Direct stocks vs mutual funds

Direct stocks give you control over company selection, but require research, valuation discipline and the ability to manage concentration and volatility.

Mutual funds pool investor money into a portfolio managed to a stated objective, offering diversification and professional management for a fee.

Industry AUM growth shows adoption and inflows—it is not the ROI earned by an individual investor. Fund returns depend on the specific scheme, entry dates, expenses and market performance.

Neither route guarantees returns. Some experienced investors combine a diversified core with a smaller, carefully researched direct-equity allocation.