The fund's portfolio manager is able to purchase a wider variety of securities than most investors could afford to buy individually. Mutual funds are NOT guaranteed or insured by any bank or government agency. Even if you buy through a bank and the fund carries the bank's name, there is no guarantee. You can lose money. Mutual funds always carry investment risks.
Some types carry more risk than others.
Past performance is not a reliable indicator of future performance, although it does provide information that might be useful to you in selecting a mutual fund investment. Mutual funds can be a good way for people to invest in stocks, bonds, and other securities. Mutual funds are managed by professional money managers. By owning shares in a mutual fund instead of buying individual stocks or bonds directly, your investment risk is spread out. Because your mutual fund buys and sells large amounts of securities at a time, its costs are often lower than what you would pay on your own.