
Mutual Funds or stock markets directly – where to invest, is one of the oldest debates when it comes to personal Wealth Management. Mutual funds allow you to invest a certain amount in a fund where the fund managers use their expertise to invest a client’s money in a variety of stocks to achieve the highest rate of return. Investing in stock markets gives you greater control over the investment on shares is made by the user. However, it makes them more prone to risks as they have to directly deal with the markets.
When compared on a risk Factor, stocks happen to be far riskier than mutual funds. The risk in mutual funds is spread across and hence reduced with the pooling in of diverse stocks. With stock,s one has to extensive research before investing, especially if you are a novice investor. Visit fincash for more details on the various areas of investments. In the case of mutual funds, the research is done, and the fund is managed by a mutual fund manager.

This service though is not free and comes with an annual Management Fee that is charged by the fund house under Total Expense Ration (TER).
If you are a new investor with little or no experience in the financial markets, it is advisable to start with mutual funds as not only the risk is comparatively lesser but also because the decisions are made by an expert. These professionals have the insight to analyze and interpret financial data to gauge the outlook of a prospective investment.
Though you have to pay a fee to mutual fund managers unlike in the case of stocks that you buy individually, the Economies of Scale also come into play. It is true that active management of funds is an affair that does not come free of cost. But the truth is that due to their large size, mutual funds pay only a small fraction of the brokerage charges that an individual shareholder pays for brokerage. Individual investors also have to pay the charges for DEMAT which is not needed in the case of mutual funds.
It is already established that mutual funds have the advantage of reducing the risk by diversifying a Portfolio.

Stocks on the other hand are vulnerable to the Market conditions and the performance of one stock can’t compensate for the other.
Remember when investing in stocks, you will be liable to pay 15 percent tax on your short term Capital gains (STCG) if you sell your stocks within a span of one year. On the other hand, there is no tax on capital gains on the stocks that are sold by the fund. This can mean substantial benefits for you. The tax saved is also available for you to invest it further thus making way for further Income generation through investment. But you will have to hold on to your equity for more than a year in order to avoid paying that short-term capital gains tax.
Long Term Capital Gain (LTCG) is taxed at 10% for gains exceeding 1 Lakh gain (As announced in Budget of 2018). which means one has to pay tax on gains incurred in period over an year (Long term) if amount exceeds 1 Lakhs in a year at a Flat rate of 10%.
In the case of mutual funds, the decision pertaining to the choice of stocks and their trading is solely in the hands of the funds manager. You do not have control over which stock is to be picked and for what duration. As an investor, if you invest in Mutual Funds you do not have the option to exit from some stocks that are in your portfolio. The decisions pertaining to the fate of the stocks rest in the hands of the fund manager. This way, an individual investing in stocks has more control over their investment than an investor who invests in mutual funds.
A well-diversified portfolio should include at least 25 to 30 stocks but that would be a huge ask for a small investor. With mutual funds, investors with small funds can also get a diversified portfolio. Buying units of a fund allows you to invest in multiple stocks without having to invest a huge corpus.
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When you invest directly, you will need to invest a lot more time and research into your stock while in the case of mutual funds you can be passive. The fund manager is the one who invests his time to manage your portfolio.
With an investment in mutual funds, you have the benefit of a fund manager who has extensive expertise and experience in the field. Whether it is picking the stocks or monitoring them and making allocations, you do not have to worry about any of it. This service is not available in the case of stock investments. You are responsible for picking and tracking your investment.
When investing in mutual funds, remember that you will have to give the funds at least 8-10 years to generate good returns as these have a longer-term growth trajectory. In the case of stocks, you can get quick and good returns if you choose the right stocks and sell them at the right time.
Despite all of this if the stock market and its intricacies are something that an individual is familiar with, they can invest directly. They must be ready to play a long term game where a stock doesn’t provide immediate returns and must also have an increased appetite for risk. Unlike investors in mutual funds, they do not have the expertise on Smart investment which fund managers can provide. Even in the best of times, investment in stocks is a risk. In comparatively tougher times, it is better to invest in mutual funds due to the advantage of portfolio diversification, professional management and constant monitoring.
