1. Index funds are open-ended mutual fund schemes whereas ETFs are funds traded on stock exchanges.
2. Index funds can be invested in physical format or in demat format whereas ETFs require: demat account For Investment,
3.SIP investments are possible index funds But not in ETFs.
4.An index fund gets one NAV at the end of the day, but the cost of one ETFs Changes in real time with market conditions.
5. Index funds tend to have higher expense ratios than ETFs, but ETFs also have transaction costs associated with both buying and selling.
Content on this page is courtesy of Center for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
2. Index funds can be invested in physical format or in demat format whereas ETFs require: demat account For Investment,
3.SIP investments are possible index funds But not in ETFs.
4.An index fund gets one NAV at the end of the day, but the cost of one ETFs Changes in real time with market conditions.
5. Index funds tend to have higher expense ratios than ETFs, but ETFs also have transaction costs associated with both buying and selling.
Content on this page is courtesy of Center for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.