Comparte Capital Investment

What are the benefits of investing in mutual funds versus directly in shares

With a diversified investment portfolio, mutual funds involve less risk.

One of the great advantages of investing in mutual funds is its professional money management.


Investing mutual fund is more beneficial than investing directly in shares for many reasons. Mutual funds offer professional management, diversification, versatility, and even simplicity for investors. An individual gets confused to choose the right instrument for investing when he starts his investment journey. Many people find investing in stocks is an attractive option than mutual fund investment if they look for extremely high returns. There is a good chance for them to get high returns by investing in stocks, but the risk quotient related to it is comparatively very high. With a diversified investment portfolio, mutual funds involve less risk. Apart from that, an investor can save up money on trading costs if he or she invests in mutual funds. Let us check the benefits of investing mutual funds than opt to invest directly in shares.

Benefits of mutual funds over stock

Investing directly in shares can give you more returns. However, you have to consider the risk quotient associated with it. Besides, investors need to spend time to check the financial market. With professional fund management, there is no need to spend time to watch the financial market for mutual funds as in shares. Take a look at the advantages of mutual funds over directly investing in shares.


Mutual funds invest in a variety of asset classes to make it a diversified portfolio. It helps an investor to get exposure to a wide range of shares or fixed income instruments. A diversified portfolio reduces the risk factors than investing directly in shares. Even if a few securities in your portfolio do not perform well, then the other shares compensate.

Professional money management

One of the great advantages of investing in mutual funds is its professional money management. If you do not have proper knowledge or experience of the working of the financial markets, investing in stocks can be disastrous. By investing in stocks, you need to manage it individually. Investing in mutual funds is safer for investors, especially if they are new to financial markets. With professional money management, your money is safe by investing in mutual funds.


Mutual fund investment is pretty easy, and the Asset Management Companies handle all the formalities of investing. They manage the fund for a nominal fee. However, buying and selling require a lot of formalities and time. In mutual funds, you keep the money invested for the long term and earn good returns for your investment. However, you need to spend time to check the financial market regularly if you invest directly in shares.

Comparison of mutual funds and Shares

Understanding mutual funds and shares

Many investment advisors suggest mutual funds to their clients for investing their hard money to generate returns because it is relatively less risky than shares. With a diversified portfolio, the risk spreads across in the case of mutual funds make it a safe investment option. As a novice investor, you need to do extensive research before investing in shares, whereas a mutual fund manager helps their investors to manage the fund. However, fund houses charge a nominal annual fee for managing their funds.

When it comes to making investment decisions, it is better to approach an expert, especially if you are a new investor. A good mutual fund advisor can help you to choose the right funds to maximize your returns with minimum risks. Every investment expert suggests mutual funds for new investors to fulfill their personal financial goals because of the advantages that it offers.  If you are a safe and less risky choice to invest your money, a mutual fund is the best suggestion for you.

That’s why Comparte Investment team asks do you have “Nivesh Ki Aadat”.

With this one can say “Mutual Fund Sahi hai”, so let me do Nivesh / Enquire