The choice between mutual funds or stocks generally boils down to personal factors like trust and an individual’s ability to take risks. It is a decision to be taken with the utmost of thought with all the options carefully weighed down. However what is important for an individual is the decision to plunge into personal wealth management and attempt to make their savings useful through either mutual funds or stocks, rather than simply sitting on it.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) ICICI Prudential Infrastructure Fund Growth  ₹200.88  
 ↓ -0.43 ₹7,645 4 10.7 7.3 28 37.5 27.4 HDFC Infrastructure Fund Growth  ₹48.53  
 ↑ 0.02 ₹2,483 2.6 8.4 4.4 28.4 35 23 Franklin Build India Fund Growth  ₹146.146  
 ↑ 0.15 ₹2,884 4.2 9.8 5.5 27.5 33.3 27.8 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Oct 25   Research Highlights & Commentary of 3 Funds showcased
Commentary ICICI Prudential Infrastructure Fund HDFC Infrastructure Fund Franklin Build India Fund Point 1 Highest AUM (₹7,645 Cr). Bottom quartile AUM (₹2,483 Cr). Lower mid AUM (₹2,884 Cr). Point 2 Oldest track record among peers (20 yrs). Established history (17+ yrs). Established history (16+ yrs). Point 3 Rating: 3★ (lower mid). Rating: 3★ (bottom quartile). Top rated. Point 4 Risk profile: High. Risk profile: High. Risk profile: High. Point 5 5Y return: 37.53% (upper mid). 5Y return: 35.02% (lower mid). 5Y return: 33.34% (bottom quartile). Point 6 3Y return: 28.01% (lower mid). 3Y return: 28.38% (upper mid). 3Y return: 27.51% (bottom quartile). Point 7 1Y return: 7.29% (upper mid). 1Y return: 4.43% (bottom quartile). 1Y return: 5.49% (lower mid). Point 8 Alpha: 0.00 (upper mid). Alpha: 0.00 (lower mid). Alpha: 0.00 (bottom quartile). Point 9 Sharpe: -0.48 (upper mid). Sharpe: -0.64 (lower mid). Sharpe: -0.64 (bottom quartile). Point 10 Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). ICICI Prudential Infrastructure Fund
HDFC Infrastructure Fund
Franklin Build India Fund
*Below is the list of best mutual funds based on 5 year CAGR/Annualized and AUM > 100 Crore.
  To generate capital appreciation and income distribution to unit holders by investing predominantly in equity/equity related securities of the companies belonging to the infrastructure development and balance in debt securities and money market instruments.   Research Highlights for ICICI Prudential Infrastructure Fund   Below is the key information for ICICI Prudential Infrastructure Fund   Returns up to 1 year are on   To seek long-term capital appreciation by investing predominantly in equity and equity related securities of companies engaged in or expected to benefit from growth and development of infrastructure.   Research Highlights for HDFC Infrastructure Fund   Below is the key information for HDFC Infrastructure Fund   Returns up to 1 year are on   The Scheme seeks to achieve capital appreciation by investing in companies engaged directly or indirectly in infrastructure related activities.   Research Highlights for Franklin Build India Fund   Below is the key information for Franklin Build India Fund   Returns up to 1 year are on 1. ICICI Prudential Infrastructure Fund
ICICI Prudential Infrastructure Fund 
 Growth Launch Date   31 Aug 05  NAV (28 Oct 25)   ₹200.88  ↓ -0.43   (-0.21 %)  Net Assets (Cr)   ₹7,645 on 31 Aug 25  Category  Equity - Sectoral AMC   ICICI Prudential Asset Management Company Limited  Rating  ☆☆☆ Risk  High Expense Ratio  1.89 Sharpe Ratio  -0.48 Information Ratio  0 Alpha Ratio  0 Min Investment   5,000  Min SIP Investment   100  Exit Load   0-1 Years (1%),1 Years and above(NIL)   Growth of 10,000 investment over the years. 
