2. Figure Out Your Risk Tolerance

Whether you are investing in mutual funds or some other kind of investment, you can expect a trade-off between return and risk. Return is what investors can expect from the investment, while the risk is the chance that the return won't be what investors expect. If you want to invest in mutual funds in a calm, confident manner, find the combination of return and risk that is right for you. Otherwise, you may find yourself fearful or frustrated because of your mutual fund investment, which is not a good mind-set for investing success.

Mutual funds risks

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