Someone people think investing is risky it is not risky but without proper knowledge it will backfire on you. There are three types of investment in general first one is equity, second is real estate and third is interest income. We talk only about equity and mutual fund in this blog.
Equity have two types direct into equity through stock market and second one is through mutual fund but what’s the major difference between both instrument. Equity from share market is highly risky because they give high returns means some time results are very good so stock directly hit upper circuit of 20% percent but some time results getting bad then stock fall that’s why stock market give higher return but with high risk than mutual funds.

What is Mutual Fund ?
Second one is mutual fund investment. Mutual fund are manage by highly skilled professionals like MBA, CA, CFA,etc they have more advantage than other people because they learn in their course about businesses. Mutual fund get money from common peoples and invest into market with proper risk analysis. Mutual fund is best for those who have less time and knowledge about business.
If some want to invest into mutual fund then they need to calculate how much amount they can generate from it with the help of SIP Calculator they can do this.
Types of Funds ?
There are many types of mutual funds like equity oriented, debt type and tax saving, gold oriented. Equity oriented only invest into market and their major holding into stocks. Equity also have many types like sector oriented, theme type, small cap, large cap and middle cap,etc.
Debt type are a form of both equity and debt but their major portion goes into debt because they want less returns but have secure money. Tax saving only for those they want to save tax on their income. Gold oriented have highly invested into gold but small portion into equity also.
Why Mutual fund is bad idea for investment ?
Mutual fund have some good points but bad also. Expenses ratio can cut your investment value because expenses ratio charge by manager for managing your money. It apply when you invest your money suppose you invest 10,000 per month so expenses ratio is about 1 percent then your 100 rupees directly goes into pocket of managers as compare to stock market it is high because same amount invested into any shares then hardly they charge you 30 rupees.
Mutual fund also have exit load as compare to stock market they have brokerage charge and that is fix 13.5 per script or 15.7 per script sale per day but Exit load vary fund to fund and generally higher than stocks. Suppose your investment became one crore and you want to exit from that fund but exit load is 1 percent then your one lakh directly goes into tax and after that LTCG and STCG also apply on that.
That’s why if any one want to earn huge money then directly invest your big chunk into market they give high returns like 100 percent and more some time less but all billionaires are become billionaire by holding shares not investing into mutual fund so learn about market and take some risk and earn huge profits. Mutual fund never gave you returns like 200 percent because they have 20 – 30 stock in their bucket if any stock gave high return but other not then this can be set off with other and gave overall less returns.