Stocks are financial instruments issued by companies that give investors a stake in the company. Investors park their surpluses primarily in stocks to increase capital, dividends, and voting rights, allowing them to participate in the company's most important decisions.

Mutual Funds, on the other hand, are a financial instrument in which money is mobilized from multiple investors and, depending on the investment objectives of the fund, is invested in different asset classes.

Mutual funds are professional entities that offer professional fund management capabilities and a wide selection of funds to choose from. There are 3 main categories of funds, namely equity funds, debt funds, and hybrid.