Finance, Forex and Investments

Can mutual funds be said to give guaranteed returns in the long term?

We know that mutual funds returns are not guaranteed on a year on year basis but over the long term, markets tends to grow. so, is it safe to tell people that mutual funds are guaranteed in the long term? P.S. i'm in sales, so if i can say this to prospects. Thanks!

Public Comments

1. The only guaranteed investments in the US are: federally insured bank, S&L, and credit union accounts US Treasuries That's all. Mutual funds carry risk and you COULD lose 100% of your investment. Statistically speaking, the overall stock market returns about 8% per year over the long term. If you are in sales for investment securities, your certification exam and training should have thoroughly covered what you can and cannot say.
2. No, mutual funds aren't guaranteed in any way, over any time frame. Of course, we expect mutual funds to make money over the long run, otherwise we wouldn't invest. But no guarantees.
3. It's simply against the law & immoral. If you have to ask this question it shows you don't have a basic understanding of what investing is about. I wouldn't be surprised if you were working for PrimeAmerica.
4. A guarantee means that someone will underwrite it and that someone will make up for the return if the fund did not produce the return guaranteed. In terms of that, mutual funs are not guaranteed. Are they likely to give you returns in the long run? Yes they are more likely to give you a return in the long run but there is always the possibility of a loss. It's like flipping coins, flip a coin once and there's a 50% chance of getting tails, flip it twice and there's only a 25% chance of getting all tails, flip it ten times and there's only a 0.098% chance of getting all tails but there is still a chance.
5. yes if you pick the right ones, since you're in sales, i guess you have to put pretty words to the truths to make it look even better. but the long term is not about 5-10 years, im talking about 10-15 or even longer be very patient. if the market crashes like 08-09 it will compound back to its original value, but these are just my personal opinions.
6. Low risk and guaranteed are not the same thing. Even if over the long term they do well, they are *not* guaranteed. You'd be a real dirtbag to say they are.
7. NO it can not be said that mutual funds give a long term guarantee. If you are licensed to sell funds or any other security problem IT IS ILLEGAL for you to tell a prospect that any security product provides a guarantee. Telling prospects (or existing customers) that any security fund product provides any guarantee will, and should, cost you your license. If you worked for me and it came back that you told a client, or a prospect, you would be handed you U5 and the U5 would be noted "for cause"
8. I agree with "A Nobody" If you worked for me and it was found you told any one that a security provides any guarantee you would be terminated (with cause) in a New York minute,