difference between shares and mutualfunds?
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Answer Posted / varalakshmi
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.
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