Comparison of Return earned on Mutual Funds & Investment In Stock Market

Sr.No	Points of Difference	Return on Mutual Funds	Return on Stock Market Investment
1.	Lock in Period – Illiquidity	There is no lock-in period.	There is no lock in period. The amount can be readily withdrawn anytime you want. It is high liquid.
2.	Exit Load – Early Withdrawal Penalties	Mutual Funds Impose heavy Penalties of almost 1% of amount invested on early withdrawal	The Amount invested is highly liquid. There is no lock in period, so a person can remove funds anytime he wants.
3.	Tenure – Long Duration	Generally, it is suggested for people to keep their amount invested for long duration of atleast 2-3 yrs to earn a decent return	There is no specific tenure. You can exit a stock after booking profits on reaching your target price & re-invest the same amount in another stock. Thereby a chance to earn higher returns.
4.	Professionally Managed	They are Professional Managed by Fund Managers	They are professionally managed by Fund Managers (When you join us)
5.	Mutual Fund Charges	Investor needs to pay a fixed extra charge of 2-3% of Total Investment per year as Mutual Fund charges	There are no such charges to be paid by the Investor
6.	Management Fees- To be paid in Losses too	Here you have to pay Management Fees even in case of Losses too. (Negatives returns given by Mutual Funds)	You don’t need to pay performance fees in case of Loss. As you need to pay only when you earn above 6% return.

Categories: Investment