The most crucial point to remember when it comes to investments is that your capital is always at risk. In simple terms, this means that the value of your investment can both rise and fall, especially in the short term, according to the market conditions.
As for the Mutual Funds, each fund typically holds a portfolio containing various different securities at any time, so the risks are spread. The idea is that if one company within the portfolio performs poorly, the overall exposure of your investment to that specific company and your losses are limited.
Mutual Funds are based on investments and capital is always at risk. A projection or profitable past results aren’t reliable indicators of future performance. Returns aren’t guaranteed.