ANALYSIS OF MUTUAL FUNDS RISK FINANCE

ANALYSIS OF MUTUAL FUNDS RISK FINANCE

ADNAN SAEED

(22GSOB2010384)

UNDER THE GUIDANCE OF: MR. NAKUL

Abstract- This inquiry delves into the complexities of mutual fund risk financing and the numerous risks associated with mutual fund investing. Mutual funds, which pool the money of many people to purchase a wide range of assets, are inherently riskier than individual investors. Market, interest rate, credit, and liquidity risks are the core focus of this study, which aims to identify and quantify them. The analysis demonstrates how economic conditions and market volatility affect mutual fund returns by thoroughly evaluating relevant literature and empirical data. It looks at how fund managers might strategically diversify and allocate assets to mitigate these risks. The study also considers risk assessment methods and regulatory frameworks designed to protect investors' interests. Investors can better adapt their decisions to their risk tolerance and financial goals by understanding the risk-return trade-offs. Mutual funds' stability and appeal as investment vehicles can be retained by ongoing monitoring, transparency, and effective risk management approaches. The findings are expected to provide regulators, investors, and fund managers with actionable guidance on how to improve financial market resilience through better mutual fund risk management.

Keywords- mutual fund risk financing, mutual fund investing, market risk, interest rate risk, credit risk, liquidity risk, asset diversification, risk-return trade-offs.