Both funds and stocks are affected by the stock market. The difference is that one is funds and the other is securities. Stock is an equity certificate, while fund is only a trust certificate. Which is more suitable, fund or stock?

Both funds and stocks rise and fall with the price changes of stocks, but the threshold and risks of both are of two levels. The minimum amount of buying fund is low, and the minimum amount of buying stock is 100 shares. Therefore, the threshold of investment funds is relatively lower, and the risk is low.

Stocks are high-risk financial products. It is better not to enter the market at will without certain knowledge reserves. The fund is to buy a variety of stocks. Compared with buying a single stock, the fund has stronger anti-risk ability and the fluctuation of funds is relatively less than that of stocks. The lower the risk, the return of the fund may not be as high as the stock.

The essence of founds is that you give money to the fund manager to invest. The fund manager chooses some stocks to invest according to the market situation and his own judgment. Compared with direct investment in stocks, funds have the advantages of low risk, low cost and no need to worry about themselves. For the general investors, the personal investment capital is limited. It is difficult to reduce risks by diversifying investment types. But buying funds can do this. When investors buy funds, they can enjoy the comparative advantage of fund investment in cost. While reducing investment costs, it can improve investment returns and gain scale efficiency.

Compared with stocks, the fund may have a slightly higher handling fee. Its risk is much lower because it is a decentralized investment.

In addition to the threshold and risk, there are many differences between funds and stocks. The stock price will change at any time. It will fluctuate violently because of a piece of news. Therefore, the general investors may spend more time staring at the market, and may have to bear the psychological pressure of the fluctuation of the stock price. However, the fund has only one price per trading day. Because of its wide range of assets, it is less affected by information. Buying a fund is not as worrying as buying stocks. It does not have to watch the net value of the fund fluctuation all the time and look for suitable trading points. The time to look at the net value every day is relatively less. It is more worry-free and does not need to waste too much time. Moreover, investing in funds is relatively easy, because there are managers responsible for selecting targets.

Whether you buy stocks or funds, you have to face the problem of choice. Stocks are currently numerous in the market, and you will get stuck if you are not careful. In the selection of funds, if they are divided according to sectors or concepts, there are only a few funds under a certain sector. You can determine potential concepts and sectors based on your own judgment, and then select funds with better performance.

So, is it better to buy stocks or funds? Most people are more suitable to buy funds.