Stocks are shares of a single company that investors can buy and sell on the stock market.
Mutual funds are different because they collect money from many investors to invest in a mix of stocks, bonds, or other assets.
For example, as of 2026, the HDFC Large Cap Fund held 47 holdings in its portfolio, including 45 equity holdings, 1 bond holding, and 1 other holding.
This shows how mutual funds diversify investments across multiple assets instead of relying on a single company.
Unlike stocks, mutual funds are managed by professional fund managers, and investors buy or redeem them at their Net Asset Value (NAV) through the mutual fund company rather than directly on the stock market.
Learn more in our Mutual Fund Knowledge Hub, where we have compiled 100+ important mutual fund questions and answers for beginners and investors.
Imporatant links on mutual funds:
1. What are the benefits of investing in mutual funds?
2. Different types of mutual funds
3. What is SEBI
