Most investors know that purchasing stocks can be risky; however, a much smaller number of investors understand the potential risks associated with investing in the stock market. Historically only a small number of individuals had stock investments, but this has changed drastically with the growth of retirement funds, particularly 401(k) and 403(b) accounts. This exposes more individuals to risk they may not understand.

How have mutual funds impacted the risk faced by most investors in retirement accounts?

What risks are or are not eliminated with mutual funds?