Algae and fungi live in aquatic habitat. They have thallus and there is no differentiation of leaves and roots. Mitospores are the main methods of asexual reproduction. There is no gametic union and sex organs are single celled and uncovered
Fungi require organic matter for their survival. They do not have chlorophyll and can be found in water or land. While algae are found in aquatic conditions, have chlorophyll and occur freely. Fungi have heterotrophic mode of nutrition and occur in darker places. Their cell wall is made up of chitin. Algae are autotrophic, occur in lighted areas with their cell wall made of cellulose. In fungi food is stored in the form of glycogen and motile spores are rarely found. An alga has food stored in the form of starch and there is presence of motile spores and gametes. In fungi there is an intermediate phase between plasmogamy and karyogamy. The sexuality decreases with increasing advancement of fungi. However, in algae plasmogamy and karyogamy occur simultaneously. There is increase in sexuality with advancement of algae.