Mutual Fund vs. ETF
What’s the Difference
Understand which investment suits you better!
Understand which investment suits you better!
What is a Mutual Fund?
What is a Mutual Fund?
A mutual fund pools money from multiple investors to invest in a diversified portfolio of assets. Managed by professionals.
A mutual fund pools money from multiple investors to invest in a diversified portfolio of assets. Managed by professionals.
What is an ETF?
What is an ETF?
An Exchange Traded Fund (ETF) is similar to a mutual fund but trades like a stock on an exchange.
An Exchange Traded Fund (ETF) is similar to a mutual fund but trades like a stock on an exchange.
Key Similarities
– Diversified investments
– Diversified investments
– Include stocks, bonds, and other assets
– Include stocks, bonds, and other assets
– Ideal for long-term wealth building
– Ideal for long-term wealth building
Key Differences - Management
Key Differences - Management
Mutual Funds: Actively managed
Mutual Funds: Actively managed
ETFs: Mostly passively managed
ETFs: Mostly passively managed
Key Differences – Trading
Key Differences – Trading
Mutual Funds: Priced once at the end of the day
Mutual Funds: Priced once at the end of the day
ETFs: Traded throughout the day like stocks
ETFs: Traded throughout the day like stocks
Key Differences – Fees
Key Differences – Fees
ETFs: Lower expense ratios
ETFs: Lower expense ratios
Mutual Funds: Higher fees for active management
Mutual Funds: Higher fees for active management
Key Differences – Minimum Investment
Key Differences – Minimum Investment
Mutual Funds: May require a higher minimum
Mutual Funds: May require a higher minimum
ETFs: You can buy 1 share
ETFs: You can buy 1 share
Which One Should You Choose?
Which One Should You Choose?
Choose Mutual Funds for hands-off, guided investing
Choose Mutual Funds for hands-off, guided investing
Choose ETFs for flexibility and lower costs
Choose ETFs for flexibility and lower costs
Final Thoughts
Both can help grow your wealth. Your choice depends on goals, risk, and strategy!
Both can help grow your wealth.
Your choice depends on goals, risk, and strategy!