Is there a difference between Stocks and Stock Mutual Funds?

[Suba]

Until now, I am still confused about the difference between the shares we buy on the secondary market and the shares we buy in mutual funds. Of course, both are also investment instruments in the capital market. Which is better and more profitable, whether the stock we buy in the capital market or the more profitable stock in mutual funds. Where do mutual fund stocks get dividends from? Or at least what are the differences between stocks and stock mutual funds?

 

[Starmix]

They are different. They have different sources like mutual fund, I was told by the manager that I must also monitor my mutual fund investment because as what he told it's like money market. It's confusing actually.

 

[Suba]

They are different. They have different sources like mutual fund, I was told by the manager that I must also monitor my mutual fund investment because as what he told it's like money market. It's confusing actually.

I really agree with you, stocks and stock mutual funds are very different. The stock you buy in the capital market is entirely your responsibility, both management, profits and losses, you can also decide when to buy and sell stocks, while stock mutual funds are fully managed by the investment manager, so you accept everything is done, for stock mutual fund investors get a profit from the value of the ownership unit and you will also receive a report via a fund fact sheet.

 

[Starmix]

I prefer stocks than mutual funds. It seems there's a bigger difference of interest or profit compared to a mutual fund. Though the capital is intact but the profit is very annoyingly small.

 

[Suba]

I prefer stocks than mutual funds. It seems there's a bigger difference of interest or profit compared to a mutual fund. Though the capital is intact but the profit is very annoyingly small.

Of course, the level of return from capital gains will be greater in stocks, compared to mutual fund stocks, but stocks also have high risks, so we have to use both fundamental and technical analysis.

 

[Starmix]

Of course, the level of return from capital gains will be greater in stocks, compared to mutual fund stocks, but stocks also have high risks, so we have to use both fundamental and technical analysis.

That's so true stocks are also at risks due to external factors. But it doesn't require constant monitoring unlike mutual fund.

 

[Suba]

That's so true stocks are also at risks due to external factors. But it doesn't constant monitoring unlike mutual fund.

This is one of the fundamental factors that we have to analyze, therefore we need an adequate risk profile to invest in shares, especially if we buy an IPO. So don't choose the wrong type of stock.