Difference between Share Market and Mutual Funds

Share Market is a specific kind of market where shares are brought and sold by different institutions and individuals. You need to open a DEMAT account to be eligible to take part in such types of transactions. Here, all the market research work required to be done by ourselves.

On the other side, Fund means collective money which was collected from people. Mutual Funds are managed by profession fund manager who are hired by the companies. In mutual funds, fund manager invest money, according to goals and objectives described in mutual fund schemes, on behalf of us. Here all the market research regarding in which company we should invest is done by the fund manager in against a small % of commission they charged from us.

Some common categories of mutual funds are:

> Equity funds - funds that invest only in stocks and other equity instruments

> Debt funds - funds that invest only in fixed income instruments

> Money market funds - funds that invest in short-term money market instruments

> Hybrid funds - funds that divide investments between equity and debt to create a balance

Disclaimer:-

The contents of this article are solely for informational purpose. It does not constitute any professional advice. The author does not represent that the contents of the article are accurate or complete. Neither the Site/Blog 'Your Instasolv' and the author accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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