Mutual Fund vs. ETF

What’s the Difference

Understand which investment suits you better!

What is a Mutual Fund?

A mutual fund pools money from multiple investors to invest in a diversified portfolio of assets. Managed by professionals.

What is an ETF?

An Exchange Traded Fund (ETF) is similar to a mutual fund but trades like a stock on an exchange.

Key Similarities

– Diversified investments

– Include stocks, bonds, and other assets

– Ideal for long-term wealth building

Key Differences - Management

Mutual Funds: Actively managed

ETFs: Mostly passively managed

Key Differences – Trading

Mutual Funds: Priced once at the end of the day

ETFs: Traded throughout the day like stocks

Key Differences – Fees

ETFs: Lower expense ratios

Mutual Funds: Higher fees for active management

Key Differences – Minimum Investment

Mutual Funds: May require a higher minimum

ETFs: You can buy 1 share

Which One Should You Choose?

Choose Mutual Funds for hands-off, guided investing

Choose ETFs for flexibility and lower costs

Final Thoughts

Both can help grow your wealth. Your choice depends on goals, risk, and strategy!