Credit Plus Health By Sean Toh - Financial Education - Difference Between Stock & Mutual Funds

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Difference Between Stock & Mutual Funds

The Four Steps To Financial Freedom - Sean Toh

Step1 - The road to financial freedom is to have great health so that you are in good shape to learn.

Step 2 - An open mindset to start learning and practicing what you have learned.

Step 3 - Investing your time in your financial & health education so that you are in control of your life to create wealth to enjoy a better life.

Step 4 - Enjoy the wealth that you have created because you have been taking care of your health.

Resources You Might Need - Sean Toh



	Investing Stock Or Mutual Funds Before you invest your money, you need to understand your investment. Should you invest in stock or mutual fund? You should understand the difference between stocks and mutual funds. Stocks are pieces of corporate pie. When you buy stocks, or shares, you own a slice of the company. For example, if you buy the shares of P&G, you own a slice of P&G. A mutual funds is a collection of stocks, bonds or other securities owned by a group of investors and managed by a professional investment company. In this case if you buy a particular mutual fund like S&P 500 Index Fund, you are owning a collection of 500 companies in this fund. Having understand the difference between stocks and mutual funds, you should analyze your ability to tolerate risks when investing. If you risk threshold is low, maybe mutual funds might be more suitable for you. If you understand your investment so well like Warren Buffetts, he can buy a particular stock like Coca Cola in terms of billions. Understanding the difference between them will help in your investment decision. By Sean Toh

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