Difference Between Equity Mutual Funds vs Share Market
equity mutual funds vs share market

Difference Between Equity Mutual Funds vs Share Market

What is the difference between Equity Mutual Funds vs Share Market ?

Investment is a fundamental aspect of financial security and management. There are many type of investment such as gold, land, infrastructure, shares, mutual funds, technology and everything that is or is expected to have monetary value and benefits. In this blog the primary focus is going to be on difference between “Equity mutual fund” vs “Share market“. Stay tuned till last to get some quite interesting information about investing!

Share Market 

Companies enlist themselves in stock market aka Share market to attract investors in terms of share of their company. Share market is a place authorized officially by an authority of the legal state responsible for specific purposes like financial management in particular field or the government of state itself. Companies listed in a share market issue shares in different ways for people to invest after considering different factors and choose which is best for them. It is a direct way of investing or trading your funds in form of shares. 

Investing in share market as mentioned is a direct investment in stocks of a company hence analysis and strategic planning is very necessary, without it share market could be very difficult to start. However, professional advisors at Dayal Associate can help you with this. This direct investment is one of the key differences between equity mutual fund and share market. With proper knowledge and skills, investments in companies with higher potential can yield higher returns. 

In share market control is completely in your hands and so is responsibility of your money. So, it was very basic description about share market. Now, let’s move forward to our next topic. 

Equity Mutual fund 

We know about shares and exchanges where trades take place such as NSE & BSE. Mutual Funds are issued by mutual fund companies which aims to attract investors with their capital for reasonable return with justified risk. What mutual funds basically do is that mutual fund unit which aggregated by customers like you will buys the stocks mentioned in portfolio of particular mutual fund. That is another primary difference between equity mutual fund and share market. Mutual Funds lower the risk of loss as investment strategies are analyzed by professionals working on it and other reason being a mutual fund consists of several funds, hence loss management is comparatively more effective.

As to buy shares one needs to visit share market with the help of a SEBI certified stock broker, in this case one simply needs to visit mutual fund house. Mutual fund are actually managed by professionals so your voluntary control over money may not be as much as in share market but so is responsibility of your capital on them. When talking about options, there are a lot of options with great potential and especially for those who are not experts or beginners, mutual funds can be a great way to start investing journey. Also mutual funds can be really good in long term as well as short term. 

Investing with mutual funds is just like investing in stocks, the difference between equity mutual fund and share market being that in mutual funds investment you have a reliable dedicated team for research and analysis in most of the cases and your money is in professional hands.


Concluding, regardless of what one chooses either equity mutual fund or share market one thing is for sure that investment is an essential part of financial management for present and more for future. Keeping money certain in banks, you might feel that your money is secure however, inflation is depleting its value vigorously. So instead of keeping money in bank, let the money work for you now and yield returns tomorrow!

Why should you work and not your money?

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