Stocks Vs Mutual funds
Stocks Vs Mutual funds
What is Mutual Fund?
A mutual fund is a collection of stocks, bonds, or other securities owned by a group of investors and managed by a professional investment company. For an individual investor to have a diversified portfolio is difficult. But you can approach mutual fund advisor and can invest in shares. Mutual funds have become very popular since they make individual investors invest in equity and debt securities easy.
When investors invest a particular amount of mutual funds, he becomes the unitholder of corresponding units. In turn, mutual funds invest unit holders money in stocks, bonds or other securities that earn interest or dividend. This money is distributed to unitholders.
If the fund gets money by selling some stocks at a higher price the unitholders also are liable to get capital gains. A mutual fund is quite simply a collection of stocks, bonds, or other securities owned by a group of investors and managed by a professional investment company. Thus the mutual funds are not the depositing instrument that has the guarantee of getting a certain amount but it is like any other securities where the investor can have capital gains or loss.
Stocks Vs Mutual funds
