A lot of us wonder which way is better: investing in the market through the mutual fund or direct share trading? In fact, mutual funds are advisable for small investors. Also your money is diversified across various sectors and various companies, which means the risk factor is relatively less compared to what it would be if you invest in equity directly. Direct equity certainly entails a high amount of risk. An individual has to continually monitor stock prices, upswings and downswings, tweak the portfolio every now and then, which may not augur well for people who lead a busy lifestyle. But then since shares have high risks, profits are also way too high. This means if you select good companies with a long term approach, you can higher returns compared to mutual funds. However if the choice is bad, then it could also be harmful.
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