Share Market

Companies collect money from the Stock market. When a company is in need of money, there are two ways: One is through the bank and the other one is through the help of the share market. When a company collects money with the help of the stock market, they distribute the shares in exchange of money to people. In this case, People get partial ownership of the company and the company gets the money. Company’s share price follows the company’s growth over the long term.

Mutual Fund

Fund means the money collected from the people. In Mutual Fund money is collected from a large number of people. For every mutual scheme, Mutual Fund Company chooses a Fund Manager and the professional Fund Manager invests money according to the goals and objectives. And the profit from the investment is distributed to the people invested in Mutual Funds.

          Share Market            Mutual Fund
Share Market is an investment vehicle in which you can be a partial owner by investing money.
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If you directly buy shares via the Stock Market, you are the direct owner of the shares you bought.
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Demat Account is compulsory.
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You would have to do all the analyses and make decisions yourself. 		A Mutual Fund isn’t an investment vehicle but a fund which invests on an investment vehicle according to goals and objectives of a mutual fund.
For example: 
1. If you invest in a Debt Mutual Fund then the mutual fund invests it on debt instruments such as govt. securities, debentures, etc. 
2. If you invest in an Equity Mutual Fund then it is invested on the stock market by mutual fund. 
3. If you invest in a Real Estate Mutual Fund then the mutual fund company invests it on real estate. _____________________________________________________________________________________________________
If you buy shares via Mutual Fund (Equity Mutual Fund) then you are indirectly buying stocks as an indirect owner. _____________________________________________________________________________________________________
Demat account isn’t compulsory.
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Mutual Fund Manager would do everything from analyses to taking decisions for you.

Mutual funds manage your money while charging you the fees in return and it is included in the expense ratio of the mutual fund. It is also charged yearly. You can also start S.I.P with most of the mutual funds. There are also Brokerage Firms from where you can start investing from just Rupees of 500-1000 in the stock market.