What are the Risks of Fixed Income Mutual Funds?

[Suba]

Fixed income mutual funds are a type of mutual fund that allocates and manages at least 80% of the funds that have been collected into bonds with a maturity of more than one year. Fixed income mutual funds promise higher returns than money market mutual funds. However, as novice investors, we also need to know the risks involved in fixed income mutual funds. In your opinion, what are the risks?

 

[Augusta]

Fixed income mutual funds are not risk-free, it types of risk, include interest rates risk. When interest rates rise, the price of fixed income securities falls, credit risk and even Liquidity ris. The risk that investors will not be able to buy or sell investments quickly at a price close to the asset's true value