ETF

Mutual Fund Vs ETF

Wanna Trade

Yes - ETF

No - Compare MF Vs ETF

Flexibility

ETF - Real Time market price

MF - Per Day market price

How does it matter, if it is long term investment. What is the difference in time taken for credit of redemption?

Fees and Expenses

ETF - Passive Management, Low expense

MF - Active Management, Higher expense

Commissions

ETF - Traded as shares, investor need to pay commission for sale and purchase

MF - Investor need not pay commission for sale and purchase

How does it matter, MF pays commission for sale and purchase of stocks under MF

Tax Benefits

ETF - Incur capital gains tax only when you sell them

MF - Incur capital gains tax as shares within MF gets traded during life of investment

ETF could benefit for long term goals

Return

ETF - Index returns

MF - Good actively managed fund is expected to beat Index return

Index MF - Index returns

Should you buy ETF?

> Looking for Long term active fund returns - No

> Looking for Index fund returns - Yes

Think About:

> Would you invest in small cap index fund\ETF Vs small cap fund?

> Would you invest in large cap index fund\ETF Vs large cap fund?

> Which assets require active management Vs which assets are fine with passive management