Should youngsters invest in mutual funds?

Investment in any instrument should be according to the Risk Profile of any person. Risk ability of a youngster is usually considered to be high. Since youngsters have large time period left for investments he can afford to take the risk of generating higher returns.

Mutual Funds have different types according to Risk Returns ladder. A youngster should invest for long-term in high-risk funds to generate smart returns. Here the word ‘Long-term’ is important since these funds are expected to have a lot of volatility. Hence the returns are expected to vary during initial years.

 

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