This PPT explains about the difference between stock market investing and mutual fund investing.

1. Stock market Investing
and
Mutual Funds
Image Source: financialexpress.com

2. Introduction
 Investing is another means to earn money other than doing a 9-5 job.
 Investing means putting your money to use to generate additional
income on the same.
 There are various investment vehicles for the investors to choose
from, but people mainly prefer either stock investment or mutual
funds.
 Hence this presentation will give you the knowledge about the
stock/share investment and the mutual funds.

3. Mutual Funds
“Mutual Fund investments are subject to market risks, read all
scheme-related documents carefully.”
 I am sure you have heard or seen this before either on TV, Radio or
newspapers, hoardings etc.
 Many questions come in our mind after reading this, hence let us see
in detail about mutual funds.

4. Meaning of Mutual
Funds A mutual fund is nothing more than a collection of stocks and/or
bonds.
 Mutual funds are pool of money from various investors who wish to
save or make money by investing their money in stocks, bonds, and
other securities.

5. Meaning of Mutual
Funds Each investor owns shares, which represent a portion of the holdings
of the fund.
 Each fund’s investments are chosen and monitored by qualified
professionals who use this money to create a portfolio.
 Investors invest in funds because they do not have the time or the
expertise to manage their own portfolios.

6. Stock/Share Market
 The stock market is the medium through which the exchange of
shares, Equities or bonds takes place between the seller/company and
the buyer.

7. Stock/Share Market
 In India the Nifty and Sensex are the two main indices of NSE and
BSE respectively.
 In addition to NSE and BSE, there are 22 Regional Stock Exchanges
in India.
Image Source: financialexpress.comImage Source: businesszoom.in

8. Investment in Share
market Unlike mutual funds, in share market the buyer directly buys the
shares of the company with the help of broker.
 One basic rule for trading in share market is ``Buy at low price and
sell at high price’’.

9. Investment in Share
market
In order to begin investing in the stock market, you
must have the following
1. Pan Card
2. Broker
3. Demat and Trading Account
4. Buying and Selling

10. Conclusion
 From the above, we can conclude the following:
 No investment is risk-free. Various risks like market risk,
inflation risk, credit risk, interest rate risk, exchange risk, etc.
are associated with investment.

11. Conclusion
 From the above, we can conclude the following:
 Investing in stock market includes both investing in
stocks/shares as well as investing in equity mutual funds. We
have always heard that investing in company stocks is risky, but
so is investing in mutual funds as they are just a basket of
company stocks.

12. Conclusion
However there is the difference between the
characteristics of investing in mutual funds from the
characteristics of investing in shares.
 The investors with limited time, money or expertise may find
mutual funds a suitable investment vehicle. It provides the
benefit of diversification which involves mixing of investments
within a portfolio and is used to manage risk.

13. Conclusion
However there is the difference between the
characteristics of investing in mutual funds from the
characteristics of investing in shares.
 Stocks are not the magic answer to instant wealth with no risk.
The key to protecting yourself in the stock market is to
understand where you are putting your money. You can lose all
of your investment with stocks if you don’t do a detailed
analysis and invest blindly on the basis of the rumors or
unverified information or tips.

14. Read this blog to learn more about
Stock Market Investing and Mutual
Funds
www.finnovationz.com/difference-stock-market-investing-mutual-fund/
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