The growth of the stock market over the years has led to the creation of various types of investment instruments. These instruments are created with the sole purpose of catering to various combinations of risk appetite and financial goals.

While shares are the most traditional way of investing in the capital market, mutual funds are a newer style of investment.

Investing in shares or mutual funds means getting ownership in that company. But you are restricted to that particular asset class only, which means Equity. So you are subject to high return but high-risk scenarios.

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