Past performance is not an indication of future performance When making

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This is unaffordable to many people. On the other hand, many mutual funds allow people to invest with as little as $100. Track performance: Unlike hedge funds, with mutual funds, you can easily track the performance of your investment. Risks of mutual funds As with all investment products, mutual funds come with their risks: Poor performance of portfolio: When stocks lose, the performance of the mutual fund will lose as well.


Default risk: A mutual fund that invests in corporate bonds can cambodia telegram data suffer when the underlying companies default on their obligations. Currency risk: For mutual funds invested globally, the depreciation of the local currencies could affect the performance. Interest rates risks: For bond mutual funds, an increase in interest rates could lead to losses. When rates rise, the performance of bonds declines as well. The money manager: When the money manager leaves the firm, the performance of the fund could be affected.


Past performance is not an indication of future performance When making a decision on the mutual fund to invest in, you will likely consider the past performance. However, it is important to note that the past performance of a fund does not always mean that future performance will be good. To decide on the fund you want to invest in, you should look at the company offering the fund, the money manager and how long they have been with the fund.