Indeed, all market investments carry their own risks. Mutual funds are no exception, but the risk level varies depending on the type of mutual fund you choose. There are multiple types of MFs with different levels of risk involved in it. For instance, investing in large-cap mutual funds generally involves lower risk and moderate returns, whereas mid-cap mutual funds come with more risk but offer higher returns. Small-cap mutual funds carry the highest risk, but also provide the potential for the highest returns.
