Correct. You need to make a research about the specific altcoin that you are going to invest into (like development team involved, employees, etc) in order to make the right decision when making your investment. This applies to trading as well, now that if you choose a pump & dump altcoin, you may end up loosing more money than what you will make doing your trades. All investments involve a certain risk, but if you know how to play right then you'll stay safe and minimize your risks of loosing a huge amount of profit.
Additionally, most ICOs are a great way to earn profits especially for early investors since there are ICOs where offer a bonus percentage of coins when making your investment at the given time period. I have benefited from many ICOs like Lisk and Waves, and will continue to lookout for more promising ICOs to invest into. Just my opinion.