A mutual fund's portfolio is structured and maintained to match the investment.No matter what type of investor you are, there is bound to be a mutual fund that fits your taste.It's important to understand that each mutual fund has different risk and reward profiles.
In general, the higher the potential return, the higher the risk of potential loss. Although some funds are less risky than others, all funds have some level of risk – it's never possible to diversify away all risk – even with so-called money market funds. This is a fact for all investments.
Each mutual fund has a predetermined investment objective that tailors the fund's assets, regions of investments and investment strategies.
And those that seek the risk-free rate (money market funds).
The primary objective of these funds is to provide a steady cash flow​ to investors.
As such, the audience for these funds consists of conservative investors and retirees. Because they produce regular income, tax conscious investors may want to avoid these funds.