Investing| Mutual Funds| Stock market| pros and cons

Q: What is Investing?

Ans: Investing means to put money into financial schemes, shares, property, etc which will yield or earn us some profit in the future on the invested amount.

Q: Why should you invest in the stock market or mutual funds?

Ans: Stock market and mutual funds are the same as well as different type of investment. Though it is investing in the same type of business base, format is different. In the stock market, you have to do the research about the stock market and companies registered in it. The investment is done by you and you should have the knowledge of the market when it will go up and down, which company is going to perform? and which is not. You have to be aware of the economy and follow the business market news. To conclude you have to give the maximum amount of your working time to earn maximum profit from the market.
        In mutual funds, the same thing is done. Investing money in financial schemes like Equity, Debt, Liquid funds, etc. But these investments are done by mutual fund companies and it's fund manager on behalf of you. These managers are the pros of the market and they know A to Z about the market which in turn brings more profit to your investment. The chances of loss of your investment drastically reduce.

   1.Pros of Share market:

• You have 100% control over your capital.
• You can make more profit.
• You can choose which company you want to invest in.
• You don't have to pay any commission, just small charges levied by middle brokers like zerodha, etc.

      Cons of Share market:

• You have to be a full-time investor.
• Chances of loss are high if you don't have good knowledge.

  2.Pros of Mutual Funds:

• You don't have to be a full-time investor.
• Your rate of profit on your investment will be steady.
• Risk of loss on the invested amount is low.

     Cons of Mutual funds:

• The amount will be locked in period for a minimum of 3 years to maximize profit.
• Tax deduction amount is high.

To know more about mutual funds house: 

• SBI Mutual Fund
• Reliance Mutual Funds 
• HDFC Mutual Fund
• Axis bank Mutual Fund

!! Please share and subscribe to my blog for more information regarding mutual funds !!