In the latest episode of Kotak Mutual Fund and Network18, present Investmentor, experts answered probably the most asked question- Stock Market Vs Mutual Funds- where to invest?
Many individuals often face the dilemma of whether they should stress more upon direct equity investing or increase the allocation of mutual funds in their portfolio.
To answer all the queries and give an in-depth understanding of both the asset classes, Nilesh Shah, Group President & Managing Director, Kotak Mahindra Asset Management Company and Manish Mehta, Joint President & National Head, Sales, Digital Business and Marketing, spoke to Surabhi Upadhyay of CNBC-TV18 and shared their opinion how investors should look at the two investment tools.
During the conversation, experts advised investors to do thorough research while allocating funds in the stock market, take the investment approach than trading, check risk appetite, etc.
Speaking about direct equity investment and mutual fund, Mr Shah shared some insights for medium-risk investors.
“If you don’t have time, you don’t have energy and knowledge; then you should invest via mutual fund. The financialisation and retailisation of the equity market are positive for mutual funds from a longer-term point of view,” he said.
Talking about few hygiene rules before taking a call between the two asset classes, Mr Mehta mentioned some words of wisdom for investors to follow.
“Patience is crucial. Over the years, the market has taught us it tests us. It tests our anxiety and patience. If you want to look at investments directly into stocks on your own, you shouldn’t depend on the WhatsApp forwards or tip of the days usually sent; there is a much larger degree of research one should do,” said Mr Mehta.
The experts also spoke about investing in mutual funds, identifying suitable schemes, and maintaining financial planning and objectives.
An investor education initiative by Kotak Mahindra Mutual Fund.
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