What are the risks associated with mutual funds?
An example of an AI chatbot conversation about mutual fund risks and considerations.
What are the risks associated with mutual funds?
Mutual funds come with several risks, including market risk, credit risk, and interest rate risk. Would you like to know more about any specific type?
Can you explain market risk?
Market risk refers to the potential for losses due to changes in market conditions. This can affect the value of the mutual fund's investments.
What about credit risk?
Credit risk is the possibility that a bond issuer will default on payments. This can impact funds that invest in corporate or government bonds.
How can I mitigate these risks?
You can mitigate risks by diversifying your investments, choosing funds with lower volatility, and regularly reviewing your portfolio.
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