6 Replies to “What are mutual funds, how are they different from shares, and why are they considered safer than shares?”


  1. Mutual funds are a collection of investments. A stock mutual fund will have many different companies in it. They are not “safer” than individual stocks but can be less risky since there is diversification (not putting all you eggs in one basket).

    Take your time learning this stuff. Read a couple of books on Mutual Fund investing. It will be well worth it.


  2. Mutual funds is something wherein the inverstor is less of a risk compared to shares as in shares we directly invest in co and it is we who do the buying and selling of shares and in mutual funds we invest in only one co. and we get good return also help in tax saving and also is a long term investment



  3. Mutual Funds are many purchases of individual stock exchange offerings in one big basket. They are safer than individual stocks because they are an average of many stocks, not just one stock. There is still risk involved!
    You should also know it is not free! You have to pay a fee to have someone else do what you can not or do not know how to do. Usually 1 or 2 %. You will still have to research, which mutual fund team will do what you need to have done!!!!! Good luck in your endeavor……..


  4. mutual fund is simply a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities (usually stocks or bonds). So when compared to stocks , mutual funds are considered as safer than shares.





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