00:00If I give you 10,000 rupees to invest, and there are options in mutual fund or direct stock market investing,
00:14then what do you do?
00:15Do mutual funds can be safe for you?
00:19Do you get more returns in stock market?
00:23If you have this question, then this video is for you.
00:27In a very clear and simple way, I will explain the difference in both of you,
00:32and I will tell you about which investor for which strategy is useful.
00:38Let's first understand what the difference is in mutual fund and direct stock market investment.
00:45In mutual fund, you give your amount to a fund manager.
00:49He invests in some collection of stocks, some themes,
00:54based on what that mutual fund does.
00:57But in stock market, you have to invest yourself based on your understanding.
01:02What price you want to buy, what price you want to sell,
01:05what profit you want to buy, what taxation you want to do,
01:08what you want to figure out yourself.
01:11Now, this is the basic understanding of both of you.
01:15Which are the five metrics that differentiate the mutual fund to the stock market?
01:22First, control.
01:24In mutual fund, there is a whole control of fund manager.
01:28This is the second difference.
01:29The second difference.
01:31The risk.
01:33The second difference is the risk.
01:49The chances are that the risk will be more.
01:55If you can get more knowledge than you, then the chances of the risk will be more.
02:00In mutual fund, most fund managers try to diversify their portfolio.
02:06That's why the risk factors are relatively low.
02:123. Cost
02:14In stock market, because you have to pay your own money,
02:18you have to pay a brokerage fee.
02:20In mutual fund, because a fund manager is managing your money,
02:24you will have to pay fund management fees,
02:27you will also have to pay exit load fees.
02:29If you have pre-mature withdrawals,
02:32usually the cost is more than a mutual fund.
02:384. Knowledge Requirements
02:41This is very obvious,
02:42if your money is managing a fund manager,
02:46then you don't have to know the stock market.
02:50But on the other hand,
02:51if you are investing yourself in the market,
02:54it is very very important
02:56that you have to pay full information about that company,
02:59their financials, their growth,
03:02so that you can take an informed decision.
03:055. Time Commitment
03:08Now, here too, because you have to leave your whole responsibility of investing,
03:13the whole headache to a fund manager,
03:15then there is no time commitment in the mutual fund.
03:18In stock market, because you have to do all the research,
03:21you have to do all the analysis,
03:23you have to understand yourself,
03:25so that the time requirement is very much more than a case,
03:29in which you have to invest in stock market.
03:33Let's go,
03:34now let's understand,
03:35which method is more useful for investors,
03:39if you are an investor,
03:41who can research yourself,
03:43who has time and energy,
03:45and a solid understanding of the stock market.
03:48Having said that,
03:49you can take more risk as an investor,
03:53and you want to beat the overall market,
03:56then you can invest in the stock market.
04:00On the other hand,
04:02if you are just starting your career,
04:05in the whole investment space,
04:07you have no knowledge,
04:08no awareness,
04:09no awareness,
04:10and any business news from market,
04:13that's not the knowledge of it,
04:15then you can leave your whole attention to your fund manager.
04:20And in this case,
04:21mutual funds,
04:22it is a very good way to start your investment journey.
04:27Alright,
04:28we have understood here,
04:30what is the difference between the mutual fund and direct stock market.
04:33I hope you liked the video,
04:35and for more of such financial content,
04:37keep following good returns,
04:39because here is the question of money.
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