Mutual funds vs direct equity: Which investment option should you prefer in 2021?

Mutual fund scheme or direct equity? Well, though both the investments are done in equities, the risk associated differs.

Stock or direct equity investments give investors greater flexibility to invest in companies they believe in and know. It involves a high risk but is a high-reward investment option.

Mutual funds, on the other hand, come with diversification opportunities which helps when the markets are volatile. Investing in mutual funds via SIPs allows investors to gain from price movements and frees them from timing the markets.