InvestorQ : Which mode of investment is good for small investors - Stock or Mutual Fund?
Shobit Khurana made post

Which mode of investment is good for small investors - Stock or Mutual Fund?

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Mitali Bhutta answered.
1 week ago
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It depends on the investor. If you are a beginner who is looking to explore the stock market, it would be better for you to go for mutual funds investment and continue with your stock market research and analysis alongside. It will help you maintain your investment portfolio, minimize the risk associated, and develop a better understanding of the stock market.

However, if you have a beginner’s knowledge of the stock market, you can begin investing in the stock market. The main focus here should be on creating wealth, so you will have to choose stocks that will be beneficial in the long run. Besides, I’m assuming you want to minimize your risk while maintaining better returns so you can invest in stocks of stable industries such as finance, pharma, FMCG, etc.

If you are not sure about the risk or are okay with comparatively lower returns, you can go for mutual funds. The best thing about a mutual fund is that you get a diversified portfolio of securities, and your risk gets minimized. You could invest in mutual funds for as low as Rs 100 and any higher amount. Mutual funds provide returns ranging from 6-20%, depending upon the fund you choose. Returns are always higher for equity funds, so is the risk.
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Abhishek answered.
1 week ago
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It's depend on the person , able to take risks than good to go with stock if not than go with mutual fund

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