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Generally speaking, the higher the potential return, the lower the potential loss risk. Although some funds are less risky than others, all funds have some level of risk–even with so-called money market funds, it is never possible to diversify all risks. This is a reality for all investments. Every mutual fund has a fixed investment objective that also adapts the resources of the fund to investment regions and investment strategies.
hose that invest in stocks (equity funds) also those that invest in bonds (fixed-income funds), Those that invest in both stocks and bonds (balanced funds), And those that seek the risk-free rate (money market funds) also.
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