Difference between Mutual Funds & Shares

When you invest in shares, you are directly purchasing a small part of the company/business. But mutual funds, on the other hand, are instruments through which you can invest in the shares of different companies. Besides that, Mutual Funds also allow you to invest in bonds, gold, real estate and other money market instruments.
When you invest in shares, you have to analyse different stocks, compare them and perform all tasks yourself. But Mutual Funds are managed by professional fund managers.
Stocks do not extend the feature of Systematic Investment Plans [SIP] while Mutual funds come with the feature of the SIP.
Only if the stocks allow it, diversification is possible. But Mutual funds offer more opportunities for diversification.


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