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Difference between Mutual funds and shares?


what are the advantages and disadvantages in MF

Shares are that you buy directly from stock market for your self. Mutual fund companies also buys shares for the mutual fund with the fund money. You can buy mutual fund units from the FM company. With your money they buy shares for the MF. Mutual Funds are nothing but a group of investors amount managed by a professional companies. That companies (MF) will charge some amount for the buying and selling they do on our behalf. They are in no way connected to our profits or losses. They get their commission.

Regarding the advantages, people may not know which stock to buy when to buy and when to sell. Also they will not have time to study. For them MF are much better. The only disadvantage with the funds are if you exit in short time, then they may charge around 2% exit load depending on the MF and scheme you chose.

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