shares belongs to one company and mutualfunds are
combination of shares of difference companies. risk is
very high in shares and comparitively less in mutual funds
Share is the %age of interest of a investor in a company. An
investor Buys or Sells a companies share according to his
risk taking capacity & how much profit he needs. The
decision is purely his.
A mutual fund is the money invested in a proper way to
reduct the risk & to gain more profit. generally the mutual
fund investment organizations have qualified funds manager
which have large knowledge about the risk & return in an
investment. hence they manages the money of the client in
their process. generally when an investor buys a mutual
fund, He has to pay the NAV of the MF. NAV- net asset value
is calculated by the total value of asset where the money is
invested. at the exit time an investor takes the amount of
the NAV also.
while investing in share, a investor has no other choice to
invest in any other securities but mutual fund give an
option to the investor to invest in diversified securities
at the same time...
Share represents, a part ownership of the holder to the
assets of the company, where as mutual fund is the fund
which pools the money from investors into the stocks of
several companies based on risk & return.
Dividend is ditributed for share, but this is not in case
with mutual fund.
In Shares investors risk and involvement exist and also
direct control over his sum. In MF investor doesn’t have
any control over his money and also risk, here fund
managers taking risk of investing the amount in different
kind of products like Shares, bonds, real estate, etc.
In finance a share is a unit of account for various
financial instruments including stocks, mutual funds,
limited partnerships, and REIT's.
Whereas a mutual fund is a form of collective investment
that pools money from many investors and invests the money
in stocks, bonds, short-term money market instruments,
and/or other securities.
I am guessing what you want to know is the difference
between buying stock and mutual fund? In a nutshell, with a
same amount of money:
- mutual fund gives you diversify your investment, such
that risk of loss is reduced.
- stock gives you the focus investment, such that when
there an increase in the value, your return will be higher
(than mutal fund). However, the risk of loss will be higher.
SHARE IS ISSUE BY A COMPANY TO APUBLIC . IT HAS SPECIFIC
VALUE AND IS INVESTED IN ONE COMPANY ONLY.
MUTUAL FUND IS A TAILOR MADA PORTFOLIO WHICH INVESTS ITS
FUND IN DIFFERNT COMPANIES
shares belongs to one company and mutualfunds are
combination of shares of difference companies. risk is
very high in shares and comparitively less in mutual funds
(OR)
SHARE's are the part of owener-ship of the assets of
company.And Mutual Fund are the pool of money to be
invested ...like share market,Fmp,Debts...etc
Share which provide the right of ownership of the company
and share which we own will be for an individual company and
the invested amount will also individual
Mutual fund is pool of money which was collected from the
various investors and invested in certain portfolio these
less risk investment options compare to shares
the difference between the shares and mutual funds is. share is belongs to particular company and right the ownership of the company. coming to mutual funds pooling of funds from different types of inventors. in the mutual funds to risk is low.