Home / Investing / Blog article: What is the difference beetween investment in Mutual funds and Stock Market?

| RSS

What is the difference beetween investment in Mutual funds and Stock Market?

September 4th, 2010 | | Tags: , , | 4 Comments | |

loanapp

Follow Discussion

4 Responses to “What is the difference beetween investment in Mutual funds and Stock Market?”

  1. muncie birder Says:

    By stock market do you mean individual stocks? I have to assume so. With mutual funds you are subject to possible year end distributions of gains which are taxed. With individual stocks you can control the gains yourself. Mutual funds are subject to expenses which individual stocks are not.

    Mutual funds give a broad diversity of investment exposure reducing ones individual risk. Individual stock purchases generally do not unless one has sufficient funds to hold a diverse holding.

    Mutual funds are managed portfolios and some mutual funds have access to stocks than an individual does not have access to such as many stocks in developing market countries.

    Those are the main differences I can think of, but I am sure there are others.

    The advent of index funds has reduced if not eliminated the problem of year end distributions of gains and has reduced considerably the expense ratios.

  2. raysor Says:

    Well I am not sure about this, but normally you have two types of investment. Those that are easily tradeable, like on an (stock) exchange and those that are not, like private companies or funds where your only place to sell is the fund managers and maybe only at certain times of the day. With these funds you are probably paying a high management charge. As I say someone else will clarify if this applies to Mutual Funds. Of course ETF (Exchange Traded Funds) were formulated to get round this. They are similar to Mutual Funds and are traded on various stock exchanges. They have low management fees.See http://www.shareworld.co.uk for global lists and other info.

  3. Cicicaca Says:

    There is several underlying asset for mutual funds (stocks, money market, bond, etc). Mutual funds are managed by a investment manager which have a highly financial skill and knowledge, so u don’t have to worry because there are a person that managed it. So for choosing the good mutual fund, first u must take a look who is the investment manager and the securities company that issued the mutual fund.

    Stock market, u must managed it yourself, make a decison when to sell and when to buy it by yourself, and must controlled it everyday every second by always checking the price and also the economic news…

  4. Chad Says:

    Mutual Funds = Diversified basket of stocks, bonds, or other investment. Reason for this is to lower your overall risk.

    Stocks = Investing in one particular company. More risky but possibly more rewarding.

News results

    Web results

    Image results

     types of mutual funds to choose from depending on your investment ...
    difference between the mutual funds, government funds and index funds ...
    Mutual Fund
     ... funds dave always says to invest in growth stock mutual funds what s
    How Does A Money Market Account Work
    reliance mutual fund" - what is the difference between mutual funds ...
     

    Want to link to this article?
    Copy and paste the code below into your web site (Ctrl+C to copy). It will look like this: What is the difference beetween investment in Mutual funds and Stock Market?