Direct Equity vs Mutual Fund Investing

“Mutual funds are subject to market risks. Read all scheme-related documents carefully.”

Newer investors want to make direct equity investments so they can monitor performance of their stock picks .

Investing

Direct - Transactions are done through Broker

MF - Transactions done through fund houses

Mode of holding

Direct - Investment in equity shares hold in demat accounts MF- units can be held in the form of units

Investment   Control

Direct - Investor is in direct control to make investment decisions, MF – Fund House Fund Manager manage fund

Research

Direct - Do it yourself MF -  Fund Managers team work for stock research

Real-time   Investing

Direct - Invest in shares on real-time basis MF – Transaction processed daily with day-end NAV

Tax Benefit

Direct – No 80C Tax Benefit MF – You can avail 80C Tax benefit under ELSS Scheme only

Investing Expenses

Direct – No recurring expenses, transaction cost at the time of Buy/Sell Stock MF – Charge Recurring Expenses how long you invested,