A mutual fund can invest in equities too, it is then called an equity mutual fund. It is better than a trade because:

  1. A professional manages it. Not everyone can pick equities and ‘trade;

  2. Better for long term to build wealth

  3. Less volatile as horizon is longer. Trades are very short term focused

  4. Less riskier for the above reasons. Traders are known to lose (and sometimes gain) huge amounts on a single day.


Read more: http://www.jama.co.in/trader-vs-... on this topic