difference between stock and mutual fund ?

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Here are a few key differences between mutual funds and stocks

You don't necessarily require a Demat account to?invest in mutual funds . Whereas, if you're investing in shares, you'll have to own one.

Shares can be an investment option if you're looking to make money quickly. Mutual funds, however, have a longer growth trajectory and you can expect good returns if you've invested for long-term.

There's a professional fund manager who manages your investments in mutual funds. Whereas, if you are investing in the stock market, you'll either need to be thorough and well-versed with the market nuances or you'll have to go through a stock trader who is an expert.

Mutual funds come with an added benefit of a diverse investment portfolio. Shares or stocks, on the other hand, don't unless you actively practice trading and invest in more than 1 or 2 companies.

Mutual funds carry mitigated risk factor owing to the array of investments, whereas stocks come with a high-risk factor.

There are restrictions on exiting from specific portfolios in case of mutual funds as external resources manage the fund. However, when it comes to stocks, you can buy or sell a stock at any given time, depending on your objective.

Stocks can help reap dividends if the company is doing well. Your growth can be directly attributed to the company's growth. With mutual funds, you invest in different stocks, so your growth is not committed to just one company. It depends on the overall market situation, most of the time.
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