Your mutual fund's risk profile, which you can find described in its prospectus, should align with the level of risk you're willing to take as an investor. One of the best ways to evaluate a fund's relative risk is by looking at volatility. A fund's volatility is measured by the amount its day-to-day returns deviate from its average return.
Investors should consider the investment objectives, risks, charges, and expenses of a mutual fund carefully before investing. A prospectus contains this and other information. A mutual fund prospectus is available through www.scottrade.com or through a Scottrade branch office. The prospectus should be read carefully before investing.