The worst thing that can possibly happen to a mutual fund investment is that you can lose all the money you invested in it, if something goes catastrophically wrong.
Note that this is not the worst thing that can happen in investing: at least your losses are limited to 100% of what you put into the mutual fund. In some cases, such as short-selling or ...
When you invest Rs. 100 every month, you get in return a (non-integer) number of units, each of which is worth the NAV of the mutual fund at each month of investment. When you redeem all your units in the mutual fund at the end of the 3-year period, the NAV of the mutual fund at the point of redemption is what you get.
Also note, the NAV used to convert ...
Several good answers here with a lot of useful detail and nuance, but none actually give you the simple, no bones about it answer. You ask:
What is the worst thing that can happen with my investment in mutual funds?
You can lose 100% of your investment. That would be your worst case scenerio.
You Can't KNOW How Risky Your Investment Is
As others have pointed out, investing in a mutual fund entails the risk of losing your money, up to and including the full amount you have invested.
But how likely is losing everything?
You can ESTIMATE Your Risk
Fundamentally, when you buy a mutual fund, you are paying someone to buy stocks for you. Stocks are ...
The question is really about risks and profit.
For normal investments (shares, real-estate and the like), you take a risk when investing, and you gain, if the asset produced some profit. The risk is effectively that your investment loses value (independent of the reason), i.e. you night not be able to re-sell it for the same price you bought it for ("...
Gains and losses are "realized" when you actual convert your investment to cash (by selling it). Whatever happened in between when you bought your investment and when you sold it doesn't count. Typically the worst case would be that you lose your investment, as described in other answers, but there are a few more detailed situations (which are ...
Probably the worst thing that can happen is that your mutual fund turns out to be part of a Ponzi scheme, or is otherwise fraudulent. See e.g. Bernie Madoff. But even there, investors have recovered about 80% of the money they put in: https://www.ai-cio.com/news/madoff-victims-recovery-tops-80-losses/
From a comment:
do I lose the principal amount too?
You misunderstand what investing means: when you buy stock shares (directly, or indirectly via a mutual fund) with your money, you buy those shares.
Meaning that, as far as "the market" is concerned, you have no principal left, only shares of stock.
If share prices go up, then bully for you: the ...
The most common way to predict future results is to look at prior results for the same fund. Nothing is guaranteed or course, but there's no other way to accurately predict what could happen.
Prior results will give you a range of expected results and the probability of those results occuring again. Obviously, the longer the history the more accurate the ...
As far as taxes are concerned, your wife made the donation, since her name is on the receipt.
I don't think the source of funds/mode of payment is relevant, as she could have used cash from your wallet.
Mode of Payment
A deduction can be claimed under section 80G only when the contribution is made to specified funds and institutions either via cheque or ...
Yes, PPF and EPF is taxable in US.
other source: Do I have to pay taxes on PPF in USA?
NOTE: Do not trust people om internet. You yourself will be liable for any wrong information and losses due to that.
I can't speak to details in India, but if I were doing this analysis in the US here are some things that I would see as missing:
You are not taking into account how often the property will go unrented.
Plus, you are assuming a constant appreciation rate of 10%, which seems very optimistic. You should run the ...