Mutual Fund for Risk Averse Individual
Risk-averse individuals prefer investment options that offer stability, capital protection, and predictable returns over high-risk, high-return alternatives. For such investors, mutual funds that focus on low-risk instruments, such as debt mutual funds, liquid funds, and overnight funds, are generally suitable. These funds invest primarily in fixed-income securities like government bonds, treasury bills, commercial papers, and certificates of deposit, which carry relatively lower credit and market risk compared to equity investments.