Jasmine
VIP Contributor
Do you want to invest yourself or do you want an expert to make investment for you? This is the basic difference between mutual funds and the stock market. When you invest in stocks, you choose your assets, when you invest with mutual funds, an expert fund manager will make investment for you. They invest it on your behalf. Even though investing always carries some risk, mutual funds are considered very safe – almost risk-free. However, before you put your money into mutual funds, there are a few things to understand. You should know who's promoting the mutual funds (who is the fund manager). Check whether the returns they're promising are realistic. Sometimes, there are scams out there, like HYIP or Ponzi schemes, so it's important to be cautious.