what is more beneficisl to invest in mutual fund or to buy direct stocks. i am very confused. please help me in this matter

Before deciding what investment to make, first, you have to decide how much risk you are willing to put your investment through. As for higher returns, the risk should be a little higher. But: No Experience, No Stock

If you’re a new investor, it is always advisable to start with mutual funds as you get a diversified portfolio, expert decisions and the risk is comparatively lesser. Mutual fund experts have the insight to analyze and interpret financial data to gauge the outlook of a prospective investment. So basically, from picking the stocks to allocating them is handled by the experts. Also, this can give you substantial tax benefits.

What if Stock?

The risk involved in stocks is comparatively higher as stocks are vulnerable to the market conditions and the performance of one stock can’t compensate for others. Also, if the stock is sold within a time span of 1 year, it attracts Capital Gain and hence increased tax liability. Investments in stocks require lots of research, hence lots of time.

But if you really want to explore investing in stock, you can allocate a big portion in mutual funds and a small sum in stocks, this will make a big portion of your investment secured and you will get a chance to understand market ups and downs better.