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 feesAdd to favorites