Direct Stock Investment VS Mutual Funds
|Features||Direct Stock Investment||Mutual Funds|
|Investor's Control On Stock Selection||Complete Control||No Control|
|Buying Or Selling||Buying or selling possible at any point of time on trading day||Buying or selling possible only at the end of trading day post NAV computation|
|Entry or Exit From Single Stock||Possible|
If a particular stock is not doing well, one can exit easily and immediately opt for a better performing stock.
|Demat Account||Mandatory||Not Mandatory|
Stocks can be held in Demat form and are highly liquid. Technical analysis will help traders with entry and exit in stocks on a day-to-day basis which is not possible in mutual fund investment.
Speculative trading is possible through derivatives, which is a high-return, high-risk product.
|Exit load||No exit load||Exit from equity funds within 1 year of investment attracts exit load of up to 2%.|
|Individual Selection Of Stocks||When you are investing directly into stocks, you are at leisure to select them and create your own portfolio.|| Not Possible.|
It is entirely dependent on the portfolio selected by the fund manager.