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difference between shares and mutualfunds?
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Answer Posted / himadri
Share is the %age of interest of a investor in a company. An
investor Buys or Sells a companies share according to his
risk taking capacity & how much profit he needs. The
decision is purely his.
A mutual fund is the money invested in a proper way to
reduct the risk & to gain more profit. generally the mutual
fund investment organizations have qualified funds manager
which have large knowledge about the risk & return in an
investment. hence they manages the money of the client in
their process. generally when an investor buys a mutual
fund, He has to pay the NAV of the MF. NAV- net asset value
is calculated by the total value of asset where the money is
invested. at the exit time an investor takes the amount of
the NAV also.
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