Risk
Understanding mutual fund risk
Risk is more than the chance of a negative number on a statement. It can include liquidity, concentration, time horizon, product structure and the possibility that an investment does not match the goal.
Reading the scheme documents and understanding the stated objective is a better starting point than relying on rankings or past performance.
A clear plan should also include what would make you review a decision and what would not. That discipline can reduce the temptation to react to every headline.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Illustrations assume a constant return and are not forecasts or guarantees.