Investing in mutual funds or real estate????

Hi friends, I am thinking of investing my money in some mutual funds and was really confused about that. My cousins have been stressing on investing in real estate properties and they say that it is more beneficial than investing in any mutual funds. But when I have a look at some of the instances on properties I find that a bit risky. I need you people to justify on that so I can make my decisions from your suggestions.

There are variety of Mutual funds types available....... and each type has its own risk level... The thumb rule is the longer your time horizon, the more risk you may be able to take.

Determine what your financial goals are.
Are you investing for retirement? Your child's education? Or for current income?
Consider your time frame. Do you need money in three months time or three years? The longer your time horizon, the more risk you may be able to take.
How do you feel about risk? Are you in a position to tolerate the ups and downs of the stock market for the possibility of higher returns? It is necessary to know your own risk tolerance. It can be a guide for choosing the right schemes. Remember, regardless of the potential returns, if you are not comfortable with a particular asset class, you should consider other options.

And in real estate also.... you have to have an idea of what, where and when to buy...
Btw I have invested, in fact traded in properties (builder floor, commercial) within ghaziabad, vaishali area and lookin for Greater Noida (Near, Delhi, India) area.