2. Risk and Reward

In general, as a mutual fund’s risk increases, so does its opportunity for reward. If you are not comfortable with risk, you should stick to funds that carry a lower risk, while understanding that your returns may not be as high as riskier funds. Returns are not guaranteed by the fund managers, nor are they guaranteed by the CDIC (Canadian Deposit Insurance Corporation) or the U.S. equivalent, the FDIC (Federal Deposit Insurance Corporation). You may make money, but you also may lose money.