an etf ( exchange traded fund ) is basically comprises of a basket / combination of stocks / other instruments and it’s value fluctuates through the trading day as it is bought and sold.

a mutual fund is also comprised of a combination of stocks and / or other instruments

the main difference between the two – the mutual fund has a fixed value throughout the trading day – called the nav – net asset value . nav is calculated at the end of trading day by the mutual fund – based on the purchases and sales done during the day.

what are index funds ?

index funds mimic the stock market indices – they move up or down in real time – they are passive investments – meaning – no active fund managers – less fees

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