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Ask Dave

Is It Risky?

Where does the mutual fund rank on the risk scale?

QUESTION: Brent asks if a mutual fund is a high-risk investment.

ANSWER: It is a good investment when you leave the money alone for 5 years or longer. History shows that 97% of the 5-year periods in the stock market have made money, and 100% of the 10-year periods have made money. Look at the long-term track record to find out if your mutual fund is proven to make money.