What is the Difference between Equity shares and Mutual funds?

Question

Can anyone tell me what is the basic difference between the equity shares and Mutual funds... and from both of them, on investing, we got maximum profit within 1-3 years range.

Answer 1

Mutual funds are a combination of different investments. Each fund has its own rules and style. Some funds own just equity (stocks) while others own just debt (bonds). Mutual funds will give you more diversified investments that individual equity shares.

Depending on how much money you have (at least $5,000,000) you could set-up your own mutual fund, do you own research and put together a diversified portfolio. Or you could invest whatever money yo have into other mutual funds.

Answer 2

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Answer 3

Equity Shares are the share listed in the stock exchange and u can buy or sell it from exchange or stock traders . But stock markets are very much unpredictable . So , if u donot have knowledge of how to work u can loose ur money. Mutual Funds r the schemes under which the money is invested in the Equity Shares but under that u won't be worried about which share to buy or invest but that is taken care by a group of expert people

Answer 4

I don't think it can turn to zero. If mf are investing into some Z category then it might happen as global trust bank share , I think , reached near zero. Otherwise it would never happen. Think about this Mf invest in bluechip -sbi, ril ,gail, idfc, turning to zero. That means economy will become like Greece and no body will give India loan . Actually before they turn to zero we will be begging on street as there will be payment default by GOI and all banks will go bankrupt. Let us see other way round.. The real estate companies are doing fine ( based on news ) but their shares are higly undervalued ( atleast I don't put money in reality sectors ) That is what I think unless someone has better idea.. -regds