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹20,062 30 Sep 22 ₹22,524 30 Sep 23 ₹31,255 30 Sep 24 ₹50,301 30 Sep 25 ₹48,047  Returns for ICICI Prudential Infrastructure Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Oct 25 Duration Returns 1 Month  4.1%  3 Month  4%  6 Month  10.7%  1 Year  7.3%  3 Year  28%  5 Year  37.5%  10 Year    15 Year    Since launch  16%   Historical performance (Yearly) on absolute basis 
Year Returns 2024  27.4%  2023  44.6%  2022  28.8%  2021  50.1%  2020  3.6%  2019  2.6%  2018  -14%  2017  40.8%  2016  2%  2015  -3.4%   Fund Manager information for ICICI Prudential Infrastructure Fund 
Name Since Tenure Ihab Dalwai 3 Jun 17 8.33 Yr. Sharmila D’mello 30 Jun 22 3.26 Yr. Data below for ICICI Prudential Infrastructure Fund as on 31 Aug 25 
 Equity Sector Allocation 
Sector Value Industrials 36.47% Basic Materials 15.25% Financial Services 14.68% Utility 10.24% Energy 9.47% Real Estate 2.93% Consumer Cyclical 1.84% Communication Services 1.67%  Asset Allocation 
Asset Class Value Cash 7.43% Equity 92.57%  Top Securities Holdings / Portfolio 
Name Holding Value Quantity  Larsen & Toubro Ltd (Industrials) 
Equity, Since 30 Nov 09 | LT9% ₹674 Cr 1,843,204 
 ↓ -155,750  NTPC Ltd (Utilities) 
Equity, Since 29 Feb 16 | 5325554% ₹352 Cr 10,329,473 
 ↓ -750,000  Vedanta Ltd (Basic Materials) 
Equity, Since 31 Jul 24 | 5002954% ₹293 Cr 6,279,591  Reliance Industries Ltd (Energy) 
Equity, Since 31 Jul 23 | RELIANCE4% ₹277 Cr 2,029,725  NCC Ltd (Industrials) 
Equity, Since 31 Aug 21 | NCC3% ₹271 Cr 13,053,905  Adani Ports & Special Economic Zone Ltd (Industrials) 
Equity, Since 31 May 24 | ADANIPORTS3% ₹260 Cr 1,854,934 
 ↓ -413,725  Kalpataru Projects International Ltd (Industrials) 
Equity, Since 30 Sep 06 | KPIL3% ₹226 Cr 1,803,566  Axis Bank Ltd (Financial Services) 
Equity, Since 31 Dec 20 | 5322153% ₹226 Cr 1,996,057  AIA Engineering Ltd (Industrials) 
Equity, Since 28 Feb 21 | AIAENG3% ₹202 Cr 660,770  CESC Ltd (Utilities) 
Equity, Since 30 Jun 23 | CESC2% ₹189 Cr 11,700,502 2. HDFC Infrastructure Fund
HDFC Infrastructure Fund 
 Growth Launch Date   10 Mar 08  NAV (28 Oct 25)   ₹48.53  ↑ 0.02   (0.03 %)  Net Assets (Cr)   ₹2,483 on 31 Aug 25  Category  Equity - Sectoral AMC   HDFC Asset Management Company Limited  Rating  ☆☆☆ Risk  High Expense Ratio  2.06 Sharpe Ratio  -0.64 Information Ratio  0 Alpha Ratio  0 Min Investment   5,000  Min SIP Investment   300  Exit Load   0-1 Years (1%),1 Years and above(NIL)   Growth of 10,000 investment over the years. 
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹18,908 30 Sep 22 ₹20,652 30 Sep 23 ₹29,739 30 Sep 24 ₹46,335 30 Sep 25 ₹43,823  Returns for HDFC Infrastructure Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Oct 25 Duration Returns 1 Month  3.1%  3 Month  2.6%  6 Month  8.4%  1 Year  4.4%  3 Year  28.4%  5 Year  35%  10 Year    15 Year    Since launch     Historical performance (Yearly) on absolute basis 
Year Returns 2024  23%  2023  55.4%  2022  19.3%  2021  43.2%  2020  -7.5%  2019  -3.4%  2018  -29%  2017  43.3%  2016  -1.9%  2015  -2.5%   Fund Manager information for HDFC Infrastructure Fund 
Name Since Tenure Srinivasan Ramamurthy 12 Jan 24 1.72 Yr. Dhruv Muchhal 22 Jun 23 2.28 Yr. Data below for HDFC Infrastructure Fund as on 31 Aug 25 
 Equity Sector Allocation 
Sector Value Industrials 38.53% Financial Services 19.18% Basic Materials 10.34% Utility 7.05% Energy 6.49% Communication Services 3.63% Real Estate 2.48% Health Care 1.76% Technology 1.57% Consumer Cyclical 0.49%  Asset Allocation 
Asset Class Value Cash 8.47% Equity 91.53%  Top Securities Holdings / Portfolio 
