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Have you heard this disclaimer in mutual fund advertisements on the television? “Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.” Why do you think this is included?

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This disclaimer is legally mandated to warn investors that mutual funds do not guarantee fixed returns. Their value fluctuates with market conditions, ensuring transparency and urging investors to assess potential risks before committing capital.

Class 9 Social Science Part 2 book Solutions

Chapter 5 Managing Your Personal Finances (Social Science 2) Solutions

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  1. This disclaimer is a regulatory requirement mandated by SEBI to protect retail investors. Unlike bank fixed deposits, mutual funds invest in stock and bond markets where asset prices fluctuate daily. The statement ensures complete transparency, alerting investors that returns are not guaranteed and encouraging them to examine fund objectives, asset allocations and risk profiles before investing.

     

    For more NCERT Solutions of Class 9 Social Science Part 2 Chapter 5 Managing Your Personal Finances Question Answer (2026-27)

    https://www.tiwariacademy.com/ncert-solutions/class-9/social-science/part-2-chapter-5/

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