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Are mutual funds better than stocks?

Are mutual funds better than stocks?

Submitted by • November 17, 2020

Mutual funds and stocks are both investment avenues that help generate wealth. To answer this question, it’s important to understand what exactly both these investment types are - and what differentiates them from each other.Mutual funds are investment opportunities wherein a group of people (investors) pools their wealth and invest in a mutual fund scheme. Mutual fund schemes are of many types, but all of them function on a similar principle of pooling in wealth from many investors to create a large investable amount. The mutual fund scheme is run by a fund manager who decides where the fund will invest and is thus responsible for any positive or negative gains the fund generates. This type of investment varies the risk undertaken by the investor and tries to maximize returns and minimize risk.Stock investments are investment opportunities wherein individual investors decide to invest in specific individual companies.

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Voted by Mutualfunds123

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