There are some risks involved in investing in mutual funds. First, you should understand your risk appetite and invest according to it. You should also read the schemes' related documents to understand the risks and the risk management of the scheme. Mutual funds are not a good investment for everyone, so you should do a thorough research before investing. If you have the time and are comfortable taking risks, investing in mutual funds is an excellent option. You can check out this website to get more info about investing in mutual funds.
Second, you should invest in a regulated fund. Mutual funds are regulated by the Securities and Exchange Board of India (SEBI). This means that they are not a fly-by-night scheme. There is no way you will wake up one day to find that you've lost all your money. Third, mutual fund companies are closely regulated by various agencies, including the Securities and Exchange Board of India (SEBI) and the Association of Mutual Funds in India.
Time is another crucial factor in building an investment. If you need the money now, you won't have the time to wait it out and ride out the market fluctuations. Otherwise, you'll need to pull your money out at a loss. In other words, it's better to invest in a long-term, diversified portfolio with a mutual fund instead of an ETF or stock market investment.