Wednesday, 20 December 2017

Why Investing In Mutual Funds May Be Better Than Stocks !!

People assume that investment through Mutual Funds is always a safer and better option than buying stocks. This is true and applicable to the investors who don’t have enough time and expertise in managing their money. 
Let us understand this in Detail : 

Return on Investments: The first thing which comes to an investor’s mind is the return he is going to make on his investments in Mutual Funds, the same would be less volatile as compared to the direct stock investment. Investing in stocks directly is a much riskier proposition, but at times it can give you way more returns than Mutual Funds and only applies to an investor having the expertise and time to do it.

Cost of Investments: Mutual Funds charge administration fee in the form of an expense ratio annually. However, in a brokerage, you pay for stock trading for every transaction you perform, as you lose and gain as per the stock you Buy or Sell and pay the brokerage for every transaction.

Diversification of portfolio: In Mutual Fund we invest from a very small amount Rs5000 to a large sum of a Crore or More which gives them huge leverage to invest in various stocks.

Intensive research on companies and the overall industry is required before investing in stocks whereas Mutual fund house has professional fund managers and a team of analyst to do all the research before picking the right stocks. Investing in stocks require a lot of time in deciding on which shares to buy whereas it takes lesser time to learn about each mutual fund. Mutual funds offer you to get the TAX Benefit and Saving whereas Stock Investments don’t have any Tax Benefit.

For More Details Visit : LifeLine Insurance & Financial Expert

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