Todays Scenario Mutual fund is better or buying equity, which option to select?

The first thing you must do is define your goals. Then find the right investment that will help you accomplish your goals. Once you make that investment, stick with it.

you should opt for close ended and with divident payment option.

Given a choice I would invest some money in Mutual Funds as well as some in Equity. Go for close ended, dividend payout option in Mutual Funds & in equity go for some top A listed co's such as Tata, Infosys, Wipro etc.

My dear friend. In one respect stocks are no different from stock mutual funds, the only way to benefit from them is to keep owning them. This requires a strong will power. If you are scared of flutuations or volatility in the market investing in mutual funds are not going to solve your problem.

If you are a keen observer of stocks then you may find that sometimes even the best performing funds may decline sometimes more than the index or stocks it tracks during a correction or a pull back.

To stay benefited in a comeback you must stay invested.If you cannot take a 65 % decline in your mutual funds in the short run (Saudi Markets) , recent chinese market correction of 21% as of today morning which later recovered much more , you may want to consider investing in balanced mutual funds, but of course here there is an intrest rate risk where your bonds part of the portfolio will drop as the intrest rates increase in any case the returns you will get at the end of 10 years are going to befar less than what you would have obtained had you gone in for an all equity portfolio.

Another question to ask is which mutual fund should I invest in? Since majoity of the mutual funds are now closet index trackers you tend to do better if you put money in index funds since you save on the loads.

It depends on your profile. In MF you do not have to keep track of your investments on a daily basis. You have dedicated fund managers to do it on your behalf. In buying equity you yourself are the fund manager. You should be aware of evevnts of every stock you own in your portfolio. In case you have time energy and resources to do so invest yourself, else outsource that function to fund managers of MF.