Index funds are safe investment?
value of index funds also goes down when index i.e. nifty is consolidating / correcting?
what is the potential maximum loss once can incur if he/she bought index mutual funds?
In terms of safety, I think liquid funds are safest than short term debt funds and than comes index funds correct?
Index funds mimic the underlying index, so by buying index funds you will get a good exposure to the entire market segment represented by that particular index. Regarding safety, it is generally considered safer than many other funds, however safety is very relative.
Regarding maximum loss, well there is nothing like a maximum loss, the fund will fluctuate with the index.
How do you define safe?