Ultimately, deciding between stocks versus mutual funds comes down to your investment goals and risk tolerance. Here are the key features of stocks and mutual funds to help you decide which investment may be right for you.

Stocks can offer larger potential returns than mutual funds and are easier to trade, but there are risks and drawbacks to consider.

Con: Large potential losses: Higher potential rewards come with higher potential losses if share prices drop and don't recover.

Mutual funds can bring instant diversification and stability to your portfolio, but they may not be suitable for every investor.

Con: Sales loads: Front-end and back-end sales loads (fees you pay when you buy and sell mutual fund shares) can be as much as 8.5% of the amount you invest, putting you in the red from the get-go.

Source: Time.com