<h1>Investment Guide Explains Key Differences Between Mutual Funds and Stocks for New Investors</h1> An investment guide compares mutual funds and stocks for beginners. Mutual funds pool investor money into diversified portfolios managed by professionals, offering automatic diversification and reduced risk but with expense ratios. Stocks provide direct company ownership with potentially higher returns but require individual research and carry greater volatility. Key differences include management approach, diversification levels, risk-return profiles, and associated costs. The analysis suggests beginners consider systematic investment plans for disciplined investing habits. Investment choice depends on individual risk tolerance, financial goals, and desired involvement level. The guide recommends using compound interest calculators and consulting financial advisors before making investment decisions.