While all investments involve some level of risk, multi-fund solutions can offer a more moderate risk profile than single-fund investments. By diversifying across multiple funds, asset classes, and investment strategies, multi-fund portfolios aim to mitigate the impact of underperformance in any one area. This diversification effect can lead to smoother overall returns and reduced volatility. However, it's important to note that the specific risk profile will depend on the individual funds selected and the overall portfolio construction.