Direct domestic equity investment or any other kind of market-linked investment instrument is not ideal for risk-averse individuals. Individuals and institutions with time constraints, resource limitations, and inadequate investment knowledge must invest in domestic funds such as mutual funds – because domestic funds incur moderate to low risk while offering consistent returns. Both direct equity investments and domestic private equity funds in India are perfect for investors who are willing to stay invested in the long term. Investors looking forward to accumulating high to moderate returns must invest in direct equity.