This is to inform that by clicking on the link, you will be leaving our www.sc.com/inand entering a website operated by other parties:

Such links are only provided on our website for your convenience and Standard Chartered Bank does not control or endorse such websites, and is not responsible for their contents.

The use of such website is also subject to the terms of use and other terms and guidelines, if any, contained within each such website. In the event that any of the terms contained herein conflict with the terms of use or other terms and guidelines contained within any such website, then the terms of use and other terms and guidelines for such website shall prevail.

Thank you for visiting our www.sc.com/in


Mutual Funds or Stocks – What is a Better Option?

Mutual Funds or Stocks what is a better option?

Mutual Funds or Stocks – What is a Better Option?

Mutual Funds or Stocks – What is a Better Option?

Every service has two options – do it yourself or trust an expert. Similarly you either invest directly in stock markets versus investing through the mutual funds route.

Mutual funds or stocks - what is a better option?

Every service these days has two options – do it yourself or trust an expert to do it for you. In the world of investments, the equivalent of this is direct investment in stock markets versus investing through the mutual funds route. However, which one is best suited for an investor? Read on to find out.

Horses for courses

Doctor can understand their own ailments and can treat themselves. Plumbers can fix water leaks at their own houses and carpenters can easily make wooden articles for themselves. Similarly, skilled finance professionals understand stock markets better to make winning trades and investments.  All of us want to try (or have tried) our hands at direct stock investing, but few of us really build a track record. Wealth creation through direct equity investing requires patience and skill.  Choosing the right stock requires you to carefully study the company performance, the macro factors, watch out for news in the market, undertake technical and fundamental analysis – all of which require skill, time and effort. The average investor would be unlikely to have either.

Mutual funds adopt a different approach. The investor transfers the money to be invested to the fund-house, and the fund manager invests and monitors everything related to investments. With professional degrees, experience and a constant learning ecosystem around them, mutual fund experts can be pretty successful in generating returns on behalf of investors. Over the long term, many mutual funds have given superior returns annually. Apply now to invest in mutual funds with Standard Chartered. Hence, mutual funds appear as a good solution for most people who don’t have time and skill at their disposal.

Value of time

For the successful direct stock investor, a 20 percent return annually may look small. This is because the stock market can give you multifold returns in a year if things go your way. But the probability of making superlative returns is minuscule and is also accompanied by the risk of booking losses en route. Trading in stocks requires an understanding of how the stock market works, how trades happen during specified market hours and lots of time.

In mutual funds, all of this is taken care of by the fund manager. Moreover, the fund manager doesn’t invest your money in one or two stocks. They build a portfolio of over 20-50 stocks. This lowers the risk of investing, which means that the impact from the decline in a single stock is reduced. With a Systematic Investment Plan, which allows you to invest regularly, mutual fund plans will give you the benefit of rupee cost averaging and compound your investment over a 5-10 year period. All of this happens in a mutual fund with the investor spending only a few minutesto do the transaction, and there is no need to be a trading expert. Click here to learn about the many benefits of SIP.

Market insights

If you need incisive and actionable market insights, Standard Chartered’s market views can be accessed on-the-go. You can put this information to use for any of your investing needs.  However, if you have a busy work-life, it may be better for you to start your investment journey through our online mutual funds^ platform. Once you gain some confidence as an MF investor, you can always open a 3-in-1 account** later to start learning the ropes of direct equity investments.

As a beginner, mutual funds are a better bet if you wish to partake in the stock market but do not have the time and expertise to pick and choose individual stocks. You can use online mutual fund^ platform to get fund ideas, and smoothly conduct the transaction as and when you want.


This document is for information and educational purposes only. It is meant only for use as a reference tool. It has not been prepared for any particular person or class of persons. The products and services mentioned may not be suitable for everyone and should not be used as a basis for making investment decisions. This document does not constitute investment advice nor is it an offer, solicitation or invitation to transact in any investment or insurance product. The value of investments and the income from them can go down as well as up, and you may not recover the amount of your original investment. Prior to transacting, you should obtain independent financial advice. In the event that you choose not to seek independent professional advice, you should consider whether the product is suitable for you. You should refer to the relevant offering documents for detailed information.

^The Online Mutual Funds platform is an EXECUTION-ONLY platform. If you wish to receive advice from us in relation to transacting in Mutual Funds, you should not use the Online Mutual Funds Platform but should instead contact your banker for further information. We are not acting as your investment advisor nor providing investment recommendations in respect of any transaction effected through the Online Mutual Funds platform, and you must not regard it or us as acting in that capacity. You should consult your own independent legal, tax and investment advisors before entering into any transaction via the Online Mutual Funds platform and only enter into a transaction if you have fully understood its nature, the contractual relationship into which you are entering, all relevant terms and conditions and the nature and extent of your exposure to loss.

Mutual Funds are subject to market risks. Please read scheme related documents carefully before investing. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the scheme(s). All products are subject to suitability and availability.

** 3-in-1 account details to be given.

**The 3-in-1 account features a savings and demat account from Standard Chartered Bank linked with a trading account from Standard Chartered Securities India Ltd..