Mutual funds vs Stocks which one is better option to invest?

 MUTUAL FUNDS OR STOCKS BETTER OPTION?

If you don't find a way to make money while you sleep, You will end up working until you die By this quote Warren Buffet wants to explain you That if you are only dependent on your salary Because salary is on hourly or monthly basis So you will need to earn till the end of your life You can never get rich or have enough savings That is why investment is very important . If you want to get rich, You can't depend only on earnings Because earned income is based on daily hourly basis Besides this is the business income And in India, most of the companies don't allow that with their job So you have investment income. You can earn by investing at a right place That is the only way to get rich .

Topics covered:-

1. Where to invest?

2. Which is better between mutual funds and stocks

3. conclusion

Introduction

Now, how to invest at the right place? So basically I am going to address 2 of our important questions.

                                                 

 1. Where to invest money? 

2. which is better: mutual funds or stock market? 

I am going to answer these questions. Let's move on! I have made a very detailed blog  On how to make your investment plan ,It depends upon many factors like your profile, income And many more factors You can not ask someone where and how much to invest Just like a person can not recommend you a shirt Until he knows your size Similarly, if someone is unaware of your goals and problems He can not help you in making any plans I'll highly recommend you to first make your own plan This a very good, detailed blog I've explained everything step by step And have also given a free format I've also shared a blog about top 7 investment options The pros, the cons and risk and returns, Everything is discussed in detail to help you to choose the suitable option in accordance with your plan. 

1. Where to invest?

 Mostly people think to invest in FD or PPF and let it grow What is the problem in that? There are two major problems First is to diversify It doesn't matter how safe the option is But investing all your money at one place is not at all safe Don't put all your eggs in the same basket You should diversify your investments to balance out the risk Second problem is people think there's not much difference between 8-9% and 13-14% But, I'll show you an example where I'll compare returns for 9% and 15% for a period of 5 years .

                                            

When your return is increased How much difference can it make on the same investment You get maximum returns from stock market Basically from the equity You can get equity through mutual funds as well as through shares If you've decided for mutual funds Then I've made a detailed blog on SIP vs one time investment I had a great response on this blog from you .

2. Which is better between mutual funds and stocks.

 people get confused between mutual funds and stock market And some people get very scared of stock market First of all, understand that stock market is not gambling or bet And neither am I encouraging you for day trading If you are a very good trader, then that's up to you But if you are beginner, then look stock market as a business Basically, you invest in a company And become owner of a part of it When it comes to investing in a company It seems logical to invest in a business Now, if you invest in a good company What is a good company? A company which is in less debts, which is growing, has a strong, decisive management And has high demand for the products and services And is highly reputed within customers .There are chances for these companies to grow You have to search for such a company to invest in Have patience in right investment, done at the right time Do not take out money after a little profit Keep it for the long term That's how an investor works Again, we are not talking about day traders We are talking about long term investment Keep in mind that you are investing in a business You need a lot research to narrow down to one company Many reports are required And many things are needed to be learned If you are beginner, you can start from mutual funds Or start with index funds in the share market You can observe and learn in the process And can invest more as you gain confidence People don't have time, knowledge, patience or resources To actually Research But if you're not ready but still want to start investment with mutual funds. Then you can check my other blogs also.

  Conclusion

Start your investment journey in your early 20`s it will help you to become financial independent sooner than those you don`t invest. Above discussed methods are very easy and suitable to start your  investment journey. If you want to take some risk so start with stocks market but keep track of the companies that you invest in and if you don`t want to keep track of your investment on daily basis and also wants to take minimal risk than you should go for mutual funds.