What is the difference between mutual funds and stocks?

Mutual funds are investments in a portfolio of securities, which can include equity, debt, gold, or a combination of these. Stocks are direct investments in the equity shares of individual companies.

Who manages mutual funds and stocks?

Mutual funds are managed by professional fund managers, who are registered with the Securities and Exchange Board of India (SEBI). Stock investments require an in-depth understanding of financial markets and sector-specific expertise to select the right companies to invest in.

What is the risk associated with mutual funds and stocks?

Mutual funds have a lower level of risk compared to direct stock investing, as professional fund managers manage the portfolio and make informed investment decisions. Direct stock investing involves a higher level of risk as it requires expertise, experience, and investment capital to make informed decisions and properly manage risk.

What are the costs associated with investing in mutual funds and stocks?

Mutual funds charge fees such as sales & marketing / advertising expenses, administrative expenses, transaction costs, investment management fees, registrar fees, custodian fees, audit fees.while stocks attract transaction costs or brokerages when bought or sold through an exchange.

Mutual Funds vs Stocks - A Comprehensive Guide