What is the risk involved in investments in mutual funds?

well, It varies and depends on what it invests in.

They are not so lucrative as they are projected. You must learn where these companies are investing and what kind of risk involved in those investments. Do not buy them with short term or immediate gains. You need to keep patience. Government stability, economic situation, changing laws and regulation may make or mar such investments. The real tax benefits as projected are seldom achieved.