Stocks vs Mutual Funds - Difference Between Stocks And Mutual Funds | Edelweiss Wealth Management

Stocks vs Mutual Funds - Before we understand which is the most viable option between investing in stocks or mutual funds, it is crucial to know that every investments involves thorough research, deliberation over your risk appetite and alignment with your financial goals. Financial planning and investment is done on the basis of these three factors. Whether you should invest in stocks or mutual funds depends on the type of investor you are. Decide which is better stocks or mutual funds for your financial requirements and start investing today.

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Difference between stocks and mutual funds

1. Stocks

- It represents ownership shares in individual companies. If you buy 50 shares of a particular company stock, this means you actually own a very small percentage of the company. You are entitled to a commensurate share in the company’s profits

- Before investing in company stocks, you may get access to various research reports and market information. However, the final decision of investing in stocks remains with you

- You have to actively manage the stocks and portfolio. You are responsible to make any changes w.r.t account and transaction costs

- Investing in single stocks requires thorough research, thinking and planning to decide how much money to invest in stock

- Though there are market regulators, a company can be a non performer which can affect your portfolio

2. Mutual Funds

- A stock mutual fund, in its most basic form, is a collection of individual stocks. If you buy 50 shares of a stock mutual fund, you might have partial ownership in hundreds of different companies

- Funds are managed by the Fund Manager who is responsible for making the investment decisions for you. These decisions are made on basis of several factors including predetermined objective of the fund

- Mutual funds provide you updates regarding the performance of the funds on regular basis, this is available on demand

- With mutual funds, you can start investing with as low as Rs. 500 which will be invested in the shares of companies

- These are safer as compared to stocks as there are strict guidelines & regulations which needs to be followed by every asset management company to safeguard the unit holder's trust

Please read Disclaimer and Disclosures before investing

[andrewkh]

Would like longer descriptive video on this.

[mab]

Info is good BUT music is loud and annoying