Alert
Close

Join the Drive to End Hunger! Watch the NASCAR race on Sunday at Kansas Speedway.

Highlights

Open

You and Your Town Contest-You could win an AARP RealPad

AARP Auto Buying Program

Contests and
Sweeps

$10,000 Games Galore Sweepstakes

Sept. 3, 2014 - Oct. 14, 2014
Play AARP Games for a chance to win $10,000!
See official rules. 

Driver Safety

Piggy bank on the road - AARP Driver Safety

Take the new AARP Smart Driver Course!

AARP Books

Visit the Money Section

Enjoy titles on retirement, Social Security, and becoming debt-free.

Jobs You Might Like

most popular
articles

Viewed

Nothing has been viewed

What Are Mutual Funds?

Because mutual funds typically hold a large number of securities, their level of diversification provides them with a lower level of risk than investing in a single stock or bond. However, investing in mutual funds still contains a number of risks that you should consider before investing, including:

  • You could lose money.
  • Your money may lose buying power (inflation risk).
  • You may not achieve your goal. This risk is often overlooked because many investors fail to set goals or set unrealistic goals. For example, if you are investing to pay for a college education, a money market fund might feel safe, but it's unlikely that you'll reach your goal.
  • Your investment may rise and fall in value -- the price of an investment is likely to rise and fall over time. Seasoned investors try to ride out the ups and downs in their investments. That's because over the long term most investment tend to rise in price. Market risk, however, can place you at a significant disadvantage if you need to sell at a time when prices happen to be down.
  • Foreign exchange or currency risk. If you invest overseas, the exchange rate between your home currency and the foreign currency adds an extra layer of risk to your investment. The stock or bond you buy may go up, but the exchange rate may go down so far that it wipes out your gain.

Take Action

All the information presented on AARP.org is for educational and resource purposes only. We suggest that you consult with your financial or tax adviser with regard to your individual situation. Use of the information contained in this Web site is at the sole choice and risk of the reader.

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts

Processing

Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.

The Cheap Life

Jeff Yeager Cheap Life Ultimate Cheapskate AARP YouTube web series save money

Catch the latest episode of The Cheap Life starring Jeff Yeager, AARP's Ultimate Cheapskate. Watch

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

Life insurance: you are covered rain or shine

Exclusive annuities for members from AARP Lifetime Income Program from New York Life.

AARP Credit card from Chase

Members can get cash back rewards on purchases with the AARP® Credit Card from Chase.

Homeowners Insurance
Member Benefits

Join or renew today! AARP members receive exclusive member benefits & affect social change.

Rewards for Good

Your Points Balance:

Learn More

Earn points for completing free online activities designed to enrich your life.

Find more ways to earn points

Redeem your points to save on merchandise, travel, and more.

Find more ways to redeem points