There are always risks in anything you invest in like mutual funds. It really depends on what do the mutual fund invests in. An example mutual funds that invest in international stocks are much more risky if it invest in fixed income.
There is the same amount of risk in mutual funds that there is with investing in individual stocks. A mutual fund is just a portfolio of stocks, so if the stock market as a whole goes down, chances are so will the mutual fund.
It also depends on who is managing the fund. You should always check the past performance of the portfolio manager and compare it with other funds before investing your money.
Mutual funds also carry fees, sometimes heavy, sometimes not so much. If a mutual fund seems to be doing great, check to make sure that its fees won't dampen your returns by too much. What may be a positive return could become a negative return once you subtract the fees.
The best way to eliminate risk is just to educate yourself as much as possible, and do your due diligence.
by Sonali Singh 19 months ago
Which is better. Investing in Shares or investing in Mutual Funds?I want to invest some amount of money either in shares or in mutual funds. Which option would be better?
by ngureco 8 years ago
Which Is Better: To Invest In Stocks or Mutual Funds?
by young inv 10 years ago
Hello everyone , im 18 and am learning to be a carpenter in my second year , I have recently become interested in investing money i have saved into something , i come up with theories at work about why such and such is a great place to invest my money , but before i take a leap , i need to know...
by Shil1978 5 years ago
What kind of mutual fund is the best to invest in?
by Victoria Lynn 3 years ago
What are the best mutual funds to invest in?
by ganeshfin 8 years ago
whether investing in NRE/NRO Fixed diposit is best or to invest in Mutual fund is best for a NRI.
Copyright © 2019 HubPages Inc. and respective owners. Other product and company names shown may be trademarks of their respective owners. HubPages® is a registered Service Mark of HubPages, Inc. HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.
HubPages Inc, a part of Maven Inc.
|HubPages Device ID||This is used to identify particular browsers or devices when the access the service, and is used for security reasons.|
|Login||This is necessary to sign in to the HubPages Service.|
|HubPages Traffic Pixel||This is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.|
|Remarketing Pixels||We may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.|
|Conversion Tracking Pixels||We may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.|