We come across many investors who need clarification on whether they should invest directly in equities or via mutual funds. These investors have the perception that it is better to invest in equities directly rather than through mutual funds and the most common arguments or reasons for these beliefs are: It is easier for the amount invested in equity to double than it would be through a mutual fund; some would even say that the latter is not possible. Also due to volatility in share market, it is a more exciting investment experience. This has led us to analyze the similarities between direct equities and equity mutual funds or rather the difference. “Should one invest in direct equities or equity mutual funds”? First of all, you need to understand that from a taxation point of view, equity mutual funds and direct equity have the same structure – there is no difference at all.
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Simple yet powerful tips for budding MFDs/advisors
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