Why do mutual funds have an investment risk disclaimer buy stocks don't in India?

 

BRIEF

As you all see and read at the end of every mutual fund videos tagline ''MUTUAL FUND IS SUBJECT TO MARKET RISK''

Now lets talk about this market risk as you all now that in the stock market in india trading/investment is done over the equity, debt, bonds and other securities. such securities is the one types of replica of company. it's means if something happen to company their corresponding impacting we seen the securities of  such company.

NOW WE HAVE TWO ALTERNATIVE

Whether we take such risk by investing/trading ourself(ALTERNATIVE-1) or by believing over the experts(CA,CFA,NSE/BSE certified professional, SEBI Certified professional etc.) that invest our behalf over by means of mutual fund(ALTERNATIVE-2).

Because as per the SEBI(Securities exchange board of India) Regulation a person can invest on behalf of other person by means raising fund through mutual fund.

CONCLUSION

As we concluded mutual fund is entity that raise fund from public and invest on behalf of company by charging their commission from the asset under management(AUM). All the amount is invested on the behalf of public in stock market and the stock market is itself risky due to their replica effect as explained above.

Note: if there is any further explanation/information needed regarding these post please use comment section feel free to connect