If you want to invest but don’t know whether to buy a fund or a stock, what is the difference between a fund and a stock ?
The definitions are different:
Stocks are securities issued by listed companies. You can directly buy and sell stocks with a securities account. A fund refers to a fund company that pools the funds of many investors, invests in the stock or bond market, and shares risks.
Risks are different:
On the whole, the risk of buying a single stock is greater than that of buying a stock fund. The fund is relatively less risky because of its diversified investment in different assets.
Different investment thresholds:
In the short term, the volatility of a single stock is greater than that of stock funds. Relatively speaking, investing in stocks requires a good psychological quality to withstand the ups and downs of stock prices, which is more suitable for investors with higher risk tolerance.
Investing in stocks requires a higher level of personal learning ability. Although the threshold for opening a stock account is very low, it is still very difficult to do well in stock investment.
If you don’t have much time and interest to research stocks, you can choose investment funds and find a fund manager to help you choose stocks. Fund companies are more professional than ordinary investors, and fund managers have corresponding investment experience and knowledge.
The transaction thresholds are different:
The threshold for stock trading is high, and the threshold for funds is low. Stock trading is based on one lot, one lot = 100 shares. If you buy a stock of 10 yuan per share, it will cost 1,000 yuan to buy a lot. In contrast, the price of the fund is too close to the people. Even if you only have a balance of 100 yuan per month, you can start investing. For a fund with a net value of about 1 yuan, 1,000 yuan can buy 1,000 copies. In case of urgent need for money, stocks must be sold in units of 100, while funds can be sold one by one, with greater flexibility.