Which are safe Stocks or Mutual Funds?

A return on stock/mutual fund investment is a huge money, compared to a regular savings account, FDs, government institutional/private institutional bonds. Then, which is safer to invest? To know about it, follow the information provided below. 

First, Download the famous apps of Zerodha, Upstox, Moneycontrol, Angelone discount brokerage companies, and they will give you perfect guidance in their blog corner.

These discount brokerage companies do recommend which company stock is safe to trade, or about a specific mutual fund that helps you in saving tax, and produce good returns on investment. 

In brief, their financial experts provide the best solutions and let you understand the safety measures that should be taken in trading stocks or mutual funds. 

Equity market advisers provide you with a right direction, and consulting good discount brokers shall give you a correct answer, which are safe, stocks or mutual funds? 

Note:

All trading experts do emphasize the fact that you must have the ability to take risk, involvement in risk management, tolerance, patience, and discipline goes hand in hand. 

First you must check the merits/demerits of stocks, and mutual funds, and consider the level of risk you should take as per your priorities. You may prioritize health, education, marriage, etc. 

You must apply risk management properly which is proportional to your age index.  

Younger the age, more the risk bearing capacity you would have, therefore, you must begin investments in younger days of life. 

Merits/Demerits of the Stocks and Mutual Funds:

Merits of Stock Markets:

You can benefit from the blue chip stocks which are progressive in nature. As the company’s performance begins to escalate, the shares automatically raise and dividends are issued based on the after tax cut on profits earned. 

You can make profits by selling your acquired stocks at a higher price. 

You can earn more by making an entry/exit position after making proper technical analysis, and studying the company’s credentials. 

Demerits of Stock Markets:

You also have the darker side of stock trading.  It is not just earning huge money, you are bound to get your entire money washed away, so be careful and gather information since stock prices fluctuation are based upon. 

Keep track of the company performance, financial statements, and business expansions, and favourable news on the company, so on. 

You must monitor and regulate your stocks, for that, you must have a thorough knowledge of the stock market trading ecosystem is essential. 

Merits of Mutual Funds:

Fund managers do recommend you in buying/selling of the securities based on your preferences and they are the best financial advisors. 

Banking institutions like HBSC, ICICI, BOB, AXIS, and so on, do help you manage your funds professionally. 

Fund managers do invest your money in a diversified manner that enables you in reducing the financial risk for a stock market collapse.  

You can purchase and sell units, at a price that the stock market holds. 

A liquidity factor allows you to execute the trade in huge volumes.   

Demerits of Mutual Funds:

At the time of units withdrawal you will have to pay huge expenses as compared to FDs, and bonds.  

Fund managers provide you with an option to select the portfolio, but give you no control on the asset allocation. 

In Nutshell:

Both the securities, stocks & mutual funds have specific merits and demerits, and that is dependent on their market operationality. Therefore, you must make a safe play depending upon your financial ability to invest, age, and other responsibilities.