In the world of investing and trading, there are multiple vehicles to grow your money — but they’re not all the same. Here's a clear comparison to help you understand which instrument suits your needs, skills, and risk profile.
๐ Comparison Table
Feature | Mutual Funds | Equity (Stocks) | Futures | Options |
---|---|---|---|---|
Ownership | Indirect (via fund manager) | Direct (you own shares) | Contract-based (buy/sell later) | Right to buy/sell, not obligation |
Capital Required | Low (₹500 SIP possible) | Moderate (per share price) | High (lot size × price) | Low (just the premium) |
Risk Level | Low to Medium | Medium to High | High | Very High |
Return Potential | Moderate, stable | High (if selected well) | High but risky | Very high (or zero) |
Time Involvement | Passive | Moderate (needs research) | Active, short-term | Very active, time-sensitive |
Charges | Fund fees, exit load | STT, brokerage, taxes | STT, brokerage, margin fees | STT, premium cost, brokerage |
Who Manages It? | Professional fund manager | You | You | You |
Leverage | No | No | Yes (margin) | Yes (in-built) |
Best For | Passive long-term investors | Active long-term investors | Experienced short-term traders | Speculators, hedgers |