Disadvantages of Mutual Funds

[Suba]

You need to consider several risks/disadvantages before you invest in mutual funds, including:
1. Management costs and operational costs will reduce yield earnings
2. Mutual funds are managed by investment managers so you have no control.
3. There is no guarantee that mutual funds will always be profitable.

 

[timewo]

Mutual funds are sometimes reinvesting the dividend, and in a few cases, will falsely claim that greedy government employees own the investment of a private citizen

 

[nomad]

One of the biggest problems can be embezzlement. The fun manager might run away with your investment. Another problem is mutual funds are also always under market risk

 

[Rubz]

Some of the disadvantages of mutual fund are;
- they are no guarantees of return or principal protection
- mutual fund can lose value if the underlying securities perform poorly - there is lack of control by investors