A mutual fund is an open-end professionally managed investment fund that pools money from many investors to purchase securities. These investors may be retail or institutional in nature.
Mutual funds are investments that pool your money together with other investors to purchase shares of a collection of stocks, bonds, or other securities, referred to as a portfolio, that might be difficult to recreate on your own. Mutual funds are typically overseen by a portfolio manager.
The risk management process is a framework for the actions that need to be taken.
- Step 1: Identify the Risk
- Step 2: Analyze the Risk
- Step 3: Evaluate or Rank the Risk
- Step 4: Treat the Risk
- Step 5: Monitor and Review the Risk
Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default.
Often it is understood to include only downside risk, meaning the potential for financial loss and uncertainty about its extent.
Financial risk is the possibility of losing money on an investment or business venture. Some more common and distinct financial risks include credit risk, liquidity risk, and operational risk.