In direct comparison, on average, mutual funds have outperformed major stocks. Yes, stocks like Bharti Airtel and ICICI Bank definitely performed well, but the weak performance of Reliance, HDFC Bank, and TCS brought down the overall group average significantly. In contrast, top mutual funds have consistently delivered stable and strong returns. This comparison teaches an important lesson: a mistake in stock picking can cost a lot, whereas diversification in mutual funds limits your losses and gives stable returns in the long term.
