The short answer is yes, in a number of ways. However, rather than just take it at face value, a closer examination of the two different types of investments will reveal how they differ in the amount of safety investors should expect from each.
For the average investor, mutual funds are an exceptional investment vehicle, as much for their potential to generate solid market returns as for the access to the markets. They provide diversification and professional management which goes a long way to mitigate the risk that would otherwise be too great for the average investor to assume. With the wide variety of mutual funds from which to choose, investors can create a complete portfolio that is balanced and diversified to their specific risk tolerance and investment preferences.