A beginner is better off investing in mutual funds because of the following reasons:
- You can invest with small amounts, as low as Rs 500
- They are managed professionally by a fund manager for a low cost
- Direct Plans get you lowest cost as no broker commission is involved
- Can withdraw anytime you want to (open ended)
- Can invest systemically through SIPs. Read Ram Medury’s answer to What is the best site or app for investing in direct mutual funds through SIP?