Stock Market VS Mutual Fund || Truelearning in english

 




Friends, as you all know, when we talk about investing in the stock market, we get confused about whether we should invest in mutual funds or stocks.


Today we will all talk about the difference between mutual funds and stocks.

Along with this, we will also learn about the advantages and disadvantages of stocks and mutual funds.


so let's start

Share Market:- To understand the stock market, we must understand these two words separately.


Stock is also called share and equity which means that the share or participation in the company i.e. 

the ownership of the company is divided into smaller parts.

that gives you some rights in the company


In Simply terms, the more shares you have in a company, the more likely you are to own that company.


Stock Market:- When we pay attention to the word market, we know that it is the place where the buying and selling process takes place.


This means we can say that the group of markets and exchanges where the shares of a publicly listed company are bought and sold are called stock markets.


Mutual Fund: A mutual fund is a fund that is managed by an Asset Management Company (AMC), which collects money from a number of small investors and invests money in securities such as stocks, bonds, and short-term debt.


That is, we can say that the group of markets and exchanges where shares of a publicly listed company are bought and sold is called the stock market.


Let us now try to understand the difference between mutual funds and stocks together.







Advantages and disadvantages of investing in stock:-

Advantages and Disadvantages of Investing in Mutual Funds:-

  1. There are more profitable opportunities in the stock market than in mutual funds.

1)Mutual funds are less risky than investing in direct stocks

  1. You can sell your stock whenever you want which means there is more liquidity here.

2)You can also sell mutual funds whenever you want, but the process of selling mutual fund units takes 3 to 4 days.

  1. We do not have to pay any commission on the purchase and sale of shares.

3) In mutual funds you have to pay a commission, it can be more or less.

  1. In stocks, you have to manage everything yourself

4) The work of stock management in a mutual fund is done by the mutual fund manager.

  1. You need a Demat account to buy and sell shares.

5) You need to approach the AMC and the brokerage firm directly to buy mutual funds

  1. no lock-in period

6) There is a time lock scheme in Mutual Fund.


So after knowing all this we can say that if you do not have knowledge of the stock market then you can go towards mutual funds.


On the other hand, if you want to earn more profit from mutual funds by taking risks, then you can choose stocks.


Hope you liked this blog,

You can comment us your suggestions
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