Indian Stock Market Discussions, Share market discussions forum, BSE Stocks forum, NSE Stocks forum MCX MSEI Commodity Equity etc
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Does Investing in Mutual funds is better than share market ?
Does Investing in Mutual funds is better than share market ?
mutual funds are risk free compared to stock market trading or investment

if you are expert, ROI is high in stock market
(08-06-2021, 09:33 PM)karansharma70001 Wrote: Does Investing in Mutual funds is better than share market ?

Commodity derivative market has emerged as a new avenue for investors to create wealth. It is better than segment than Mutual Fund for getting better returns. You can check the Investment Advisory here.
Interest in mutual funds or shares relies upon your insight and skill in stock markets. You can pick mutual funds if you need a gradual road for abundance creation. In any case, if you need more significant yields, and will trade with close consideration regarding stock market essentials, then, at that point, you should pick interest in stocks. Assuming you need to trade stocks, do make sure to pick a confided-in monetary accomplice who can give you a free online Demat Account, a solitary trading stage, and best stock proposals.
First of all, you have to understand that the Share Market is a big concept that allows you to trade in shares. The Share Market is a part of the Stock Market that allows you to buy and sell different types of instruments, namely bonds, mutual funds, derivatives, and shares of companies. If you are an investor with no or at least little experience in the Share Market, then mutual funds will be the best option as there is a lesser risk as compared to the Share Market.

•When you choose a Mutual Fund Scheme, then you will get a fund manager to pick, monitor, and manage your investments.
•There are different types of equity funds to choose from as per your financial goal. You can spread the risk associated with your investments through fund diversification.
•When you invest in a type of mutual fund scheme called ELSS, you can get tax-saving benefits.
Kotak Stock Trader (KST) by Kotak Securities comes with different mutual fund schemes to choose from as per your financial goals.
Mutual funds and the Share Market are two different ways of investment. Both have some similarities, but the nature and assets in both forms of investment are different from each other. Investors buy shares from the Share Market to make profits, but gaining profit is not necessary. There are possibilities of losses when you don’t research and invest blindly in any shares Mutual funds are less riskier than the stock market because the assets allocated in mutual funds mitigate the risk.

You can consider mutual funds over stocks for 4 main reasons. These are —
1. A professional fund manager handles mutual fund investments with knowledge and expertise in stock trading. They make plans for getting good returns on your investments.
2. Unlike stocks, mutual funds dont experience much volatility of rate.
3. There are different types of Mutual Funds available in the Market. . If you see a certain industry is promising, you can buy that industry’ mutual funds.
4. Financial laws - RBI and SEBI implement certain restrictions and guidelines on Asset Management companies.
Mutual funds are the investments that offer investors stability and returns over time.
Shares represent a part of a company’s value. When a company wants its shares to be traded in stock markets, it offers an Initial Public Offering (IPO) whereas a mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks and bonds.

Shares can be an investment option if you're looking to make money quickly. Mutual funds, however, have a longer growth trajectory and can expect good returns. if you've invested for the long-term. There is a professional fund manager who manages the investments in mutual funds whereas, if the client invests in the stock market you can either need to be thorough and well-versed the market nuances or they have to go through a stock trader who is an expert as well as they come with the added benefit of a diverse investment portfolio, apart from that there are restrictions on exiting from specific portfolios. In the case of mutual funds as external resources manage the fund. However, when it comes to stocks, they can buy or sell a stock at any given time, depending on the client's objective.

There is no fixed answer to this question as both mutual funds and the Stock Market have their own pros and cons. A mutual fund is an investment strategy in which the investors give the responsibility of investing their money to some professional fund manager who excels in the knowledge of finances. This money can be invested in stocks, fixed deposits, gold, and other assets depending on the type of mutual fund. Whereas, when an investor invests in the Stock Market, he does it directly by applying his own knowledge, research and experience.

It depends on the investor if he chooses to invest through a mutual fund or in the Stock Market. The mutual fund has a slight benefit over the stock market as it is handled by professional fund managers who have asset management experience. So, if you are a new investor who has just started his/her investment journey then you should go for a mutual fund. It also saves time as you don’t have to research or investigate much for your investment making it more convenient.

The mutual fund also comes with some cons, such as

The management through which the professionals invest your money may give the wrong picture. Professionals mainly seek help from a company’s management to get an idea of their functioning and because the company would want to always enhance their image, it ultimately reflects a wrong picture.
Fund managers may get a little greedy and focus on increasing Assert Under Management (AMU), that is the money that is being invested rather than increasing returns.

Forum Jump:

Users browsing this thread: 1 Guest(s)