Difference Between Stock And Mutual Fund
The main dissimilarities or difference between stock and mutual fund can be pointed out as follows:
1. Introduction
Stock: Form of security that provides ownership in a company
Mutual Fund: A collective investment program created by pooling money from various investors
2. Type Of Investment
Stock: Investors directly invest in stocks
Mutual Funds: Investment is made indirectly through fund manager
3. Volatility
Stock: Extremely volatile in nature
Mutual Fund: Less volatile than stock
4. Investing Cost
Stock: Lower cost of investing
Mutual Fund: Higher cost of investing
5. Tax Saving
Stock: No tax saving
Mutual Fund: Yes
6. Time
Stock: It takes more time in investment process
Mutual Funds: It takes less time
7. Time Horizon
Stock: No fixed time horizon because shares can be sold at any time
Mutual Fund: Long period of time (5 to 7 years)
8. Control
Stock: Investor has full control on his/her investment
Mutual Fund: Less control
Also Read:
Also Read:
9. Risk Involved
Stock: It involves high degree of risk
Mutual Fund: It involves low level of risk than stock
10. Managed By
Stock: By an investor himself
Mutual Fund: By a fund manager
Stock Vs Mutual Fund (Comparison Chart)
I hope this post is helpful to understand the difference between stock and mutual fund and to make comparison between them.
Stock Vs Mutual Fund (Comparison Chart)
Basis For Difference
|
Stock
|
Mutual Fund
|
Introduction
|
Type of security that provides proportionate ownership in a company
|
Investment program made up of pooling fund from investors
|
Investment Type
|
Direct
|
Indirect
|
Nature
|
More volatile
|
Less volatile
|
Investing Cost
|
Lower
|
Higher
|
Tax Saving
|
No
|
Yes
|
Procedure
|
Longer
|
Shorter
|
Time Horizon
|
Not fixed
|
Fixed
|
Control
|
Under the control of investor
|
Less control
|
Risk
|
High
|
Less
|
Managed By
|
Investor
|
Fund Manager
|
I hope this post is helpful to understand the difference between stock and mutual fund and to make comparison between them.
