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Are returns from zero-risk portfolios really risk-free?

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Most low-risk products don’t give positive returns after factoring in inflation and tax In the last one year, the Nifty touched an all-time high of 12,430.50 points, but after covid-19 was declared a pandemic by the Word Health Organization (WHO), it came tumbling down to 7,511.10, losing almost 40%.

However, within a couple of weeks, it again surged to 9,000-plus points, an increase of more than 20% from its low. Given the high volatility in the equity market, even seasoned investors have become cautious.

Many people are rushing to safety and considering investments in low-risk and fixed-income products to build a “zero-risk portfolio".

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