Stock Market vs Mutual Funds where to invest?

Stock Market vs Mutual Funds Where to Invest?

Dear reader, I will give you some points and ideas to finding where to invest in Stock Market or Mutual Funds. so read carefully and apply it accordingly. 

  1. After the budget of 2021, 6,750 crores, has been withdrawn from the corporate bond portfolio, which is the highest withdrawal from the last 23 years.
  2. From stock funds, 10,470 crores have been withdrawn and this withdrawal is taking place for the last 7 months and is the highest withdrawal from the month of November 2020. 
  3. Rupees 16,780 crores have been invested in Overnight or Liquid Funds and rupees 9580 crores have been invested in money market funds.

This data has been published by the Association of Mutual Funds on Tuesday 9th March 2021. So what are you thinking now? 

  • Why people are withdrawing their money from Mutual Funds? 
  • What is the relation to this budget? 
  • Will it be a great choice to invest in the Stock Market from Mutual Funds? 

Stock Market vs Mutual Funds where to invest?

I will be answering all your questions in this article so read it wisely till the end.

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Bond Yield and Mutual Fund Withdrawal

In the 2021 budget, Nirmala Sitharam has clearly mentioned that the government of India will start focusing on the infrastructure sector of the country by increasing the borrowings. From whom the government borrows? Public or Bank How? the answer is with the help of bonds. As much as the government will borrow money through bonds, Government has to pay high interest/ return to the investor and to the banks. This means the expenditure of the government will increase accordingly yields on bonds will also increase. In the coming three years top-rated corporate rupee notes had increased on the basis of 74 points.

People must be thinking about where Mutual Funds invest our money? This data will tell you in detail where your funds on which bonds, on which stocks, and on which company is being invested.

Normally the high-rated bonds mean AAA-rated invest their bonds, on these funds security is high and return is less, on the mid-level rating bonds and stocks the interest rate gets high on the investment because the risk is high. But finally, on which Bond and on which stock the fund will trade will be decided by your manager, till now it is believed to be safe because all mutual fund companies research and security teams are quite efficient.

As the government increases their borrowing through bonds investors withdrawing their money from the bond market also started withdrawing their Investments. Because investors think that the financial condition of the government financial condition is not good. 

And when the governments borrow money from the banks so the banks lending money instead of investing and the banks are also lending money to the government for their project and they are getting a good return from it from the government. This means in the Mutual Fund sector the general public and the financial institution both are withdrawing their money.

Why invest in stocks?

Due to Digital Revolution, 60% of traders in the country are well aware of which stock will go up?, what is the status of the stocks? what is its strength and weakness of the stocks? With the help of the influencers in the country, the investors get updates on a daily basis where their money will give them an immediate benefit. It means the stock market is a great money-making market where less knowledge and practical trading knowledge help you to earn a good profit. 

During the lockdown period, an additional number of clients have been recorded in the Indian stock market. Nifty and Sensex have marked the record at its peak. This happened when the country's economy was at its worst.

This means that investors have a choice from now on whether they believe in the knowledge of the fund manager or do the investment for years, and at one time the return gets started. Invest in equity/stock, intraday, or choose a delivery option or take the advantage of the market positivity where you can get your regular income.

There was an issue of Franklin Templeton who had 6 Mutual Funds who performed well but still got banned in April 2019. After this, there was a case filed against him by ED and SEBI for laundering money and because of this, the retail investors are focusing on the Stocks at present.

Now, if you are still confused so let me clear it out in a short and simple way

  1. If you can take the risk and don't have a blood pressure issue then go with the Stock Market
  2. If you feel fear to lose your money, and don't have time to respond fast, want to save money for the future then go with the Mutual Fund
  3. If you have knowledge about Trading Techniques, what are the entry and exit points, stop loss, intraday, what is FNO, what is delivery, what is put and call, go with the Stock Market
  4. If you only want to save your tax and don't have time to understand the share market, go with Mutual Fund 

Follow these 4 points. Classify yourself, listen to other people, and do only those things which your skill and pocket allow you to do.

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How to buy a share?

  1. For buying shares you need a Demat account.
  2. If you are interested and want to buy shares apply for a Demat Account.
  3. Having a Demat Account with Angel Broking, know how to invest money in different stocks in Angel Broking apps?
  4. You can open a Demat account by submitting you PAN Card, Adhar Card, and Bank Details with any of the stockbroker like Angel Broking.

Disclaimer: The market is subject to risk. Our research is solely for educational purposes only. and doesn't constitute any Trading or Investment advice.  can't be held liable for any Irregularity or Inaccuracy.

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