Quite the opposite!
Mutual funds invest not just in shares but also in Government Securities, Commercial Papers, Corporate Bonds, Money Market Instruments, Debt Market Instruments, etc. Market savvy investors would prefer managing their investments themselves and invest in each of these instruments separately.
On the other hand, mutual fund investments are managed by professional fund managers and market analysts who have the knowledge, skills and expertise to take investment decisions. Once you invest in a mutual fund, these experts, for all practical purposes, manage the corpus of the schemes!
Imagine investing directly in the stock market. You would be required to monitor/track various stocks/ sectors and analyze their growth potential. The critical decision to buy and/or sell can be governed by many factors and one mistake can cost you dearly. With mutual funds, you don’t have to worry about monitoring or analyzing individual shares.
Another benefit is diversification. If you look at a diversified equity scheme, then you would notice the companies the scheme invests in. If you were to manually invest in all those companies and track their performance, it would be highly time-consuming, to say the least.