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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.
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.
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.
They are not the same.
The difference between bonds shares and mutual funds is in their definition. Bond shares refers to the individual shares that an investor owns in a company while mutual fund is the collection of all the stocks and shares in a company.
There is no difference between penny stocks and cent stocks.
Stocks are nothing but shares in a particular company. A Mutual fund is like an organization in which people invest and they buy stocks on behalf of the investors.
Index funds are a type of mutual fund that invests in the stocks of a specific market index, attempting to maintain a value per unit that tracks that index.
mutual fund
A Mutual Fund is nothing but a common pool of money collected from a lot of people which is used by an experienced fund manager who invests the money in the Share market. Not many of us are experienced in investing directly in the Equity market. Mutual funds are a boon to the investor who doesnt have enough knowledge to invest directly in the market but wants to take a risk and gain higher returns from the market. A Mutual Fund may invest in Stocks whereas Stocks or Shares refer to ownership.
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.
Owning mutual fund shares offers some protection against the decline of any single stock in their portfolio because they own so many different stocks. However, a mutual fund offers no protection against a broad stock market decline in which most stocks lose value.