where it's better to invest in mutual funds or stock market?

Mutual funds are safer. They invest in lots of different stocks, bonds etc. And they have a mutual fund manager who is paid to research investments.

More can be made in individual stocks, but more can also be lost.

I take about 80% of my investable cash and invest in mutual funds... The other 20% I play with individual stocks. I usually stick with large well established companies like Intel, Cisco, etc.

You should ask yourself what's your risk appetite is. Mostly, Mutual Fund and stock market are almost the same things. Most Mutual Funds take your money and have fund managers to invests them in the stock market. While investing stock market is investing by yourself. Mutual Funds are generally have lower returns. But thats because they tend to be more risk averse when investing other people's money (they have a reputation to uphold).

If you have a deep interest in learning stock market i suggest putting your money into something safe first while you learn to trade the stock market by yourself (open a practice account). as you gain confidence, then you should start trading with your money. I generally dont like mutual funds because of their trading practices/philosophy. I much rather trade the stock market myself.

It is quite simple really:

If you are willing to become knowledgeable about the stock market and to devote much time keeping informed and buying and selling and keeping good records etc, buy shares.

If you want relative peace of mind and avoidance of great risks and having an expert to do the work for you, buy mutual funds. But bear in mind that over time, their charges will come to quite a big slice of the value of your fund.Typically 30% after 35 years. Even then, I think they are worth it.

Stock market - do the work yourself instead of handing over cash to funds to get poor returns.

What do you think a mutual fund really is? Stick your $ in bonds, a 5% online savings account, an IRA and chill out.

Stocks.

If you don't know the answer to that, I'd advise you to learn a lot more before you invest.

Consider, also, "exchange traded funds"---they are a way of diversifying at low cost. Example: SPY