Difference between Stock Market and Mutual Funds – Which is a better option

Overview:
Stock Market VS Mutual Funds both are the world most and important investment tool in the financial market. There are millions of new demat accounts are opened every years. Before the investment you must know the basic difference between both Mutual funds and stocks.
From the both instruments you can get your financial goal and create good wealth for your future. Let’s understand the difference in both of them tools.
Stock Market: Stocks are financial instruments that represent a part of a company value, where company gives Investors part ownership in a company. The total value of its Stocks represents the total value of the company. So we can say that the with share you can invest directly in the company via your demat Account.
Mutual Funds: In the other side the mutual funds are also a financial instrument. Funds are the collection of stocks and bonds that are managed by fund managers. And Mutual Funds also invest in money market instruments like participatory notes and treasury bills. We can say that mutual fund is like a huge basket with shares from several companies
Difference between Investments in Share Market VS Mutual Funds
1) Form of investment: Buy Share/Stock is a Direct Investment and Investment with Mutual Funds is an Indirect Investment.
2) Demat Account: To buy any Share you need Demat Account, while for Mutual Funds investment no need of any Demat Account.
3) Time and Research: In the direct stock investment, you need more time and research with more dedication, but in other hand for Mutual funds makes it easier for anyone and everyone with money to take part in investment and no need more time and Research.
5) Investment Type: In the mutual funds you can invest Systematic Investment Plan (SIP) and One Time that is managed by fund manager, where in Stocks there is not fix invest price and you can monitor the prices constantly of the stock.
Read: How to Pick Best Share in Stock Market and Tips to Choose The Right Stocks
6) Investment Control: You are directly responsible for the choice of stocks. You can choose company as per your choice. While in mutual funds there’s predetermined portfolio of stocks. You have no control over the investments.
7) Returns: In Stocks the Long-term returns can be from 20-30% and In the mutual funds the average returns of up to 10-12%.
8) Investor type: Share investment is best suited for people having expertise in stock markets. I the other hand anyone can invest in Mutual funds.
9) Tax Benefits: In the Stock Direct investment can give you tax benefits under Section 80CCG, while mutual funds you can claimed tax benefits under Section 80CCG as well as 80C if it is an Equity-Linked Savings Scheme (ELSS).
10) Risk: Stock Market in is Risky investment and it’s depends on the Subject of Company Sector. In mutual funds there’s less market risks
Conclusion:
Investment in the stock market and mutual funds depends on your knowledge stock markets companies. If you want a less risks with slow and steady wealth mutual funds are best for you. But if you want high Returns and willing to trade with high risk than you must select investment in Shares.