• Fluctuating Returns;
• Loss of Control; and
• Costs.

Like other investments, mutual funds do not offer a guaranteed return. The prices of mutual funds fluctuate depending on the underlying securities that make up each fund. In addition, investors in mutual funds do not have direct control over which stocks are bought and sold and when they are bought and sold. This is especially relevant because of the taxable sales that investors have no control over, which may not be tax efficient for their situations. In addition, because mutual funds utilize professional money managers, there are additional costs associated with running mutual funds. The disadvantage that comes along with these additional costs is that, if the mutual fund does not perform well, the fees could potentially increase the investor's loss of money.