STOCK MARKET VS MUTUAL FUND

Why mutual fund not stock market.

Some time this question might click in the mind of investors why to choose mutual fund rather than to invest direcly  in share market. Yes if you are investor you have both option you can choose mutual fund or share market according to your need. You must know one thing money invested in the mutual fund will ultimately go in the share market. But the difernce is you will not choose the share market on your behalf there are fund manager who will choose stock to be invested. So lets see what are the difference between share market and mutual fund.

  • In terms of return.

The very first thing that click in our mind is which can give you more profit. Yes there is no doubt stock market is unbeatable if we talk about profit. Investing direcly in the stock market will definitely give you more profit than mutual fund. There are lot of example in our daily life where people have become millionre from the stock market. You can get more than 100% profit in a single year from share market. If you can choose right share it will definitely gain you a lot of profit. One more thing if we talk about stock market you can get profit when there are bear market i.e. if share market is falling you can take advantage and get huge profit from it. You have lot of option like sort trading, intraday, call, put etc. which will give you profit in the bearish market also.

But if we talk about mutual fund as there are lot of share in a single bucket it is hard to get too much profit like more than 100% in a single year. It is not impossible but we rarely see. Like share market our fund manager don’t have option to book profit in bullish market nor he has any option to gain profit in the falling market. There is no option for intraday trading, sort trading etc like share market. So if  market is going up you can get profit but if the market is falling you don’t have any option than wait and watch. Maximum a fund manager can do is shifting the money from one share to another. But if all share are falling than you have to see loss in your portfolio.

  • Risk Factor

If we talk about risk there is risk in both share market as well as mutual fund. But as we know if there is profit there will be risk. Same in stock market there is more risk than mutual fund. But if you are good investor know share market better than you can minimize you risk. But in case of mutual fund there used to be very good fund manager hired by finance company where you relly upon them. They work hard for you to give beat result. In share market you have to work very hard to get profit. There are thousand of stock listed in the stock exchange. It is very difficult to study and choose good stock from them. But in mutual fund there are team with fund manager who study those stocks. In stock market if you are beginner and you don’t know market very well you will definetly loose money. Many people think share market is gamble no its not true share market is not gamble you can’t play gamble in share market you will definitely loose. You have to work hard and you can get fruitfull result in share market you can get huge profit which you can’t have imagined from share market. But in mutual fund you have limited profit as well as lower risk than share market. The fund manager diversify your potfolio to lower your risk.

  • Tax Benefit.

If we talk about tax benefit. There are same rule in stock and mutual fund to pay tax. For any capital gain in short period you have to pay 15% and for long term capital gain you have to pay 10%. But in case of mutual fund if you are using ELSS fund you can get benefit of tax shaving in 80c.

  • Time

As I told earlier in case of stock market you have to do lot of research and lot of study so for all these thing you need to have time. You have to spend lot of time. But in case of mutual fund you don’t need to do much thing so you don’t have to spend much time at all.

  • Tracking

In case of stock market you need to track your portfolio daily. You have to keep on looking your stock. You have to see each and every movement of the company and along with it other competitor company. Any news or rumour about your invested company can change the stock price in a day.

[catlist name="mutual fund"]

WHAT IS MUTUAL FUND?

Mutual fund is an investment option for investors where pool of money collected from many investors to invest in securities like stocks, bonds, share and other assets. In mutual fund money is collected from different investors and it is managed by professional fund manager. Then the fund manager invest the same money in different stocks, bonds, share and other assets.

Let us understand it by an example. Suppose Mr A who is doctor by profession has some money which he want to invest in stock market. But he is bit confuse because there are thousands of share registered in a stock market. So what he will do now. As he don’t have much time to look upon those thousand shares and do some research. So he did some small reseach and easily find which is best mutual fund. And invested the amount in mutual fund. Like Mr A there are lot of person who invest in mutual fund. Now the fund manager took all those money. Did research and invested the money in best different share according to him. Now fund manager will be continuosly looking upon the shares he has invested the money. He will track the share. And if the share he has invested go down he will shift the money in different share. In those days Mr A dont have to look upon those shares. After some days or year later when Mr A need those money. He can easily withdraw his money with some profit. Fund Manager cut small amount as a expense ratio for his service (max 4%).

[catlist name=mutual fund]

Top 5 Best Performing Mutual Fund in March 2020

As we know everyone in the world is suffering from COVID-19 directly or indirectly. Share market has totaly crashed. Maximum company’s share are showing negative trend. In this worst situation still some of the mutual fund are delivering profit. Though they are not like what they used to be 2 months before but at present at least they managed to get some profit. Though it hard to find best fund at now in this situation. Though we continue to do our research so that we can bring best fund for you. We know most of your portfolio had become negative but it’s opportunity you can if somehow managed then it’s best time to invest lumpsum amount in mutual fund or through SIP because it is also a best SIP plan for you.

