Differentiate Between Mutual Funds And Stocks

in this article, you can find the Differentiate Between Mutual Funds And Stocks. this article helps you to understand the basic knowledge about Mutual Funds And Stocks.

In simple language and with the simple example you can Differentiate Between Mutual Funds And Stocks

Mutual Fund

We can say in simple language mutual fund means Low risk and Get Low or more benefits. Mutual fund investments are handling by expert persons. And they take the low amount of charge against this work.

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If we want to understand mutual funds with an example.

First example:-

If you want to go from Nasik to Mumbai. Then you will go by bus because you do not have much more knowledge of roads and Mumbai city. So you can go by bus because the bus driver knows everything. He is going to Mumbai every day. He is doing this work for a long time and continually. You can go and seat on the bus then you can reach Mumbai easily.

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Second example:-

In a horse race, five horses are running. Winning the first prize is 50, second prize 30 and third prize is 20. The bid amount is 30 rupees. So you have bid on one horse 10 and on second horse 10 and on third horse 10 rupees. In five horses your bid horse will be surely come it may become first, second or third. Here your benefit is sure.

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Stocks:-

We can say In simple language Stock means high risk and high benefits. You can handle the Stock investments, with expert advice.

If we want to understand Stock with an example.

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First example:-

If you know the one road that can take you to Mumbai, and eventually that road will be jam due to some reason. Then you might be stuck in one place. Or you can think in this way that big bus cannot move from jam but the small car can pass through road jam with easily. This way the stock works.

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Second example:-

In a horse race, five horses are running. Winning the first prize is 50, second prize 30 and third prize is 20. The bid amount is 30 rupees. So you have bid on one horse 30. In five horses your bid horse will be a win or maybe lose. He may become first. Here your benefit is not sure. But here your benefits are more, and loss is also more.

Conclusion:- Friends this article enhances your primary knowledge about Mutual Funds And Stocks. I also understand the Differentiate Between Mutual Funds And Stocks through these examples but I put them forward in my words.

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