Mutual funds vs Stocks Performance

Mutual funds vs Stocks Performance

As we see the stock market investment scenario currently situation of COVID19 all the companies stocks are drastically falling due to lockdown situations. And also if you are an investor then you are worried about the market situation and also the performance of mutual funds and stocks.

Mutual funds vs stocks performance based on the current situation of the companies and also depend on the growth timeline of any companies which you are already invested in.

If you are invested in mutual funds then you have to maintain your portfolio you can’t able to remove some stocks out of the portfolio but in stocks directly you can remove some stocks that are not growing in the market then you can remove it from portfolio easily.

As per the above situation mutual funds vs stock performance can’t be measure on the one factors but it also measures with different aspect ratios like market performance, portfolio, dividend income, and also trading strategies.

Mutual funds come in many different flavors. This allows you to focus on a particular type of company, such as small or large companies, as well as specific industries or geographic locations. Whereas stocks performance is always on top than mutual funds due to daily growth but mutual funds take time to shred benefits towards its clients. Also, mutual funds vs stocks performance required different costs or fees to stay connected with markets.  

Mutual Funds vs Stocks Difference

Let’s see which is better Stock Market vs Mutual Funds

Mutual Funds 

● It has a low risk

● Mutual Funds is less volatile

● Managers manage Portfolio

● Investors do not have control

● Individual Stock selection is not possible

● Exit load is Applicable

● Speculation is not possible

● It provides a Tax deduction

● Investors are owners of shares of funds

● Investments are in funds

● Managed by Fund managers

● Trading is done at the end of the day

● The macroeconomic factors are responsible for the performance

● Offers diversification

● The commission is in the form of load


● It has a high risk

● Stock is high volatile

● Individual Portfolio management

● Investors have control

● Individual Stock selection is possible

● Exit load is not applicable

● Speculation is possible

● It does not provide a Tax deduction

● Investors are owners of shares of a Company


First of all, we should know what is portfolio diversification? For diversification of the portfolio, you have to understand the allocation of assets. Diversified Equity fund will collect the money from investors. And then invest this money in the various companies.

Diversification is not in the Stock market. Because in Stocks portfolio is managed by investors. While in mutual funds this portfolio is managed by fund managers. The best thing about mutual funds is the person with a low amount of investment can also get diversification. If we talk about Diversification in Mutual Funds vs Stocks then Stocks does not contain Diversification. In the Mutual Funds vs Stocks, Stock does not contain diversification.

Trading Segments: Equity segment, Derivative segment, Commodities segment, Currencies segment.

Brokerage charges: When a broker takes some charges for buy or sells shares then that is called Broker charges.

STT: STT is a Securities Transaction Tax. The government takes this tax for buying or selling shares.

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