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What is the Difference between a mutual fund and buying a single stock?
Wiki User
∙ 14y ago
By buying a mutual fund, we are buying a number of stocks that are bought/sold by the fund manager.
Let us say you have invested Rs. 10,000/- in a XYZ mutual fund and he has stocks of the below 4 companies in a ratio
A - 15%
B - 30%
C - 25%
D - 30%
Which effectively means you have bought shares of company A worth Rs. 1500, B worth Rs. 3000/- and so on.
While buying stocks, you have a control on what you buy and when you buy and how much you buy but in the case of MFs you do not have this control. Whatever the fund manager buys, comes into your portfolio.
Wiki User
∙ 14y ago
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What is the difference between stocks and mutual funds?
The major difference between stocks and mutual funds is that stocks are an investment in a single, individual company, while mutual funds are made up of many stocks and are typically managed by a broker. Mutual funds are generally considered safer investments than stocks, as they reduce the risk of lost, but also reduce the chance of gain.
How are mutual funds and single stocks the same?
They are not the same.
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What are mutual funds?
Mutual fund is a single pool of money collected from a large number of investors. This money is invested in share, bonds and other securities by AMC. ICICI Prudential Mutual Fund offers mutual fund products that meet the customers needs.
What is a collection of various stocks bonds and other investments all grouped into a single unit called?
mutual fund
What is difference between stock and mutual funds?
The major difference between stocks and mutual funds is that stocks are an investment in a single, individual company, while mutual funds are made up of many stocks and are typically managed by a broker. Mutual funds are generally considered safer investments than stocks, as they reduce the risk of lost, but also reduce the chance of gain.
What is the difference between stocks and mutual funds?
The major difference between stocks and mutual funds is that stocks are an investment in a single, individual company, while mutual funds are made up of many stocks and are typically managed by a broker. Mutual funds are generally considered safer investments than stocks, as they reduce the risk of lost, but also reduce the chance of gain.
What is the difference between funds and fund?
The major difference between stocks and mutual funds is that stocks are an investment in a single, individual company, while mutual funds are made up of many stocks and are typically managed by a broker. Mutual funds are generally considered safer investments than stocks, as they reduce the risk of lost, but also reduce the chance of gain.
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