Mutual funds >> Individual stocks
So yeah:
Over the past 2 years of investing experience, I have always noticed that a person who individually picks stocks can never ever beat the index by a good margin.
We have been told mutual funds charge hefty fees, the loads, etc. I agree with them; let's just take an example of the last 10 years of UBL Stock Advantage Fund. The KSE-100 return was 350% and USF's return was 402%, so if they take a 4% management fee, then what's wrong with it?
Many financial gurus promote individual stock picking for their content and advisory services so that people buy their masterclass courses, but in the long run, mutual funds have always performed better in Pakistan. From 2010, the KSE-100 return is 14% annually and USF's is 18%.
Not just USF, many others like Atlas Asset Management, Alfalah, HBL, and MCB have also outperformed the index by a huge margin, and a person shouldn't mind paying some fee.
I am not a promoter of anything; this is just my opinion for new investors that they should get out of the loop of individual stock picking and forget the opportunity cost. After all, we all are here to maximize our returns, not investing to be cool and aesthetic.
PS: In a Sahulat account, there aren't loads, and in a normal account, you can get rid of it too by calling the helpline :)
HAPPY INVESTING!!