Wednesday, 4 April 2018

Mutual Fund vs ETF(Exchange Traded Fund)

Mutual fund

People combine there money for investment in stocks(Shares, Bonds, Debenture etc.) which is done by professional that Pool of money is called mutual fund.

Creation            Mutual fund is created by anyone who qualify the regulatory requirements

Charges             Maintenance charges, Operational charges etc.

Initial margin     Initial margin required but not so much like ₹500

SIP                     Here you can make SIP(Systematic Investment Plan) it makes habit of investment

Listed               It is not listed on stock exchange

Counseling      Mutual fund professional provide counseling for best investment

NAV                 Net asset value is calculated end of the day 

ETF(Exchange Traded Fund)

Exchange traded fund are fund which are listed in stock exchange. It can be Gold ETF's, Index ETF's,  and many more.
Basically it is started for trading in Index.

Creation              ETF's are created Authorized Participants(AP's) They have high degree of buying                                power

Charges               Charges are very low than Mutual fund

Initial margin       No initial margin required

SIP                       There us no any such type of SIP

Listed                   It is listed on stock exchange 

Counseling           No one provide counseling here  

Value                    Value shows just like Stocks value  



   

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