Fund Basics
Is my principal guaranteed if I invest in a fund?
No. A fund is a performance-based product whose management results pass directly to investors, so you can lose principal.
The FSCMA prohibits asset managers and distributors from compensating investors for losses or guaranteeing profits, and funds are also excluded from deposit insurance protection.
This answer is general financial information as of 2026.10.14, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.
