Mutual funds always carry one or the other investment risk depending on the asset allocation of the scheme. Some types carry more risk than others. While the offer document details the risk factors associated with the scheme, background research and inquisitive questioning is required to uncover all potential risks. Past performance is not a reliable indicator of future performance and there is no guarantee that the fund manager will be in a position to repeat the past performance on a consistent basis. It is necessary not to be overawed by the claims of spectacular past performance.
All mutual funds carry costs and loads that go on to reduce effective returns.
An investor needs to confirm all cost inputs before committing his money. There are various newspapers, magazines, journals and web sites that carry all relevant information on mutual funds. Sites such as this, and business newspapers such as The Economic Times carry details and provide extensive coverage of mutual funds. Mutual Funds and their agents are one of the most vital sources of detailed information. Yes, there is a minimum initial and subsequent level of investment stipulated by each mutual fund scheme.