ETFs vs Mutual Funds: Understanding the Key Differences
Investors often find themselves confused when it comes to differentiating between Exchange-Traded Funds (ETFs) and Mutual Funds (MFs). In this blog post, we will delve into the disparities between ETFs and MFs, shedding light on their types and associated charges.
Exchange-Traded Funds are investment instruments traded on stock exchanges, designed to replicate the performance of a specific index. One of the notable advantages of ETFs is that they do not have a minimum initial capital requirement, allowing investors to enter the market with any amount they are comfortable with. Additionally, ETFs can be bought and sold like stocks, and investors have the flexibility to define the quantity they wish to purchase.