There are two important things to keep in mind when investing in a mutual fund regarding the risks and the returns.
Risk – The level of risk and return depends on what the fund invests in. Mutual funds are not guaranteed or insured. So you can lose money investing in mutual funds.
Past performance – The past performance of a mutual fund may tell you about the volatility of the fund’s past return, but it can’t tell you how well it will perform today or in the future.
