Stocks Vs Equity Mutual funds

Where should you invest? Stocks or Equity Mutual Funds?

When we talk about investment in the stock market, the majority of investors relate it to equity alone. But there are many options for the investor to invest in stock markets. Among the most favored or rather popular ones for quite some time have been mutual funds. Mutual funds are further of many variants like equity mutual funds, debt mutual funds, and hybrid mutual funds. But for an average investor, it is often difficult to decide which is a better investment among stocks and mutual funds. While making an investment, investors have to look at many options and select the one based on their needs, investment goals, budget, returns, expenses or risks associated with the investment, etc. 

Given below are the meaning and differences between stocks and equity mutual funds that will help the investors make better investment decisions. (more…)

Gold Investments

Different Gold investment options in India

You can invest in gold in various forms be it buying gold in the form of jewelry, coins, or bars in physical form, Gold Exchange Traded Funds (ETF) and the sovereign gold bonds (SGB ) in the paper-form. There is an option of gold mutual funds as well, where they are ‘fund of funds’ which further invest in gold ETFs.

 

6 reasons that stop you from being rich

Gold or Mutual Funds?

As women, we love to show off our jewelry as they define our social status, lifestyle and earning capacity. Weddings, anniversaries or Akshaya Tritiya, we rush to get our favorite ornament made of gold. Why?
We hear our moms and grandmoms say, “Buy Gold, it would help when you are in need of money”. Meaning, traditionally Gold is not just a piece of jewelry but is considered as an investment.

Then why does the business magnate, Warren Buffett, does not invest in Gold?
He says: “It doesn’t do anything but sit there and look at you.”

They say investments in Mutual Funds fetch better returns. Do I choose Mutual Funds or Gold? Which one’s better?
Let me list down the differences between the two, that will help answer the above question and help you to make the right choice.

Investment in GoldInvestment in Mutual Funds
Gold is not affected by market conditions.
Mutual funds are affected by market conditions so there is potential to earn higher returns.
The process of investing gold and managing investments is an individual’s responsibility.
Mutual Funds are handled by Professional Fund Managers who perform research and guide your investments in Mutual Funds.
Fear of theft or loss of purity is more as Gold is a physical asset.
Mutual funds are invested in stocks, bonds, or Gold ETFs, they are electronic or online investments.
Diversification can happen only if one chooses to invest not just in Gold, but in silver, or other mining products.
Mutual funds provide the option of diversification as it allows investment in bonds, cash, or commodities like gold and other precious metals.
Value of Gold is more hence the amount you invest in Gold would naturally be high.
Initial Investment in Mutual Funds can be as small as Rs. 500 
Gold remains to have the same value unless someone buys it at a higher price.Investments in Mutual Funds earn high returns as time passes. Mutual Funds Providing >15% returns.
Gold incurs making charges and wastageMutual Funds have no such charges, in fact, investment in Direct Mutual Funds don’t even have commission charges.

 

FD vs Debt Mutual Funds

In India FDs are one of the most popular choice for investing. But are they the ‘best’ investment option?
Below is a comparison of Fixed deposit vs debt mutual funds which are comparable to FDs on the risk profile.

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