As a final word, keep in mind that there are many investment options that are less secure than mutual funds. The single-issue aspect of investing in a bond, stock, real estate, or antiques may make these investments more vulnerable than even some of the riskier equity mutual funds. Key Points to Remember Funds fall into several broad-based categories. Mutual funds never invest at random. Match a fund's investment objectives to your own.
Risk is the potential for losing money.
No investment is risk free. The higher the risk, the higher the potential return.