What are shares?

 Shares are those issued by companies by means of IPO

(Initial Public Offering) to raise money for their expansion
plans or other objectives.
 These can be bought or sold if you have a demat and
trading account.
 After IPO, the company gets listed on the stock exchange.
Thus, the company’s shares are available to the public in
the secondary market.
 You can be a long or short term investor depending on
your objectives.
 When the company grows, the value of its shares too
increases. So, if shares are held for a long term, one get
benefitted by selling it.
What are mutual funds?
 Mutual funds are pooled investments wherein
investors’ money is invested in selective shares or
bonds after careful research by fund managers.
 The returns generated from these investments are
given to investors.
 One can either take the SIP mode or lump sum mode
to invest in the mutual funds.
 Regular monitoring of mutual fund’s performance is
very important.
MUTUAL FUND VS SHARES
MUTUAL FUND
 When you invest in mutual fund, your money is
pooled and then invested in shares, bonds, etc. of
several companies.

SHARES
 That is, there is diversification but this is not possible
if you invest in shares directly.
MUTUAL FUND VS SHARES
Mutual fund
Mutual funds are managed by professionals and all
necessary research is done by them

Shares
whereas if one invests in shares, it is the responsibility
of the individual to do proper research about the
company, price movement, etc.
MUTUAL FUND VS SHARES
Mutual fund
 Mutual funds are sold as units and you are in
no way connected with the growth story of the
company
Shares
whereas when you invest in shares, you become
a shareholder of the company and may get
dividends or profits if the company performs
well.
MUTUAL FUND VS SHARES
Mutual fund
Risk gets mitigated in case of mutual funds as your
money is invested in various companies Investing in
mutual fund is easy
Shares
this does not happen in case if you directly invest in
shares. On the other hand, investing in equity
needs more of your time and research.
MUTUAL FUND VS SHARES
Mutual fund
 When you invest in mutual funds, you have no option
of changing the stocks in your portfolio as it is
completely maintained by the fund managers.
Shares
 While investing in shares, you can exit from a stock
and buy some other stock anytime.
MUTUAL FUND VS SHARES
Mutual fund
 To invest in mutual funds, you don’t
require a demat account
Shares
 whereas to invest in shares, you need a
demat account.
MUTUAL FUND VS SHARES
Mutual fund
 To get better and higher returns, one has to stay
invested in mutual funds for a longer time period.
Shares
 While investing in shares, if you are a trader or a short
term investor, you can get better returns quickly if you
use the right strategies of sell, buy or hold.
MUTUAL FUND VS SHARES
Mutual fund
 Mutual funds have several other chargers like
entry load, exit load, management fees, etc.
Shares
 When you invest or trade in shares, brokerage
charges are applicable.