Mutual funds or stocks? Which is better for investment and why?

Mutual funds are often preferred because they offer instant diversification and are managed by professionals, making them suitable for passive investors.

If you enjoy researching companies, have a high-risk tolerance, and seek potentially higher returns, investing in individual stocks might be more appealing.

Stocks generally carry higher risk due to a lack of diversification, whereas mutual funds spread risk across assets.

Stocks require more time for research and monitoring, whereas mutual funds are more hands-off.

Compare fees and expenses associated with both options, as costs can impact overall returns.

Many investors choose a combination of both mutual funds and individual stocks to balance risk and potential returns within their investment portfolios.