Mutual funds allow SIP investments, however, shares do not allow this because share prices fluctuate and cause your investment amount to change.
Investing in mutual funds is managed by a professional fund manager, whereas investing in shares is managed by the investor themselves.
In order to invest in stocks, the investor must conduct his own research; however, with mutual funds, the fund houses handle this task as well. Investors can thus save time by using mutual funds.
You choose the stocks to invest in while investing directly, but you do not have that option while investing in Mutual Funds.
Shares are vulnerable to market risk. The risk is decreased when the money is spread among a variety of assets, as is the case with mutual funds.
Fund houses have a wider audience and more expertise than an ordinary individual who invests in shares alone because they are such significant market participants.
When investing in stocks, your ownership of the corresponding company is limited to shares. In contrast, mutual funds allow you to invest in a variety of assets, including bonds. Therefore, investing in mutual funds offers diversification.
In shares, an investor has to invest in individual shares however, he has the option of purchasing multiple shares of his own choice. In contrast, mutual funds invest the entire amount according to the investors' investing objectives in a diverse range of assets.
Every investor and every investment type are distinct. The investor must decide which features he wants to use and the best investment option based on the financial goals, the timeline for making the investment, and the level of risk tolerance. If you can’t still decide, which option is best for you?
Consult with the best mutual fund advisors at Concept Investwell, an asset management company in Gujarat. Our advisors take a holistic and individualized approach to meet your specific financial needs and goals.