We can refer the long track record of mutual fund and observe that stocks with good fundamentals are one of the best investment avenues.
A mutual fund s portfolio is structured and maintained to match the investment objectives stated in its prospectus.
Mutual funds invest in a set of bonds and stocks depending on type and target investors of the fund. It essentially minimizes the risk because of investment in various assets.
Any fluctuation in one or few assets is usually offset by reverse gains and losses in other set of assets which are part of mutual fund.