The Difference Between Equity Mutual Funds and Stock Investments, Which Is More Profitable?

Previously, it was explained that the notion of mutual funds is a forum to raise funds for investors. The funds are then invested by the investment manager into various securities, such as bonds, stocks, deposits, and the like.

This time, we will discuss one type of mutual fund that is promising, namely the stock mutual fund. We will also explain the difference between stock mutual funds and stock investments. Checkidot!

What is Equity Mutual Fund?

As the name implies, equity mutual funds are a type of equity mutual fund in which 80% of the total assets are invested in securities in the form of equity or shares. Because most of the securities portfolio is placed in stocks, the investment growth also follows the movement of the stock.

For this reason, the risk of equity mutual funds tends to be higher than other types of mutual funds. Even so, the high risk in equity funds is also directly proportional to the profit/profit.return obtained or according to the term high risk high returns. Therefore, this type of mutual fund is considered the most promising of all types.

This stock mutual fund is suitable for those of you who have a long-term investment goal of more than 5 years, but have not been able to raise capital for stock investment. However, because the risk is high, you must also be prepared to profit and be prepared to lose. Examples of goals for an equity fund are the cost of buying a house, retirement funds, etc.

The Difference Between Equity Mutual Funds Vs Stock Investments

So that you are not confused about the difference between a stock mutual fund and a stock investment, consider the following list of differences.

Fund Manager.

According to the scheme, equity fund managed by an investment manager so you don't need good knowledge about investing or stocks. On the contrary, stock investment done independently so you have to equip yourself with a good understanding of stocks.

Risk.

Investor relations and investment managers in equity fund is two-way, investors need investment managers, and vice versa. This means that the risk of loss is also shared, so when you experience a loss, it will affect the investment manager's reputation. On the other hand, investors who stock investment will independently bear at its own risk. Therefore, investors must understand very well about stocks.

Minimum Investment Cost.

You can start investing IDR 50.000-IDR 100.000 for stock mutual funds. Whereas for stock investment, you need a bigger capital, for example Rp 5 million.

Return.

Average return equity fund in a year is 20 percent. However, investors are sometimes still charged with additional costs, such as purchase fees, sales fees, and fees for investment manager services. Whereas, return stock investment depending on which stock the investor is targeting, it could be higher than a stock mutual fund or even lower due to inaccurate fundamental analysis.

Tax.

All mutual fund products are not subject to tax, so the proceeds from the sale equity fund will not be taxed. For stock investment, You will be subject to 0,1 percent final tax when selling shares and 10 percent tax to dividends.

Disbursement Process.

Because equity fund managed by a third party, then the disbursement of funds waiting for the process up to 5 trading days. Meanwhile, the disbursement of funds for stock investment can be received more quickly in the account.

Freedom to Choose Stock Products.

The selection of securities, in this case shares, is the duty of the investment manager in equity fund, so that investors put full trust in him. Meanwhile, in stock investment, investors can freely choose stocks that have good prospects in the future according to their observations.

Equity Fund with Return Best

After knowing the difference between stock mutual funds and stock investments, don't forget to also learn how to work and how to invest with mutual funds. After that, you also have to choose a good stock mutual fund product.

Currently, you are free to choose stock mutual fund products through marketplace mutual funds such as Bibit, Bareksa, or the IPOT digital platform. However, you can also consider stock mutual fund product recommendations with: return the highest for a year (2020-2021) the following version of Liputan6.

1. Steady Stock Treasure Mutual Fund with return by 106,2 percent.
2. Pan Arcadia Stocks Growing with return by 77,78 percent.
3. Millennium MCM Sectoral Equity with return by 76,63 percent.
4. Super Maxxi Treasure Fund with return by 73,79 percent.
5. Pan Arcadia Progressive Equity 2 with return by 67,11 percent,

Until here, our discussion about mutual funds shares. We have given the difference between stock mutual funds and stock investment, along with which stock mutual funds are with return best for the past year. Now, it's your turn to start investing. Good luck!

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