Is Investing in Mutual Funds the Same as Investing in the Stock Market?

No, investing in mutual funds is different from directly investing in the stock market. When you invest in stocks, you buy shares of specific companies and manage your portfolio yourself which requires time and expertise. In contrast, mutual funds pool money from investors and are managed by professional fund managers who invest in stocks, bonds, or other assets based on the fund’s objective. Mutual funds offer diversification and professional management, reducing the risk compared to picking individual stocks.