While no investment in the world is risk-free, the mutual funds’ investments plan of SWYOM which is an online mutual fund investment platform are considered a safe investment because of three main reasons:
It is not a flight-by-night scheme, and no one will run away with all your money. They are safe as mutual funds companies are regulated and supervised by the Securities and Exchange Board of India (SEBI) and the Association of Mutual Funds in India (AMFI).
The strategy behind mutual funds is to earn higher returns that are also tax efficient. They do not guarantee capital protection or fixed returns but provide higher returns than traditional investment instruments. They result in greater market exposure and are managed by experienced finance managers. They are highly taxed efficiently as they are taxed in a way that doesn’t touch the returns earned. They are best for long-term investments, but in the short term also reap this tax benefit. The risk can be managed very well as the portfolio is usually diverse, with a mix of equity, bonds, and debts. Each promise different financial goals.