Axis Focused 25 Fund

Axis Focused 25 Fund is a basically a large cap fund having its stock of 71.89% is in large cap stocks, 12.44% is in mid cap stocks, 1.29% in small cap stocks. It was launched in June 2012. Since launch date it has managed to give 11% return. That means in 8 years 11% return that too in this recession period if a fund give you return of 11% it is really a good fund. Mr. Jinesh Gopani is the fund manager since July 2016. systematic invested plan has given return of 2% in three year 4.5% in 5 years and 10.34% in 7 years. It has asset Rs 9764 crore which shows how much trust people have on this company. Hence you can go for it the return figure will surely show some positive move as soon as this covid-19 go away.

Axis Midcap Fund

Here is another fund from Axis group this is Axis Midcap Fund. It was started in 2 Jan2013. This is basically a midcap fund.  Fund has 82.58% investment in indian stocks of which 11.96% is in large cap stocks, 59.98% is in mid cap stocks, 4.9% in small cap stocks. Since inception it has managed to give a annualised return of 13%. In 3 years 6% , in 5 years also 6% annual return in lumpsum and in SIP it has managed to gain 10%. So here again Mr. Jinesh Gopani is the fund manager since July 2016. It has a fund size of Rs 5126 cr.

SBI Small Cap Fund

SBI Small Cap Fund is a best mutual fund according to me it has given lot of return. But now it has also put down its knees. But it can be a opportunity for investors if you are investing now. It will surely give you good return in future. SBI small cap fund has 90.11% investment in indian stocks of which 2.42% is in large cap stocks, 11.29% is in mid cap stocks, 69.08% in small cap stocks. I has given a annualised return of 0.76% in 3 years, 7.99 in 5 years and 18% since inception. the fund was started in Jan2013. That make this fund attractive. In seven years 18% in this market is a great achievement for this fund.

Axis Long Term Equity Fund

Axis Long Term Equity Fund is basically a large cap fund whose aim is to provide good return for investor investing for a long period. It is ELSS fund so you cannot withdraw your money before 3 year. But it has extra benefit of tax rebate under 80c. It was started in Dec 2009. So let’s see it’s return. In 3 year it has managed to give 2.51% annual return, in 5 years 3.42%, and in 10 years 13%. That’s not very good looking now but it has managed to keep it’s return positive in 3 years infact the most of the big and great name fund negative figures in 5 years also. Hence if you want to go for nice return with some tax benefit you can surely go for it.

SBI Focused Equity Fund

Here is another fund from SBI. Is has its 47% share in large cap stock, 17% in midcap, and 13% in small cap stocks. I had managed to give 3% annual return in 3 years, 4.91 in 5 years and 12. 89 in 10years. The fund was started in 2004. Since inception it has managed to give 17% return. SBI Focused Equity Fund is good fund. It has its investment in all big companies like hdfc bank, bharti airtel. It will surely give nice return in future.

The list of fund we have provided above is a hard research of our team. We have tried to bring best sip plans and best mutual funds Hope it will benefit you. If you like or dislikes please comment so that we can make make our blog better for you.

**** Mutual fund is subject to market risk. Please verify before investing. Data given in this blog is from various websites. It can be changed. B4invest don’t take any responsibility for anything if anyone have any loss.


Should you quit mutual fund

क्या आपको म्यूच्यूअल फण्ड QUIT  करना चाहिए ?

COVID-19 ने तो सभी देशो में जबरजस्त  तहलका मचा कर रख दिया है | इसने न सिर्फ लोगो के स्वास्थ  पर साथ में लोगो के निवेश को भी काफी नुकशान पहुंचाया है | हम बात करेंगे इस मुश्किल घड़ी में आपको क्या करना चाहिए | क्या आपके पैसे पोर्टफोलिओ में काम दिख रहा है इसलिए आपको कुछ समझ नहीं आ रहा | हम बताते हैं आपको क्या करना चाहिए और क्यों | जैसे की आपको पता है इस वक़्त पूरी दुन्या मंडी के चपेट में आ चूका है | एक बात तो तय हैं फिलहाल ये मंदी  ख़त्म होने वाली नही है क्योकि इस से बहुत सरे देश प्रभावित हो गए हैं | ऐसे में आपको पोर्टफोलियो जो अभी शायद नेगेटिव में भी चला गया हो | अगर आप ऐसी इस्थिति  में पैसा निकालते  हैं तो आपको अच्छा  खासा घाटा  हो सकता है तो बेहतर यह होगा की आप फिलहाल उस पैसे को वहीँ रहने दे और बल्कि अगर आपका आमदनी फिलहाल है तो वो पैसा भी उस में लगा दे | क्योकि ये आपको फिलहाल एक अच्छी  अवसर दे रहा है आप आने वाले समय में अपनी प्रॉफिट को अच्छा  खासा बढ़ा सकते हैं |