what are the risks of mutual funds 
depending on the assets they hold mutual funds carry several investment risks including market interest rate and management risk market risk arises from the potential decline in the value of the securities within the fund interest rate risk affects funds holding bonds and other fixed income securities as rising interest rates can lead to a decrease in bond prices management risk is linked to the performance of the fund s management team you are putting your money in their hands and poor investment decisions will negatively impact your returns before investing it s important for investors to carefully review the fund s prospectus and consider their own risk tolerance and investment objectives 