What Is The Difference Between Stocks And Mutual Funds?

The Big Question

- Narayan Krishnamurthy

Invest in stocks or mutual funds (MFs)—this is a question that crosses the minds of most investors. There is no either/ or response and depending on what investors expect to achieve from both these instruments, they can choose the one that is most suitable. An easy way to understand the difference between the two is a meal at a gourmet restaurant versus one at a fast-food joint. Mutual funds are like fast food —well packaged, offering a mix that can help you quickly address your hunger.