When markets are hit by storms, stocks plummet, investors panic and sell off. They try as much as possible to stay away from volatility and run for safe havens like gold or bonds. The risk of investing in mutual funds is determined by the underlying risks of the stocks, bonds, and other investments held by the fund. Analysts say no mutual fund can guarantee returns, and no mutual fund is risk-free. Some stocks have in the process lost value after being hit by corporate scandals which were caused by either short positioning and insider trading. So what do investors do when the stock market is volatile?
Should they invest in risky shares? We chat to Mandla Lamba, Chief Investment Officer at Verityhurst for more.
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