Lesson 3 of 5 · Risk, volatility and investor behaviour
Why Does My Mutual Fund Value Go Down?
1 min read · Beginner
Market-linked investments do not move in a straight line. Your mutual fund value may rise or fall as the underlying investments change in value.
Prices can be affected by economic conditions, interest rates, company performance, investor expectations and global events.
What should you do when markets fall?
- Avoid making a rushed decision based only on one bad day.
- Revisit your goal and investment time horizon.
- Check whether your original reason for investing has changed.
- Understand the fund’s risk and whether it remains appropriate for you.
Remember: Long-term investing does not eliminate risk. Staying invested should depend on your goals, financial circumstances and the suitability of the investment—not on a blanket rule that you must never sell.
This lesson is for general education. Mutual fund investments are subject to market risks. Read all scheme related documents carefully before investing. Disclosures