Mutual funds, like all investments, carry some level of risk. However, the level of risk can vary depending on the type of mutual fund you invest in. In the long-term, mutual funds that invest in stocks have the potential to provide a higher return than those that invest in bonds or cash, but they also come with a higher level of risk.
It's important to note that diversifying your investment portfolio with different types of assets can help to manage risk. Additionally, investing in mutual funds for the long-term, such as several years or more, can help to smooth out the ups and downs of the market, and provide a better chance of earning a positive return on your investment.