Personal Finance Five things to understand while investing your hard earned money in mutual funds Updated : July 17, 2018 06:19 PM IST One common risk test is to assess your ability to accept a negative return. If you can absorb negative return, the interpretation is that you’re willing to invest in high-risk assets. Most mutual fund schemes have two to three investment options built in. These options are typically growth, dividend pay-out and dividend re-investment. When you invest in an equity mutual fund there is no impact on tax immediately unless there is a deduction to be claimed. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.