Index funds have a very admirable goal, but are not immune to the volatility of the market. There are still risks involved with index funds, that is why unpredicted changes in the market could have great negative impact to an investor's index fund investment.
Investing in mutual funds can be a great way to balance your investment portfolio, especially if you are well informed about the advantages and potential pitfalls.
Mutual funds are comprised of stocks, bonds, short-term money market investments and other securities. Before you invest in a mutual fund, take a few minutes to browse GOBankingRates’ articles and resources on investing.
Here you can learn the basics about mutual funds, how they operate as an investment and what type of mutual fund best suits your needs. Before you invest, you should carefully consider the risks and compare them with the potential for profit gain or loss. Mutual funds are designed for optimal success over a long-term period and not ideal for short-term investments.
GOBankingRates’ financial experts have compiled an extensive library of articles to help you make a successful mutual fund investment.