Investing is always , I should say, MUST always be based on a SPECIFIC financial goal. Financial goals is the amount of money we want to accumulate on a defined period of time or number of years for a certain purpose. You must not invest just for the sake of "pogi points", or as a status symbol . If you do investment without a goal, I would liken that to you riding on a bus without a definite destination. So the first requisite to knowing WHAT option is better to invest on is to define first WHY we are investing.
Okay, now that the WHY is settled, then you need to know the difference between MUTUAL FUNDS and STOCKS. I have written earlier in this Blogspot detailed explanation of the differences between the two but let me summarize it here for you... Investing in MUTUAL FUNDS and STOCKS are the SAME. It only differs on who actually manage your funds that you will put into STOCKS. MUTUAL FUNDS are money we put into a pool of fund s which we allow an EXPERT FUND MANAGER to handle how , when, and what STOCKS to buy as regulated also by Securities and Exchange Commission. Investing in STOCKS on the other hand requires you to have the access to a broker, either On-Line (we recommend Citisec On-Line) or any certified , listed broker for STOCKS you intend to buy. It is YOU and nobody but YOU who will define which STOCKS to buy, HOW much, and WHEN.
Investing in MUTUAL FUNDS therefore is much easier, as the role of the investor is simply to put money into the fund, while investing in STOCKS needs active participation from the investor.
However, the thrill and excitement that goes with full control in what STOCKS you invest on is not the same in investing in MUTUAL FUNDS.
So, now you can make a decision on which way to go...invest in MUTUAL FUND or Invest in STOCKS... I say do both. Start first with MUTUAL FUNDS and develop the habit, then proceed to invest in STOCKS once you have the needed skills.
Happy Investing....
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