What is the Difference between Mutual Funds and Stocks?

[tyrim88]

One of thethings about mutual funds is that it is actually a collection of funds from various source and investing house put in the money into profitable venture like bonds and government treasure bills,while shares is your holding you buy through a brooker.

 

[Smiles20]

Mutual funds are not only restricted to shares but also to debt securities such as government bonds, corporate bonds etc. In short, shares are a part of a business, while mutual funds are a cumulative investment that invests in shares, among other asset classes. The difference between them may also include the risk and profit

This is actually a very logical explanation because I have been having a very big intuition that they meant the same thing and they did not have so much differences but now I have learnt.

 

[frederick_9]

A stock is a share that entitles the holder to a fixed dividend, whose payment takes precedence over that of ordinary share dividends, whereas a mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets.

 

[Rolly_blen]

Many novice investors (like me) do not understand the difference between mutual funds and stocks. In fact, understanding an investment instrument properly is very important to avoid mistakes in investing. There may be many types of differences between mutual funds and stocks both in terms of meaning, form of investment, risk and profit, intermediary party, investment period etc.

Stocks are where an investor decides to pool all his or her funds into one company, while mutual funds are stocks that are invested in multiple companies in order for the funds to be diversified, thus granting a better chance of returns.

 

[Ofonime6]

Stocks are where an investor decides to pool all his or her funds into one company, while mutual funds are stocks that are invested in multiple companies in order for the funds to be diversified, thus granting a better chance of returns.

the two have almost similar functions so I think that stock is the market where investor decide to chose the unit of shares he want to purchase and as low as he want depending on the number of unit but mutual fund is the process of investing with multinational company some people may have different defination of this but that is just a little I know about it

 

[Syldan]

Personally I don't also know much about the difference but I most agree with you that understanding the instrument of investment is very important and that will prevent some kind of mistakes that will comes your way.

 

[Rolly_blen]

the two have almost similar functions so I think that stock is the market where investor decide to chose the unit of shares he want to purchase and as low as he want depending on the number of unit but mutual fund is the process of investing with multinational company some people may have different defination of this but that is just a little I know about it

Your submission indicates that you have a fair idea of the difference between the two terms, which is quite good. A lot of people, even in business circles, have the tendency to use these words interchangeably.

 

[Planbizzle]

Many novice investors (like me) do not understand the difference between mutual funds and stocks. In fact, understanding an investment instrument properly is very important to avoid mistakes in investing. There may be many types of differences between mutual funds and stocks both in terms of meaning, form of investment, risk and profit, intermediary party, investment period etc.

Stocks and mutual funds differ primarily in that stocks are instruments that reflect ownership in a single firm, whereas mutual funds are holdings comprised of a pool of revenue raised from numerous individuals.

 

[eenya00]

what i understand about stock is an asset on a single or particular investment but i do not know more about mutual funds as i have not really paid attention to how it works.