For a Investor, there is fundamental difference between Share Market and Mutual Fund?

  • Sharing is a stock of a company and are literally buying a combination of a particular company.
  • And investment funds is a kind of a gumbo of different populations (normally 20 +) made by a company or bank. so they are buying partership in several companies, but at a much smaller scale.
Consider this

In addition to sharing can be more rewarding both more risky. Investment funds are mostly less rewarding, but at the same time, less risky (as the chances of getting 20 + bankruptcy is less than getting a bankrupt company).

Stock Market

It is a market where shares of listed companies are traded (bought and sold) with the help of intermediaries. In this case by buying shares of any company that directly become part of the shareholders or owners of the company / companies. Any change in the prices of the shares of that company have a direct impact on investment and the change in value of your investment is identical to the variation in the prices of shares / stocks in percentage terms. Risk in this market is very high.

Mutual Fund

It is a financial instrument that provides investment opportunities for investors to invest in a group of classes from the investment only to invest in any fund. change in the price of various classes of assets involved do not have an equal impact on the% age value of the investment. It depends on the proportion of the fund's asset class. The risk in mutual funds is lower than the stock market.

0 comentarios:

Post a Comment