Which is better Stocks or MF or ETF

[rai07]

members pls share ur views which is better for investing

 

[palka]

Both are good investment vehicle, However if you prefer actively managed funds, you are better off with MFs. Also you need a demat account to buy ETFs

 

[yodlee99]

I guess the answer is it depends on the kind of stocks or mutual funds or ETFs that you invest in. If I know which stock is going to be a multi-bagger, I would jump in. Due to lack of such predictability or time to invest in research, I would prefer mutual funds and ETFs over stocks, any day. Go for famous mutual funds that invest in equity diversified ones and are also well managed. Check other posts in this forum to find the best out there.

Regarding ETFs which are relatively new to the market, check this out:
http://new.valueresearchonline.com/story/h2_storyview.asp?str=14970

 

[palka]

If I know which stock is going to be a multi-bagger, I would jump in. Due to lack of such predictability or time to invest in research, I would prefer mutual funds and ETFs over stocks, any day.

Well said :thumb:

 

[milind]

Reading the question, I think you need to educate yourself before committing any funds - about risk and rewards involved in various investments and about asset allocation. Value research has some good write-ups about it.

Its good to save and invest regularly. It is also important to have some rainy day funds in safe investments (post office, fd etc) before going for riskier stuff like equities.

-- Milind

 

[pavvu_kk]

Diversification, my friend, is the keyword. I would suggest you have investments in all three of them. So the question should rather be what should be your allocation to each of these instead of asking which is better.

If you are kind of investor who understands businesses, P&Ls, BLs OR technical charts etc your major chunk should be in Stocks.
Else it should be in actively-managed MFs.
Nevertheless, you can have a minor part of your investment in ETF (tracking indexes). Though, it beats me why one would invest in index when many of the popular actively-managed funds beat index comfortably.