While there are a number of quite appealing benefits associated with investing in mutual funds, certainly drawbacks exist as well.

To make an informed investment decision, you need to understand not only the hype of positives but also the cons before deciding whether any specific type of investing is right for you.

Below are some of the generally-recognized cons concerning mutual fund investing:

Low returns: While it is possible to secure a comfortable retirement by investing in mutual funds, you won't generally see huge returns. Mutual funds are slow and steady, and generally low risk, but they won't make you copiously wealthy either.

Dubious management: While many mutual funds are well managed, some simply aren't. You need to be your own advocate and objectively evaluate the fund manager before investing your cash since you won't be making your own investment decisions. You want some confidence that you can trust the person who is.

Too much of a good thing: If your mutual fund is doing extremely well, it will (more often than not) be swamped with investors wanting a piece of the action. This means that more people are getting a portion of the profits, negating some of your return in many cases.

The good of the fund: Sometimes, the fund manager will take actions that are great for the fund but which may not be the best for you individually. This is why many people opt for a broker or financial planner who is committed to their individual needs rather than the needs of a large group of people. The result can be much more profitable over time.

Personal control: If you are something of a control fanatic, you may not be comfortable relinquishing control of your cash to an account manager who likely doesn't have your own personal interests at heart.

In a nutshell, an important part of your financial future is truly at the mercy of your account manager - something that gives many people pause for thought.

In the long run, whether you opt for a mutual fund as part of your investment portfolio is really less important than how you diversify your investing strategy overall.

However, it is critical that you be aware of both the pros and cons associated with mutual funds (and other investment options as well) so you neither end up investing in something you don't understand nor miss a golden opportunity.