Equity mutual funds or direct stocks- the dilemma continues

It is your hard earned money. You deserve a safe future. It is the simple dream that has enabled many individuals to invest in a number of investment tools and make their profile impressive. However, as of present there are a plethora of investment options.

Most of the investors are witnessed interested in equity mutual funds and direct stocks. However, it is really tedious to decide amongst them. Hence, in order to pursue the procedure simpler, here is an account of both:-

  1. Mutual fund investments- when you decide to invest in mutual funds, there will be experts who will be handling your portfolio. These are most of the instances associated with good returns. With these funds the net asset value is of significance. However, it will be calculated taking into consideration the expenses and the cost incurred.  If you plan to exit from the equity mutual fund within a time span of 1 year, you will be dealing with 2% exit load. However, after 1 year the mutual funds are tax free. Hence, if you are ready to hold your money or your investments for at least a year, this is the best option. In fact, there is also the tax benefit of Rs. 1 lakhs for the saving schemes which is associated with a 3 year lock in period.
  2. Stocks- when you are planning to invest in stocks directly it implies that you make your own portfolio, and it is you responsible for the stocks you are investing in. Hence, if you find that a particular stock is not showing any growth rate, you can easily go with another investment. Since, you will be a shareholder; you will have a decision to reinvest as and when required. However, since no professional service is involved in here, hence, you should be really careful to track the investments. Direct stock investments can be pursued for short, medium or even long term targets in accordance with your priority. In fact, there is no sort of exit load in this tool.

Hence, you are to decide in accordance with your need and strategy.