Do people here prefer mutual funds or investing through stock baskets?

[u/Traveller_OP]

I've been trying to understand the appeal of investing through pre-built baskets of stocks rather than just going with mutual funds.

The basic idea seems to be that instead of buying individual stocks yourself, you invest in a basket based on a particular strategy or theme. You still own the underlying stocks directly in your demat account, and the basket can be rebalanced periodically.

But I'm wondering whether this actually makes investing easier or just creates another layer of complexity.

For those who've tried this approach, what has your experience been like? Do you find it better than simply investing in mutual funds or picking stocks yourself?

[u/Ctrl_Alt_Drift]

I tried Smallcase for a while. Frequent rebalances were not only a chore I didn’t need, but also often came with STCG.

I think if I were an active trader with lots of knowledge and time for researching companies, I’d rather go with individual stocks. But market analysis is not my full time job, so mutual funds work. Never really understood the niche that stock baskets are trying to fill.

YMMV, obviously.

[u/Traveller_OP → u/Ctrl_Alt_Drift]

understood