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WHICH IS BETTER IN TERMS OF RETURNS - MUTUAL FUNDS OR DIRECT EQUITY?

Direct equity definitely has given better returns than mutual funds. It should be remembered that investment in share market also carries greater risk.
As we know, greater the risk,bigger is the reward But if one is trained in handling the risk,one may get injured or harmed
Therefore,it is advised, before attempting direct equity investment,one should learn or attempt the art of risk taking in equity markets, or managing risk Take a calculated risk and this may give a much much better rewards than mutual funds.

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ARE PROFITS FROM MUTUAL FUND INVESTMENTS TAXABLE IN INDIA?

Profits from Mutual Fund are of two kinds - Short Term Capital Gains - IF the MF units are sold before completion of one year from the date of purchase, then 15% short term capital gains tax is applicable. Long Term Capital Gains Tax - IF the Units of MF are sold after completion of more than one year (from the date of purchase), then profits (if any) on such transaction are exempted from Income Tax to the extent of Rs One lakh per annum. And if the profit exceeds Rs One lakh per annum, then the amount of profit exceeding One lakh will be taxed @ 10% from current assessment year onwards.