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ETF or Mutual Funds: Know which one best fits your financial goals


Published on 2025-01-13 10:21:02 - cnbctv18
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  • While both mutual funds and ETF offer the benefits of diversification and professional management, understanding their key differences can help you determine which aligns better with your financial goals.

The article from CNBC TV18 discusses the differences between Exchange Traded Funds (ETFs) and Mutual Funds, helping investors decide which investment vehicle best suits their financial goals. ETFs are highlighted for their lower expense ratios, tax efficiency, and the ability to trade like stocks throughout the trading day, offering flexibility and potentially lower costs. They track an index and are passively managed, which generally results in lower management fees. On the other hand, mutual funds can be actively or passively managed, offering a broader range of investment options including sector-specific or thematic funds. They are priced once at the end of the trading day, which might suit investors looking for less frequent trading. The article suggests that ETFs might be preferable for those seeking cost efficiency and market tracking, while mutual funds could be better for investors interested in active management, diversification across various asset classes, or those who prefer a more hands-off approach with regular investments like SIPs (Systematic Investment Plans). The choice depends on factors like investment horizon, risk tolerance, liquidity needs, and the investor's involvement in managing their portfolio.

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[ https://www.cnbctv18.com/personal-finance/etf-or-mutual-funds-know-which-one-best-fits-your-financial-goals-19539445.htm ]