anuragmukherjee28
Moderator
this table will help you to decide wheter ETF or Mutual Fund is better for you :-
CONCLUSION
The best investment for you will depend on your individual circumstances and investment goals. If you are looking for a low-cost, transparent, and tax-efficient investment, then an ETF may be a good option for you. If you are looking for professional management and access to a wider range of investments, then a mutual fund may be a better choice.
| Feature | ETF | Mutual Fund |
| Trading | ETFs trade like stocks on an exchange, allowing investors to buy and sell them throughout the day at market prices. | Mutual funds are priced at the end of each trading day, and investors can only buy and sell them at that price. |
| Management | ETFs are passively managed, meaning that they track a specific index or market segment. | Mutual funds can be either passively or actively managed. Passively managed mutual funds track an index, while actively managed mutual funds are managed by a fund manager who attempts to outperform the market. |
| Transparency | ETFs are highly transparent, as they must disclose their holdings on a daily basis. | Mutual funds are less transparent, as they are not required to disclose their holdings as frequently. |
| Tax efficiency | ETFs are generally more tax-efficient than mutual funds, as they generate fewer capital gains distributions. | Mutual funds can generate more capital gains distributions, which can be taxable to investors. |
| Fees | ETFs typically have lower fees than mutual funds. | Mutual funds can have a variety of fees, including management fees, expense ratios, and load fees. |
| Minimum investment | ETFs typically do not have a minimum investment requirement. | Mutual funds may have a minimum investment requirement. |
| Liquidity | ETFs are generally more liquid than mutual funds, as they trade on an exchange. | Mutual funds can be less liquid, as they are not traded on an exchange. |
| where to redem | stock market or AMC | AMC |
| Intraday | possible | not possible |
| 12-b-1 fees | max 0.7% | max 1% |
CONCLUSION
The best investment for you will depend on your individual circumstances and investment goals. If you are looking for a low-cost, transparent, and tax-efficient investment, then an ETF may be a good option for you. If you are looking for professional management and access to a wider range of investments, then a mutual fund may be a better choice.
