Can one trade in mutual funds like stocks?

Can we buy mutual funds in the running markets like the way we buy stocks? Also, will it be advisable to buy them now?
- Shreekant

One should not buy mutual funds for trading. More so, you shouldn't buy stocks only to participate in the running markets. Choose equity funds with a perspective of investing only your long-term money. On the other hand, when it comes to investing in shares, aim to invest only in good-quality stocks in the long term.

Many people tend to trade when the markets are running. However, it may not be suitable for retail investors. It's very difficult to benefit from such situations, especially now when the markets tend to surprise us - either in the form of dramatic upside or downfalls - when we least expect them to.

To benefit from investing either in stocks or funds, aim to diversify and spread your long-term money. Don't try to benefit from short-term market movements.

This article was originally published on March 31, 2020.