Stock or Mutual Fund Which is better? Most of the people don’t know the difference between stock or mutual fund. Let come to know about or difference between stock market or mutual fund.
Many people in our country trade in stock market or buy mutual fund but most of them didn’t aware about them so guys my article are for those people that want to know about stock market or mutual fund.
First of all let us know about stock market or share market
What is Stock Market (Definition of stock market) – A place where listed companies
public companies trade. Primary market is a place where companies invite first public to float initial public offering (IPO) to pick fund of market.
When New securities have been sold in main market then after traded in middle market whereas one trader buy from other investor at market price or whatever price both buyer and seller agree upon. Both Main and secondary market are control by SECURITIES EXCHANGE BOARD OF INDIA (SEBI).
A stock exchange helps traders to buy and sale stock company and other securities.
A share is buy or sell only when it is listed on an exchange. India Main share market exchanges are BOMBAY STOCK EXCHANGE (BSE) or NATIONAL STOCK EXCHANGE (NSE).
Bombay Stock Exchange is the oldest stock exchange of India. It was established in 1875 at Dalal street Mumbai whereas National stock exchange of India limited was established in 1992 at Mumbai.
What is Mutual Fund?(Definition of mutual fund) – A mutual fund is a type of investment that uses money from different types of investor to invest in stock, bond or other type of investment. A fund manager or say folio manager decides how to invest money,and for this he is paid a fee, which come from the money in the fund
There Are difference types of mutual funds –
Fix income fund
Fund of fund
Diversify by investment style
Difference Between Mutual Fund And Stock
A collection of shares which is proprietor by an investor signifying his or her ratio of ownership is known as stock since fund erased by an investment company whose collects money from different investor or invest in basket of bond,equity or other fund is known as mutual fund.
While stock is a form of direct investment while mutual fund is kind of indirect investment.
Stock offers an ownership to an investor in company and in mutual fund offer fractional
ownership in a basket of company.
In stock market trading is done in a day when market is open whereas in mutual fund trading is done only once in a day.
Mutual are less risky in comparison of stock market.
Management and administration is of stock market is owned by investor himself and in mutual fund, fund manager manage and administration.
So in the end this the basic difference between stock market and mutual fund.
I hope you will like my post and gain some knowledge.