They are as risky as Stock Market investments. The only good thing here is the fact that, the fund is managed by experienced professionals, therefore the chances of making a profit are better compared to us investing in stocks directly.
Mutual fund investment is always risky. Read the terms and conditions very well before investment.
A mutual fund is when a company takes money from many investor's and pools it together to invest in stocks, bonds and other assests. Mutual Funds can be risky because they are not insured by the FDIC.
Mutual Fund Products & Investment Advise.
Unit Investment Trust Mutual Fund
The stock answer is, buying individual equities is more risky than buying a mutual fund because a mutual fund contains many equities, hence is "less sensitive to the vagaries of the market." IOW, if there are three hundred different companies represented in one fund, the odds of them all going down is really low. The real answer is, it depends on whether you or the manager of the fund in question is better at picking stocks, and how diversified your portfolio is.
TD Mutual Fund Company has high recommendations on their mutual fund activity. It is one of the largest investment companies in Canada. TD Mutual Fund has a long history of helping investors with a variety of investment portfolios.
Mutual Fund investment are subject to market-risk, please read the offer document carefully before investment
The Fund Manager and the Asset Management Company
Mutual fund is a low risk investment. If you invest in a mutual fund, you owns shares of the mutual fund company who is selling you fund. But you do not actually own any underlying asset of the stocks or securities that mutual fund has invested in even they are using your money to invest.
Systematic Investment Plan
One disadvantage of mutual fund investing is that mutual funds are not tailored to the specific investment needs or tax status of individual shareholders
Usually one or at most two fund managers manage a mutual fund. The most common number is 'One"