Stocks Vs Mutual Funds: Which Will Make You Rich Faster?

Published : 19 October 2023

By : Sachin Gupta

It is a dilemma for investors on where to put their money: Stocks or Mutual Funds.

Stocks are a direct investment in a company, while mutual funds invest in company stocks in addition to other asset classes based on the particular scheme. 

However, which one will make you more money is a subjective matter. Both the instruments can be classified as equity and thus carry their own pros and cons. 

Stocks can be concentrated investment as it is limited to a few companies. On the other hand, a mutual fund invests in multiple companies offering a higher degree of diversification. 

Compared to mutual funds, stocks are high-risk but also offer higher comparative returns. However, for stability in the portfolio, mutual funds win the race. 

So, which one is the winner? 

Both stocks and mutual funds. When invested for the long term, both these instruments offer higher returns and help you achieve financial independence. 

Consistency, long-term vision, and persistence are the important factors here combined with goal-based investing as per your preferences and risk appetite.