My point is as both involve equities/debts in the main role, how is it that Equity/Debt is considered as a high returns/high risk venture and Mutual Fund a low risk/ low return venture? I know an Asset Management Company is behind a Mutual Fund scheme, but its presence should actually enhance the return in the sense it is being done through professionals?

So, What is the mechanism behind the two and what is the factor that governs the risk and the return factor in the two of them?

My point is as both involve equities/debts(direct investment) in the main role, how is it that Equity/Debt is considered as a high returns/high risk venture and Mutual Fund a low risk/ low return venture? I know an Asset Management Company is behind a Mutual Fund scheme, but its presence should actually enhance the return in the sense it is being done through professionals?

So, What is the mechanism behind the two and what is the factor that governs the risk and the return factor in the two of them?