Stock Market vs Mutual Funds: What’s the best investment option for higher returns?

financialexpress.com:

Whether you should invest in stocks or in mutual funds is a debate as old as the emergence of financial markets itself. Let’s draw from historical data and technical analysis to see which one is the better option for higher returns.

When it comes to investing for potentially higher returns, the stock market has long held the spotlight. Historical data consistently shows that over the long haul, stocks tend to outperform many other investment options. The idea of owning shares in individual companies, riding the wave of their growth, and possibly reaping substantial profits has drawn many investors to the stock market.

One of the primary perks of investing in stocks is the potential for capital appreciation. This means that your investments can grow in value over time, offering handsome returns, especially if you can spot and invest in companies with strong growth potential. Additionally, while not guaranteed, dividends can serve as a source of income for stockholders.

However, it’s important to acknowledge the inherent risks associated with stock market investments. Stock prices are known to be volatile, influenced by factors like economic conditions, company performance, geopolitical events, and investor sentiment. Hence, the timing of your investments and the selection of stocks play pivotal roles in your success in the stock market. This is where technical analysis involving the study of price charts and the use of fundamental analysis to make informed decisions can be a valuable tool for investors looking to maximize returns while managing risks.

Also Read: 5 mistakes to avoid if you want higher mutual fund returns

Mutual funds offer a diversified approach to investing. These funds pool money from multiple