Shares/Stock Mutual Funds Vs. Bonds: Which is Less Risky?

Jasmine

VIP Contributor
When it comes to analyze the risk of investing in Mutual Funds and Bonds, there is no big difference, they have almost the same level of risks. However, when it comes to analyze the profitability, Mutual Funds can be better than Bonds. Mutual fund investment involves entrusting your funds to experts who then invest on your behalf, providing fixed returns over a predetermined term. Conversely, purchasing bonds entails providing funds to a specific entity, be it a company or government, which utilizes the capital for diverse projects or investment initiatives. Similar to mutual funds, bonds offer fixed returns for a set duration. The primary distinction lies in how your funds are managed by the respective entity.
 
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