A mutual fund can invest in equities too, it is then called an equity mutual fund. It is better than a trade because:
- A professional manages it. Not everyone can pick equities and ‘trade;
- Better for long term to build wealth
- Less volatile as horizon is longer. Trades are very short term focused
- Less riskier for the above reasons. Traders are known to lose (and sometimes gain) huge amounts on a single day.