While mutual funds in india offer potential rewards, they also come with certain risks. Market risk is inherent in mutual fund investing, as the performance of the fund is influenced by market fluctuations. Additionally, specific types of funds carry their own risks, such as equity funds being susceptible to stock market volatility and debt funds being exposed to interest rate fluctuations and credit risk. Moreover, investors may face liquidity risk if they cannot sell their units at desired prices due to market conditions.
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