Lux Investing

How much risk is associated with investing in a mutual fund?

Public Comments

1. That all depends on the mutual fund. There is always market risk with any kind of security.
2. That depends on the fund type. The link below would provide a basic overview. Any savings that you may need to access in the short term for emergency needs should be parked in a money market fund. You should spend some time learning about index funds, ETFs and diversification.
3. There is risk in investing in anything, however, mutual funds are less risky than individual stock. They are also meant to hold for the long term. No load funds are best.
4. contrary to popular belief, mutual funds are riskier than individual stocks. there is no way you can possibly understand every company within a mutual fund to the point where you intimately understand everything in their business plan. if you found a choice few companies you truly understand your returns would be much higher and you would have less risk involved. WOW. you guys WOULD f u ck1in give me two thumbs down. thats what happens when their is widespread conventional wisdom that isnt wise. they think they know how the markets work... god i cannot wait until i make the forbes 400 list and shove it down all ur guys' throats. if you don't have the time to invest in individual companies & fully understand them, then yeah, you should go with either mutual funds or index funds.
5. mutual funds are actually more risky then individual stocks. With mutual funds you have less control and can't use any form of stop loss with them. If you looking to get into something to diversify in the market look into EFT's you have more control of your investments.....dont't believe the HYPE of mutual funds, my 401k was all mutual funds and I lost 40% of it when the market dumped! Had I been more intelligent financialy before that I would have made some adjustments but if you paying commisions they will take their money no matter what happens to yours and its actually a lot more then you realize. Do an extensive research of what you will be signing up for or you could lose 40% of your retirement like I did.....good luck! Your actually better off getting educated and handling your own money, you will pay attention more then a "pro/salemen" since you dont have hundreds of account to monitor just yours!!!