Direct equity or mutual funds: Experts suggest where and how to invest

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© Abhishek Vedpathak Direct equity or mutual funds: Experts suggest where and how to invest

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.

One-time KYC (Know your customer) registration is mandatory to invest in mutual funds. You can complete the same by submitting the following at any of our branches or collection centres: a) Duly filled and signed Central-KYC application form. b) Proof of Identity: Any document notified by the central government. c) Proof of Address: Same as identity proof (except PAN). d) Recent Passport Size Photograph. Copies of all documents submitted must be self-attested by the applicant and accompanied by originals for verification. You may also avail Online KYC Registration facility while opening an online account. For more Information such as details and documents for KYC registration, change of bank details and change of address or phone number. Log on to In case you are KYC verified and want to update any information, please submit a completed KYC details change form with the required self-attested documents as proof to our nearest branch or collection centre. If you have a complaint regarding your fund house w.r.t. your investment, you may reach out to them at their customer service contact number or write to their respective customer service email IDs. Alternatively, you may also contact their investor relation representatives at the branch office listed on their website. Additionally to this, you may also contact their Compliance Officer(s) for further escalation or you may also contact the Managing Director of the fund house with your grievance. You can also lodge your grievances with SEBI at or you may also write to any of the offices of SEBI. For any queries, feedback or assistance, please contact SEBI Office on Toll Free Helpline at 1800 227 575 / 1800 2667 575. Investors should deal only with registered Mutual Funds details of which can be verified on the SEBI website under “Intermediaries/Market Infrastructure Institutions”.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.

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