will discuss about ULIP story in another series. Coming back to few types of investment risks we face  everyday 1.Market risk - it is applicable for products based on stock market. It means investment returns are impacted by market movements.It is visible day to day basis..Right? 2.Reinvestment Risk- This happens when you are trying to renew your existing FD after maturity and seeing the new rates are less comparing to existing one, which most of the senior citizen's today facing during reducing FD rates compared to 10,5,3,2 years before. 3.Inflation risk