The topic of today’s discussion is that Do you invest in Mutual Funds or the Stock market. Here we discuss six important topics that help you to make a decision about which is the right way to invest.
1. Time
Stock Market:
Time, if you invest in the stock market then you need to give yourself at least two hours a day because you need to know the details of the company whose shares you are buying, what was the company’s previous position, current position, and what may happen in the future. Purchasing shares in that company can be risky for you if you don’t have complete knowledge.
Mutual Fund: In Mutual Funds, experts invest your investment in different places and dedicate some fees for this. They will try to give a well-return by researching about your investment. So you don’t have to give time or knowledge.
2. Amount of profit
Stock Market:
Investing in the Stock Market is generally more profitable. But here the risk is high also. Invest in your own knowledge, experience, and intelligence. Then you gain more profit, but there is also the probability of loss.
Mutual Fund:
In the case of Mutual Funds, investments are made according to the analysis of various experts. Experts try to profit by investing your investment in a better company. Though the probability of profit is low in the Stock Market the risk is also low.
3. Skills
Stock Market:
Investing in the Stock Market requires skill in many things.You have to concept from polity to economy of different countries. Without deep knowledge, your investment may be risky.
Mutual Fund:
In the case of Mutual Funds different experts invest by analysis different things. So the amount of risk is reduced and the amount of profit is decreasing.
4. Cost
Stock Market:
There are no cost for investing in Stock Market, because you are investing by your own analysis.As a result, what will be profit is completely yours.
Mutual Fund:
There are few costs of Mutual Funds because expert invests your money in different companies by analysis. The company deducted some changes from here and the rest is returned to you as profit.
5. Investments Tenure
Stock Market:
If you want to invest for 15-20 years, then you can invest in Stock Market. In long term process Share Market is capable of tolerating the market’s fluctuations and the probability of loss is very low.
Mutual Fund:
On the other hand, if you want to invest for 5-6 years then Mutual Fund is better for you. Experts can invest for a long time which you can’t do alone.
6. Discipline
Stock Market:
You must be discipline for investing in Stock Market.You have to make a plan about When to invest,how much to invest,how to invest.If you can achieve the knowledge and trust about the company ,then Stock Market is the right choice for you.
Mutual Fund:
If you are new investor and don’t have ability of time to analyze desire or ability, then Mutual Fund is the best choice for you.
My Opinion
If you are a new investor in the Stock Market, then invest 30% of the amount you want to invest and the remaining 70% in SIP Mutual Fund, which reduces risk and increases profit.
So before investing, make the right decision by keeping these important points in mind and make a well-intestioning plan.