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Understanding the differences between mutual funds and stocks
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[QUOTE="Suba, post: 304863, member: 3658"] Capital: An investor has to pay a large fee of more than $ 100 to buy 1 lot of shares, whereas stock mutual funds only need a few USD. Capital is fully managed and controlled by the investor, whereas equity funds are controlled by the investment manager. Purchase: Investor only needs to buy shares on the stock exchange once he has an exchange account and the investor can buy any shares he wants. Meanwhile, in equity funds, investors need to go through mutual fund selling agents. investors also do not participate in determining the choice of shares. Fees: Stock investors will be charged a trading transaction fee, while stock mutual funds will be charged a fee for each withdrawal. Tax: Stock investors will be taxed on the profits earned, whereas stock mutual funds are not directly taxed but added to the income tax report Cashing out: selling stocks doesn't take long, while on mutual funds for withdrawal it takes about 5 working days. [/QUOTE]
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