Direct Stock Investment VS Mutual Funds
| Features | Direct Stock Investment | Mutual Funds |
|---|---|---|
| Investor's Control On Stock Selection | Complete Control | No Control |
| Buying Or Selling | Buying or selling possible at any point of time on trading day | Buying or selling possible only at the end of trading day post NAV computation |
| Entry or Exit From Single Stock | Possible If a particular stock is not doing well, one can exit easily and immediately opt for a better performing stock. | Not possible |
| Demat Account | Mandatory | Not Mandatory Stocks can be held in Demat form and are highly liquid. Technical analysis will help traders with entry and exit in stocks on a day-to-day basis which is not possible in mutual fund investment. |
| Speculative trading | Possible Speculative trading is possible through derivatives, which is a high-return, high-risk product. | Not possible |
| Exit load | No exit load | Exit from equity funds within 1 year of investment attracts exit load of up to 2%. |
| Individual Selection Of Stocks | When you are investing directly into stocks, you are at leisure to select them and create your own portfolio. | Not Possible. It is entirely dependent on the portfolio selected by the fund manager. |