18-02-2022, 01:00 PM
There is no fixed answer to this question as both mutual funds and the Stock Market have their own pros and cons. A mutual fund is an investment strategy in which the investors give the responsibility of investing their money to some professional fund manager who excels in the knowledge of finances. This money can be invested in stocks, fixed deposits, gold, and other assets depending on the type of mutual fund. Whereas, when an investor invests in the Stock Market, he does it directly by applying his own knowledge, research and experience.
It depends on the investor if he chooses to invest through a mutual fund or in the Stock Market. The mutual fund has a slight benefit over the stock market as it is handled by professional fund managers who have asset management experience. So, if you are a new investor who has just started his/her investment journey then you should go for a mutual fund. It also saves time as you don’t have to research or investigate much for your investment making it more convenient.
The mutual fund also comes with some cons, such as
The management through which the professionals invest your money may give the wrong picture. Professionals mainly seek help from a company’s management to get an idea of their functioning and because the company would want to always enhance their image, it ultimately reflects a wrong picture.
Fund managers may get a little greedy and focus on increasing Assert Under Management (AMU), that is the money that is being invested rather than increasing returns.
It depends on the investor if he chooses to invest through a mutual fund or in the Stock Market. The mutual fund has a slight benefit over the stock market as it is handled by professional fund managers who have asset management experience. So, if you are a new investor who has just started his/her investment journey then you should go for a mutual fund. It also saves time as you don’t have to research or investigate much for your investment making it more convenient.
The mutual fund also comes with some cons, such as
The management through which the professionals invest your money may give the wrong picture. Professionals mainly seek help from a company’s management to get an idea of their functioning and because the company would want to always enhance their image, it ultimately reflects a wrong picture.
Fund managers may get a little greedy and focus on increasing Assert Under Management (AMU), that is the money that is being invested rather than increasing returns.