But I think level of risk is similar in MF as well, becuase risk is related to underlying instruments, ie the stock. Only plus point is MF's are managed by professional and experts, who track market and stocks closely, so can take a buy or sell decision early, which is not possible for ordinary investor due to lack of skill and time. But we must remember, in MFs, we need to pay a hefty amount to these managers and experts as salary and commission, from earnings of our investments, which other wise could be ours. So people with enough knowledge and time, can invest directly and can develop a well diversified portfolio to reduce risk.
