Should You Invest Directly in Share Markets or through Mutual Funds?
This video is a little different from what we have presented to you before! In this video, the CEO & Co-Founder of Elearnmarkets & StockEdge will explain to you Investment in shares directly Vs Investment in stock markets through equity Mutual Funds! Know more about us at- https://elearnmarkets.com/
A lot of people are curious to know how you can expertise the art of investing in the stock markets? But the question is it possible for everyone to master the art of picking & investing in stocks? If not then what is the alternative?
So we will talk about the two ways through which you can invest in the markets-
1. Directly investing in stocks through a trading & demat account with a stock broker
2. investment in Equity Mutual Funds
What is important is Equity Investment is required because in the long-term Direct Equity or participation in Equity gives you a better Risk-Reward ratio.
Keep in mind the whole concept of Risk-Free Investment which includes Fixed Deposits or corporate bonds, gives you Freedom to be poor & not Freedom from Risk. Wondering why? The reason is Tax adjusted post inflation or Post-tax inflation-adjusted returns which means adjusting costliness & paying the tax on a fixed income & then if we see the returns on Fixed deposit then you will get the idea that you are not earning but losing money and this is the reason why the participation of equity is necessary & important to for any long term investment
When we talk about investing in the #stockmarket, we generally think about investing in direct shares which just includes buying & selling and second, is investment through Equity #MutualFunds.
To invest directly in the share markets you need to understand & build expertise in stocks, price movements, also consider factors like right tools & techniques, execution strength & learning capability. All these factors will help you to become successful in the stock markets. But if you are involved in a full-time job or a business & investing in the stock markets directly, it is difficult for you then the best way for you to invest is through equity mutual funds which solve all the problems in a very simple way!
For your understanding mutual fund investing -
1. How Mutual Fund gives you the opportunity to participate in the stock markets?
2. How it helps you to generate income?
3. How it overcome all the problems which direct share bazaar investment involves?
There are some rules which are followed by fund managers while investing in mutual funds like- fund managers can't invest more than 5% in a stock, fund managers need to invest at least in 20 stocks, fund managers need to invest minimum 20% portfolio in a large-cap fund which automatically makes it less risky than direct investment in the stock markets plus another advantage is it is managed by an expert who has an in-depth knowledge of the stock market.
Watch this video until the end to know Direct Investment Vs Investment in Equity Mutual Funds which is rightly suited for you!
Read 7 Things to KNOW before Buying THE RIGHT MUTUAL FUND in our blog- https://www.elearnmarkets.com/blog/7-things-to-know-before-buying-the-right-mutual-fund/
If you want to learn to invest then #Elearnmarkets our online portal has various courses starting from the basic to an advanced level.
Do check out our course on Financial Planning & Wealth Mangement- https://bit.ly/2W9TkAn