Are the American mutual funds a safe option?

Answer by  Kurt (4579)

American mutual funds are safer than many investments but you have to understand that no investment is risk free. American mutual funds have to report to the SEC and are run by financial professionals.

Answer by  fred73 (39)

It depends on which fund you are investing in. If it is a money market fund there is a high degree of safety however with an aggressive growth fund there will be more risk involved. Mutual funds tend to be safer than stocks because of their diversification.

Answer by  cgroverla (516)

Mutual funds in the USA are regulated investments. All American mutual funds must have a prospectus that outlines their risk, objectives and past performance. However, mutual funds can lose money if the underlying investments lose money. If you are interested in a particular mutual fund, go to the fund family website and download the prospectus.

Answer by  worker29 (69)

US mutual funds are tightly regulated. Seek a fund manager with 10 years experience and has made a profit 7 of the last 10 years. No investment is a safe option if it's not aggressive enough to slightly exceed your investing goals.