7 Key differences between ETFs  & Mutual Funds

 1.Trading Time Frequency

We can buy Mutual funds trade only one time in a day, while in ETFs we can do the trade can do multiple times.

2. Trading Mechanism

Mutual funds use day-end NAV prices, while ETFs offer real-time pricing like stocks, providing more flexibility.

3. Costs

ETFs are cheaper due to passive management, mimicking an index. Actively managed mutual funds typically have higher expenses.

4. Tax Implications (In India)

Mutual funds'& ETFs, like stocks are taxed based on a 12-month holding period.

5. Intraday Trading and Liquidity

ETFs allow intraday trading and offer high liquidity, suitable for active traders. Mutual funds lack intraday trading, potentially limiting liquidity.

6. Minimum Investment

Both are fine with small investments, Just Like You can invest Rs.500 in MF and same is the case for ETF also.

7. Transparency

ETFs disclose their portfolio daily, ensuring investors are well-informed about holdings and understand exposure to stocks or sectors.