Mutual fund or Share Bazar To save money?How they works.

Mutual Fund Vs Stock Bazar

Hello friends . today we are going to understand which one better mutual Fund or Share Bazar . If you want to be really really rich, you have to become really really good at what you do.Life will very always continue, even you are there or not . We will not be young always , one day we will be very older person and we we will realise that we are not able to work , that day your today saving will be very help full .Now w if we talk about Mutual Funds , let me give you one example to clear it . Suppose one person XYZ has started a business and he need money to run XYZ business , so what he will do , he will consult to some Banks , to get some financial help to make business larger . Now first things XYZ person needed to do is , he need to convinced banks that his business is legal. Once it approved that XYZ has legal , banks will offer some money to XYZ, with keeping thin in mind that what ever XYZ will earn he will return in same percentage to banks as he is getting from business . So simply if baks has given 10000 to XYZ and if XYZ has made a profit of 20000 from this 10000 , than XYZ will return some percentage of amount to banks .Now suppose XYZ will not earn anything ,rather he lost money is business . so He may return 5000 to banks instead of returning 15000.  So simply earning here is not fixed you can earn a-lot or less. Only good things here as Banks and one manager is investing for you in various company instead of you, and they know which business is going well and where to invest, so here risk factors are little less . So if a person is going to invest into mutual funds , it is not mandatory to have good skills in Mutual Funds . Now if We talk about Share Bazar , it also works in the same way , only difference is no one is investing for you , you will have to take your own decisions here , you need to analyse which business is doing well in the market. So here if you have less knowledge about share Bazar you may loss money . But at the same time earning in case of Share Bazar is too high as compare to Mutual Funds . So simply, higher the risk higher the earnings. Always try to go with small investment and try to understand your earning or loss , with time as you will learn and become smarter you will start making good money .In the year 2000, instead of buying Royal Enfield, if you had invested that money in its company Eicher Motor than Rs 55,000 investment would have given you a return of 4.75 crores in 15 years.Rs. 10,000 invested in Infosys in the year 1993 would give you well over Rs 2 crore by 2018.