Risks of Mutual Funds: Mutual funds have the same risks as investing in a diverse portfolio of stocks. It is rare for an investor to lose much money in mutual funds, especially in the long term. More likely, someone who invests in mutual funds, particularly actively managed ones, will wish they had invested it somewhere else where it could earn higher returns. In an active fund with high fees, an investor may see a large portion of his income consumed by fees. Many times, the brokerage offering the mutual