Mutual funds invest in a lot of assets; they invest in equities that are stocks, they invest in debts and that is a safer investment and they also invest in very safe instruments like government bonds and securities. So, it depends entirely on what the investment asset class is.
If the mutual fund were to invest only in stocks then it would be much more risky and if they were to invest in safer instruments like government bonds, it would be extremely safe and risk would be a lot lesser.
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