Will having a mutual fund guarantee me a principal to draw from?

Answer by  Billy25 (104)

In most circumstances, the principal of a mutual fund is not guaranteed. You could look into a principal-protected fund, but most have high fees and offer low returns.

Answer by  happytimes63 (865)

When investing in any mutual fund, there is never a guarantee of making money. Research the history of the fund and see how it is doing, and read the prospectus.

Answer by  Mgarcia (752)

Short answer is no. Mutual funds are the combination of multiple investment types, stocks, bonds, etc. If the funds lose worth then the principal is gone.

Answer by  pambam (892)

It depends on how your mutual fund is invested. There are mutual funds that invest in money market funds that have very low risk. Mutual funds in stocks are riskier.

Answer by  Vladlen (358)

It's hard to say what you mean. But if you mean, if you get dividends by holding mutual fund shares, then it depends on fund policy. Some funds distribute dividends other reinvest them. Check fund prospectus for specific information.