Portfolio management vs. Mutual fund

Difference between portfolio management and mutual funds?

As we know that the value of money decreases over a period of time. Therefore, keeping a large amount of money in the bank is not a rational decision. But nowadays, bank rates have been falling below the inflation rate. So we must have other options to increase our capital. So one of the best options is to invest the money in the stock market.

But a common investor is not competent enough to understand the strategy of the share market. But there is one of the best options as Mutual Funds and Portfolio Management. Through which they can earn more return over the bank rate. With less shared marketing experience and knowledge. Difference between portfolio management and mutual funds?

Meaning of Mutual Funds:- A mutual fund is a platform where a group of investors provide their money and authorise them to invest and manage their money. Such mutual funds are operated through the fund managers. They are qualified and experienced persons. In return they pay back as dividend and bonus.

Thus, mutual funds invest their funds through a diversified system. Because they would like to eliminate risk.

Meaning of Portfolio Management:- It is the new art of investment by the portfolio manager. They meet the objectives of investors by mix investment. They create an appropriate policy as per the objectives of investors. Then they invest through the intent of investors.

In other words:- A well planned plan is made by analysing the strengths, weaknesses, threats, and opportunities about the investment. It includes the choice of investment as debt vs. equity, domestic vs. International, growth vs. Safety.

There are some following differences between the Portfolio Management and Mutual Fund.

Ownership
Personalization
Fees structure
Convenience
Taxation
Customization
Investment limit
Registered regulators
Affordable policy

Mutual Fund vs. Portfolio Management

OWNERSHIP
MUTUAL FUND:- In mutual funds investors buy the investment services of a professional manager. Such managers invest their money as per their choice instead of investors. So in reality there is no ownership over the investment. Because investors can\’t guide their investment way as per their intent.
PORTFOLIO MANAGEMENT:- IN the portfolio management investors are fully authorised to invest their funds as per their intent. They also change their investment decision as per their desire. Thus, real ownership of such portfolio investment goes to the investors. However, they have to pay a fee for such portfolio services to the portfolio managers.

PERSONALIZATION
MUTUAL FUND:- Mutual funds focus on the investment objectives. Which invests funds through diversified securities. Investors always invest in those securities which are more conservative rather than aggressive due to the lower risk. But mutual funds don\’t have such options to change plans as per their willingness. Because they are not so personalised with their investment.
PORTFOLIO MANAGEMENT:- In the portfolio investment investors are fully personalised with their investment decision. If investors don\’t want to invest in particular securities or stock, the portfolio manager can eliminate such stocks from the portfolio plan.

FEES STRUCTURE
MUTUAL FUNDS:- Mutual funds also contain some charges which are imposed on the investors due to giving them services by the mutual fund managers. But these fees or charges are nominal.
PORTFOLIO MANAGEMENT:- portfolio management contains higher fees as compared to the mutual funds. Fund managers charge high fees for their services. Difference between portfolio management and mutual funds?

CONVENIENCE
MUTUAL FUNDS:- Investment of Mutual funds are more convenient to invest. Any investors can invest with less knowledge throughout the unique platform.
PORTFOLIO MANAGEMENT:- Portfolio Management contains conflicts on the way of investment. Because many factors are considered by the portfolio managers to create the best investment plan for investors. Difference between portfolio management and mutual funds?

TAXATION
MUTUAL FUND:- The income of mutual funds is taxable. Because it is treated as capital gains.
PORTFOLIO MANAGEMENT:- In the portfolio management manages investment in such a way that tax will be minimised. And sometimes return of investment offsets against the losses of the portfolio. So this portfolio management is a tax efficient plan for the investors.

CUSTOMIZATION
MUTUAL FUNDS:- All plans are tailored by the mutual fund company or managers without the interference of investors. So difficulty will arise for the investors to customise investment plans.
PORTFOLIO MANAGEMENT:- In the Portfolio Management investors have the right to customise his investment plan as per his desire. Whether investors took the advice of the fund managers. However, he can customise his investment plan. Difference between portfolio management and mutual funds?

INVESTMENT LIMIT
MUTUAL FUNDS:- Investment of mutual funds can be started with the minimal amount of investment as rupees 500. So any normal person can invest in these funds.
PORTFOLIO MANAGEMENT:- Investment of portfolio management contains maximum investment as near about 5 lakhs. So everybody can\’t invest in such a portfolio due to the large investment. Difference between portfolio management and mutual funds?

REGISTERED REGULATIONS
MUTUAL FUNDS:- There are only 51 registered mutual funds in India under the SEBI.
PORTFOLIO MANAGEMENT:- BUT portfolio managers are 258 registered managers under SEBI. Who\’s counting is more than mutual funds. Difference between portfolio management and mutual funds?

AFFORDABLE POLICY
MUTUAL FUNDS:- Any normal residents of India can afford the policy of mutual funds. Because such plans require a minimum investment amount and minimum knowledge regarding the stock market.
PORTFOLIO MANAGEMENT:- Only business man or rich person can afford this portfolio investment. Because such a portfolio requires a large amount of investment as well as knowledge regarding stock markets.
What is the difference between a managed portfolio and mutual fund?

Conclusion:- Now we can understand the appropriate difference between the mutual funds and portfolio management investment. Allover mutual funds policy is easier than the portfolio management investment plan. Because any normal person can afford the mutual plan but portfolio management about the investment plan cannot afford it easily.

However, you need to know the syllabus of portfolio management under the gndu syllabus. Then you can read the answers to the required questions as per the syllabus. Difference between portfolio management and mutual funds? Difference between portfolio management and mutual funds?

Difference between portfolio management and mutual funds?

Note:- If you get tired on the way to study you can refresh your mind by reading love laden poetry as per your interest from the given category. These poems are able to inspire your mind.