What's the Difference Between Stock and Stock Mutual Funds?

[Suba]

These two types of investment often confuse many people, especially novice investors, to distinguish between equity mutual funds and stocks. Even though both are the same as long-term investments, and choosing stocks as an investment instrument. Both of them also get dividend distribution, but investors who invest in shares on the stock exchange or buyers in the primary market at the time of the IPO will receive dividends directly from profit divided per share, while stock mutual funds dividends are obtained from the investment manager. Of course there are many other differences between stock mutual funds and stocks, which I don't know about.

 

[Stardom22]

Thanks for that my friend. I too constantly being confused by these two terms which almost look like but they have different meanings as far as the investment world is concerned.

 

[Suba]

That's why I brought up this theme as a subject so we can share, I personally have not fully mastered this distinction. Especially now, many mutual fund apps can be connected to the stock exchange, so mutual fund investors can also buy shares on the stock exchange using only one application.