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4 questions to help you decide between Mutual Fund vs Stock Investing
What is the fuss?
Retail investors have multiple options to invest into equity. Direct stock investing, and investing via mutual funds are the two most common ways. But which one is better for your? In this post, I answer this ageless debate in a question and answer format. The reason for this format is, there is no one answer which applies to all investors. The QnA format will help you decide which investment method suits you better. Lets get to it.
Q1: Which gives higher returns?
Investors invest to get return on their investment. Getting the highest possible returns is usually the goal. So, between direct stock investing, and mutual fund investing, which gives higher returns?
Direct stock investing gives higher returns.
Stock investment gives higher returns in long run (> 3 years). You choose the buy and sell price of a stock, enabling you to make higher gains. You make use of stock buy/sell features such as Limit order, stop loss, GTT (Good Till Triggered), to buy and sell at the right price. This maximises your returns as…