Google Questions and Answers Top ten differences, advantages, and disadvantages of individual stocks and stock mutual funds1. A stock mutual fund is a package investment product and has many different types of stocks inside it; an individual stock represents ownership of a company2. Stock mutual funds are more diversified than a portfolio of individual stocks13. Odds are a stock mutual fund will move slower than a portfolio of individual stocks24. There is much more upside and downside potential with individual stocks than mutual funds35. You only pay taxes on the profit of an individual stock when you sell it, with mutual funds you pay taxes as you own it46. You have much more specific information for a portfolio of individual stocks than mutual funds; Stock mutual funds are required to release their holdings every three months, while individual stocks are closely monitored by financial annalists for earnings, sales, new products, and management57. With stock mutual funds you do not know why they are holding a position, with individual stocks you need to understand why you would want to buy, hold, or sell a stock. With mutual funds you place your money with a manager who does this for you. You can get very specific with your stock selection process; in a stock mutual fund most the of the analysis seems to be statistically driven8. It is more appealing to talk about ownership of an individual stock at a cocktail party, than a stock mutual fund69. Larger portfolios can integrate more individual stocks than smaller portfolios710. Individual stocks do not have an ownership cost, while stock mutual funds doSources: 1 http://www.investopedia.com/ask/answers/05/062305.asp Allaria, Joe August 2016 2 https://thecollegeinvestor.com/8220/comparing-stock-etfs-mutual-funds/ Mario Favela June 8, 20163 https://thecollegeinvestor.com/8220/comparing-stock-etfs-mutual-funds/ Mario Favela June 8, 2016 4 https://www.forbes.com/sites/robrussell/2013/12/09/mutual-funds-or-stocks-which-is-better-for-you/#afd2a6811b1d Rob Russell December 9, 2013 5 https://www.fool.com/investing/general/2015/07/17/stocks-mutual-funds-or-etfs-how-should-you-invest.aspx Matthew Frankel July 17, 2015 6 https://www.forbes.com/sites/robrussell/2013/12/09/mutual-funds-or-stocks-which-is-better-for-you/#afd2a6811b1d Rob Russell December 9, 2013 7 http://www.aaii.com/journal/article/how-many-stocks-do-you-need-to-be-diversified-.touch Daniel j. Burnside July 2004Disclosers: Securities offered through American Portfolios Financial Services, Inc. (APFS) Member FINRA /SIPC. Investment Advisory Services offered through Wealth Management Institute a Registered Investment Advisor. Wealth Management Institute is not affiliated with APFS.Any opinions expressed in this forum are not the opinion or view of American Portfolios Financial Services, Inc. (APFS) or American Portfolios Advisors, Inc. (APA) and have not been reviewed by the firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgement prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principle. Past performance does not guarantee future results. Investments are not suitable for all types of investors.