When comparing the investment potential of stocks, bonds, and mutual funds, it's important to consider the risk and return associated with each type of investment.

Stocks: Stocks represent ownership in a company and have the potential for high returns, but they also come with a higher level of risk. For example, investing in a tech company's stock may yield significant returns if the company experiences rapid growth, but there is also a risk of the stock price dropping if the company faces challenges or market conditions change.

Bonds: Bonds are debt securities issued by governments, municipalities, or corporations. They generally offer lower returns compared to stocks but also come with lower risk. For instance, investing in government bonds provides a more stable and predictable income stream, making them a relatively low-risk investment option.

Mutual Funds: Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. This diversification helps spread the risk, making mutual funds a more balanced investment option. For example, an investor can choose a mutual fund that focuses on a specific sector, such as technology or healthcare, to align with their risk tolerance and investment goals.

References: Investopedia - Understanding Risk, Return, and the Benefits of Investing