difference between shares and mutualfunds?
Answer Posted / ankit dabda
Shares are a small part of mutual fund. When you are investing in the shares then you are buying the risk and profit of that company and ownership to an extent. But in case of mutual funds you buy the unites of that fund and further this collected fund is used to invest in shares and other types of securities like debentures, bonds and in money market. So we can say that in shares you directly invest and have control to take decisions as your own. But in mutual funds , you can just minimize your plan(again given by company)for example if I purchase shares of a company then I can sell them any time if i feel any kind of risk but in case of I can only change my proportion as few percentage in equity shares and other in debt market but I cant say not to buy or sell the shares of a particular company which AMC has purchased on behalf of the mutual fund investors.Risk and return will be shared mutually by everyone in mutual funds.
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