Which is better for investments- Stock market or Mutual Funds?

I am little thoughtful when I think of Stock Market and Mutual Fund, that which is better

StockMarket is fully fluctuated one.
If you are long investor then I would suggest Mutualfunds ( Equity ) are best then mutual fund manager will take care of our money.
Don’t put your entire money at once. Place it by SIP method.
check it Valueresearchonline.com for more information on mutual funds…

1 Like

Your question is incomeplete! The answer to this question depends on a lot of factors like

  • Age
  • Risk Profile
  • Investment duration
  • Goals
  • Dependants
  • Expectations etc

On the other hand if you would have asked me how many people search for Sunny Leone - it’s straight forward answer.:stuck_out_tongue:

It depends on your investment strategy and knowledge.
If you are someone who is not familiar with markets, stock selection process and all, choose mutual fund. Let the professionals grow your money. Choose an equity diversified mutual fund to be safe.
Also you can put some 10-20% of the overall capital in equities directly. I would advise you to choose companies only within the nifty 100. Once you gain some experience, you can move on to other indices.

1 Like

Hahaha…:joy::joy: Mutual funds popularity is not much in comparison. :grinning:

The below factors can help you to understand whether stock market investments are better than mutual fund investments:

Expertise and time
Stock market investments need a lot of expertise and time to select the right stocks for achieving one’s financial goals. Mutual funds are exemplary for investors who don’t have the time or expertise for stock market investments, as there is a professional and qualified fund manager who takes care of your investments.

Control
When you make stock market investments, you are in full control of your investments as you can chose the stocks to invest and the time to buy to sell. When you invest in mutual funds, the fund manager chooses the stocks to invest.

Risk
The level of risk is high with stock market investments as compared to mutual funds. Mutual funds allow a high level of diversification with over 25 to 40 stock holdings, thus reducing the level of risk. However, the risk involved with direct equities reduces the longer you stay invested.

Stock market investment and mutual funds are different instruments with the same objective of generating higher returns. However both have their own benefits and limitations.

For investors with higher risk appetite, stock market investments are best suited as they have the potential for higher returns. However when opting for stock market investments, it is highly recommended to use the service of a professional equity advisory firm.

If you wish to know more about wealth creation opportunities in such uncertain times then recently i came across an article written by Research & Ranking on Rising Pandemic & An Uncertain Future. Which definitely worth a read.

The below factors can help you to understand whether stock market investments are better than mutual fund investments:

Expertise and time
Stock market investments need a lot of expertise and time to select the right stocks for achieving one’s financial goals. Mutual funds are exemplary for investors who don’t have the time or expertise for stock market investments, as there is a professional and qualified fund manager who takes care of your investments.

Control
When you make stock market investments, you are in full control of your investments as you can chose the stocks to invest and the time to buy to sell. When you invest in mutual funds, the fund manager chooses the stocks to invest.

Risk
The level of risk is high with stock market investments as compared to mutual funds. Mutual funds allow a high level of diversification with over 25 to 40 stock holdings, thus reducing the level of risk. However, the risk involved with direct equities reduces the longer you stay invested.

Stock market investment and mutual funds are different instruments with the same objective of generating higher returns. However both have their own benefits and limitations.

For investors with higher risk appetite, stock market investments are best suited as they have the potential for higher returns. However when opting for stock market investments, it is highly recommended to use the service of a professional equity advisory firm. Currently I am reading lot of informative content on Research & Ranking blog page. You can click here to visit their knowledge corner.

Stocks and mutual funds offer a few advantages for investors. At the point when you purchase a stock, you own a portion of the partnership. You can bring in cash when investors get profit installments and when you sell the stock.

Mutual Funds versus Stock
Mutual Funds accomplish expansion in two ways. Depending upon the sort of common asset you’re thinking about, it might contain a blend of stocks and bonds. Bonds are a generally more secure speculation than stocks, so blending them into your portfolio decreases risk.

In any event, when a common asset holds 100% stocks, those stocks aren’t across the board organization. On the off chance that a solitary organization gets hit with an embarrassment that makes the stock tank, a common asset financial backer will not be hit as hard as a financial backer that just claims that organization’s stock.

Mutual Funds have lot of regulatory restriction. Even they might see an opportunity, if it does not align with the fund objective and regulatory framework, they will not be able to invest in it.

Stocks: Most retail investors don’t know about investment and the stock movements. You need some professional hand holding. Sometimes a stock price keeps on increasing, and investor gets out early. In some cases, the stock price keeps going down and investor holds on to it till eternity. The allocation for each scrip needs to be done based on your capital which most of the investors don’t do.

If not Mutual Funds, there are other third party apps like smallcase, tejimandi who create portfolio with proper allocation at a minimal charge. These do not have tight regulatory framework and are flexible across market caps, sectors and allocation.

The choice depends on how you want to seek your profits. If you want to hold your investment for a long time then mutual funds are good. If you want to get your profits within a short period, stock markets would be ideal. Both need prior learning and skills. I trade stocks with finvasia. NSE and MCX are the exchanges they support with some great trading tools in line. For mutual funds, I go with HDFC and ICICI mutual funds plans for diversification of funds.