what is the difference between regular mutual funds and ETF?
2007-04-29 18:35:12 · 2 answers · asked by rohit a 1 in Business & Finance ➔ Investing
BANKEX tracks the banking stocks. Each banking stocks have their own weightage in BANKEX.
The major difference between Mutual Funds and ETFs are that ETFs (Exchange Traded funds as the name suggests) are tradable in the exchange while Mutual Funds are not. It means you can sell the units acquired under ETFs directly through exchange without any lock-in period and you pay your regular charges for selling. Also another significant difference is that for Mutual Funds you dont need an DEMAT whereas you need to compulsorily have an DEMAT for ETFs
2007-04-29 19:39:27 · answer #1 · answered by Jatin Shah 2 · 0⤊ 0⤋
Bankex is an index of few banking scrips and depicts changes in banking industry- stock pricewise.
ETF is a mutual fund unit which you can easily trade (buy / sell) on the exchanges whereas in mutual fund units ( not ETF) you need to buy and sell units to the fund managers as per the NAV ( net asset value) declared by the mutual fund.
2007-04-30 03:29:55 · answer #2 · answered by Nitin G 7 · 0⤊ 0⤋