How mutual fund growth plans quietly outgrow direct stocks. (Photo source: Envato) Show Quick Read Summary is AI Generated. Newsroom Reviewed

Investing Rs 1 crore in a mutual fund’s growth option can outperform a similar investment in direct equities over time, according to chartered accountant Nitin Kaushik. In a long thread on X (formerly Twitter), he compares the two strategies over a five-year period. Through the post, he also shows that the way payouts are handled results in a huge wealth disparity.

Kaushik began his post by saying, “1 crore in stocks vs 1 crore in mutual funds. Both start the same. But 5 years later, the difference runs into lakhs.” He said the “secret” is factors like “dividends, compounding” and what he calls “the ‘hidden SIP’ effect.”

Kaushik also explain

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