Sunday, July 2, 2017

PSE LISTED STOCKS VS. STOCK MUTUAL FUNDS

STOCKS

Pricing: Per Share Price
Exposure: Single Company
Buying/Selling Of Shares: Subject to board lots and available shares
Research: Done by the investor
Friction Cost: Broker’s fees and taxes to be deducted from proceeds
Liquidity: PSE-Listed but subject to willing buyers and sellers

EQUITY MUTUAL FUND

Pricing: Per NAVPs, a consolidated valuation of all company shares in the fund
Exposure: Multiple Companies
Buying/Selling Of Shares: Subject to minimum amount but no maximum limit
Research: Done by professional research teams
Friction Cost: None. All fees and taxes already incorporated in the NAVPs
Liquidity: Can be bought or redeemed anytime based on prevailing price


No comments:

Post a Comment