It is possible that the fund is not a capital preservation product and may lose money. Even low-risk funds may lose their principal, but the probability of losing their principal is relatively small.

Among the low risks are bond funds and money funds. Money funds invest in money market instruments, such as deposits, certificates of deposit, short-term bonds and central bank bills. The money fund is the least risky fund, with almost no loss. Bond funds mainly invest in bonds, and the fund risk is determined by the bonds invested, which makes the bond funds less risky.