Name Holding Value Quantity  ICICI Bank Ltd (Financial Services) 
Equity, Since 31 Oct 09 | 5321746% ₹148 Cr 1,100,000 
 ↓ -200,000  Larsen & Toubro Ltd (Industrials) 
Equity, Since 30 Jun 12 | LT6% ₹139 Cr 380,000  HDFC Bank Ltd (Financial Services) 
Equity, Since 31 Aug 23 | HDFCBANK5% ₹133 Cr 1,400,000  Kalpataru Projects International Ltd (Industrials) 
Equity, Since 31 Jan 23 | 5222874% ₹95 Cr 758,557 
 ↑ 272  J Kumar Infraprojects Ltd (Industrials) 
Equity, Since 31 Oct 15 | JKIL4% ₹89 Cr 1,403,084 
 ↑ 3,084  InterGlobe Aviation Ltd (Industrials) 
Equity, Since 31 Dec 21 | INDIGO3% ₹84 Cr 150,000  NTPC Ltd (Utilities) 
Equity, Since 31 Dec 17 | 5325553% ₹75 Cr 2,200,646 
 ↑ 646  Reliance Industries Ltd (Energy) 
Equity, Since 31 May 24 | RELIANCE3% ₹68 Cr 500,000  Bharti Airtel Ltd (Communication Services) 
Equity, Since 30 Sep 20 | BHARTIARTL3% ₹66 Cr 350,000  State Bank of India (Financial Services) 
Equity, Since 31 Mar 08 | SBIN2% ₹61 Cr 704,361 3. Franklin Build India Fund
Franklin Build India Fund 
 Growth Launch Date   4 Sep 09  NAV (28 Oct 25)   ₹146.146  ↑ 0.15   (0.11 %)  Net Assets (Cr)   ₹2,884 on 31 Aug 25  Category  Equity - Sectoral AMC   Franklin Templeton Asst Mgmt(IND)Pvt Ltd  Rating  ☆☆☆☆☆ Risk  High Expense Ratio  2.01 Sharpe Ratio  -0.64 Information Ratio  0 Alpha Ratio  0 Min Investment   5,000  Min SIP Investment   500  Exit Load   0-1 Years (1%),1 Years and above(NIL)   Growth of 10,000 investment over the years. 
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹19,616 30 Sep 22 ₹20,506 30 Sep 23 ₹28,515 30 Sep 24 ₹45,123 30 Sep 25 ₹42,883  Returns for Franklin Build India Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Oct 25 Duration Returns 1 Month  4.1%  3 Month  4.2%  6 Month  9.8%  1 Year  5.5%  3 Year  27.5%  5 Year  33.3%  10 Year    15 Year    Since launch  18.1%   Historical performance (Yearly) on absolute basis 
Year Returns 2024  27.8%  2023  51.1%  2022  11.2%  2021  45.9%  2020  5.4%  2019  6%  2018  -10.7%  2017  43.3%  2016  8.4%  2015  2.1%   Fund Manager information for Franklin Build India Fund 
Name Since Tenure Ajay Argal 18 Oct 21 3.96 Yr. Kiran Sebastian 7 Feb 22 3.65 Yr. Sandeep Manam 18 Oct 21 3.96 Yr. Data below for Franklin Build India Fund as on 31 Aug 25 
 Equity Sector Allocation 
Sector Value Industrials 35.44% Utility 14.2% Financial Services 13.18% Energy 12.89% Communication Services 7.62% Basic Materials 5.03% Real Estate 3.16% Consumer Cyclical 2.74% Technology 2.21%  Asset Allocation 
Asset Class Value Cash 3.52% Equity 96.48%  Top Securities Holdings / Portfolio 
Name Holding Value Quantity  Larsen & Toubro Ltd (Industrials) 
Equity, Since 29 Feb 20 | LT8% ₹243 Cr 665,000  InterGlobe Aviation Ltd (Industrials) 
Equity, Since 29 Feb 20 | INDIGO6% ₹176 Cr 315,000 
 ↑ 15,000  Reliance Industries Ltd (Energy) 
Equity, Since 31 Oct 21 | RELIANCE6% ₹164 Cr 1,200,000  Oil & Natural Gas Corp Ltd (Energy) 
Equity, Since 30 Jun 19 | 5003126% ₹163 Cr 6,825,000  ICICI Bank Ltd (Financial Services) 
Equity, Since 31 Mar 12 | ICICIBANK5% ₹162 Cr 1,200,000  NTPC Ltd (Utilities) 
Equity, Since 30 Nov 16 | 5325555% ₹148 Cr 4,350,000  Bharti Airtel Ltd (Communication Services) 
Equity, Since 30 Sep 09 | BHARTIARTL5% ₹133 Cr 710,000  Axis Bank Ltd (Financial Services) 
Equity, Since 31 Mar 12 | 5322154% ₹113 Cr 1,000,000  Power Grid Corp Of India Ltd (Utilities) 
Equity, Since 28 Feb 21 | 5328983% ₹101 Cr 3,600,000  GAIL (India) Ltd (Utilities) 
Equity, Since 31 Jan 25 | 5321553% ₹92 Cr 5,200,000 
 ↑ 400,000 
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