Invest in mutual funds with stocks .. What is fair .. Beneficial .. What is best for you ..!
As the stock market hits new highs day by day, more and more people are interested in investing in it. However, a recent study shows that mutual fund investments are on the rise, especially among the younger generation.
In the meantime, can a Good Yield reader buy shares directly on the stock exchange? Or invest in mutual funds?
Research shows that investments are higher in the mutual fund market than in the stock market. Several important factors have been mentioned.
Profitable? Lose?
When investing in the stock market, there is a risk that the investment will be crippled directly only in specific stocks. The same goes for mutual funds that invest in different industries. In particular, your investment is broken down by sector. So, even if profits in one sector decline, available profits in other sectors will adjust even with losses. Thus, the total investment will be profitable. But this is not gonna happen in the case of stock market. If you see the stock you’ve invested in fall in price, you’re losing money.
What’s wrong with direct investment?
In the case of mutual funds, your investment is divided into the stock market, credit market and gold. Although the stock market is currently hitting new highs, how much more will it rise? What to do next if he suddenly collapses? How much will be reduced? Do not know. So even if it is profitable it will be huge. The same loss would be the worst possible.
What is the best option?
So you have to know some important things to know which one is better. In this sense, the first thing we want to see is if you are a new investor in the market? If you are a new investor and don’t know much about the stock market, then mutual funds are definitely the best choice for you.
You can invest individually
One is that your money will be invested in multiple portfolios. Since there are many types of funds in a mutual fund, you can invest in them through SIP. Several funds can be selected. So instead of freezing your investment in one place, it is less risky to divide it. The benefits will also be average. It’s risky
So investing directly in the stock market is risky. These mutual funds will be advised and invested by a qualified fund advisor. Mutual funds are therefore definitely the best choice for new investors.
Do you have enough time?
Do you have enough time to focus on the stock market? If you have enough capacity to face risks in the market, you can face them. If I can’t, then you are definitely not the right person to invest in the stock market. Options mutual funds are the right choice for you. Are not. If I could face anything, I could see good returns on the stock market. You just need to be more discriminating in helping others. If it’s the same mutual fund, the fund managers will do it.
Do you want a private investment?
When you invest in the stock market, you only invest in stocks. But since mutual funds are divided and invested in different assets, here the mutual fund is the best choice for you.. There is also a tax deduction for ELSS shares in the mutual fund. The stock market does not have this option. In the same stock market, there is no tax deduction but you have to pay some kind of fees like STD, dividend distribution tax, capital gains tax, brokerage fee.
Do you have stock market expertise?
Do you have adequate knowledge of the stock market? Only then will it directly produce higher returns on stock investments. It takes into account listening, consultation, news, etc. of others, but it only becomes beneficial after having fully known a role. In addition, you also need to know about technical patterns. Mutual funds don’t claim anything like this.
What to do
Mutual funds are plans that apply to everyone. It’s a low risk. Suitable for all types of investors. Less financing, less risk, average return, allows you to invest directly. Mutual funds are in all respects the best investment option compared to the entire stock market. Investing without fully understanding the stock market is like missing the morning without knowing the depth.
