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What is ETF

Mutual funds are funds when lots of people give their saving to other companies. Now these companies have team of experts who are masters in investing that money in Stocks and that we get benefit out of the profit.

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What is ETF

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  1. Academy of TradingWhat is ETF?https://www.academyoftrading.in/what-is-etf-and-should-you-invest-in-etf /

  2. Mutual funds are created when a group of people pool their savings and invest them in another company. Now, these businesses have a team of professionals who are experts at investing capital in stocks so that we can benefit from the profits.So, what exactly are Index Funds? Index funds are similar to mutual funds, with the exception that they do not hire a team of analysts and instead invest our money directly in index like Nifty, Sensex.https://www.academyoftrading.in/what-is-etf-and-should-you-invest-in-etf /

  3. But now we know what ETFs are, right? Keep in mind that 99 percent of ETFs are only called Index Funds. They're more akin to index funds. What is the difference between ETFs and Index Funds, if ETFs are similar to Index Funds? Let's look at the differences:https://www.academyoftrading.in/what-is-etf-and-should-you-invest-in-etf /

  4. 1) ETFs are mutual funds that can only be purchased on stock exchanges such as the Sensex or Nifty. Mutual funds, on the other hand, are purchased from mutual fund firms.2) If you invest money in mutual funds, you get units in return from the firm, while with ETFs, you can only buy shares when someone else is selling them, hence the term Exchange Traded Fund.The AdvantagesETFs have a lower expense ratio than mutual funds, so they are less expensive.Instant Diversification- Today, there are hundreds of ETF options available, including large cap, mid cap, and small cap ETFs, as well as foreign and country-specific ETFs.Liquidity- It is not limited to a fixed time period; we can trade at any time.As opposed to mutual funds, ETF investors have more discretion over when they pay taxes.https://www.academyoftrading.in/what-is-etf-and-should-you-invest-in-etf /

  5. Disadvantages: Can be purchased in small quantitiesOver Diversification- ETFs are usually not actively controlled and instead track a particular index.Lack of Rebalancing-You may own overpriced stocks as a result of stock price declines and a smaller percentage of the Index.As a result, as an investor, you can gain exposure to a particular industry. It has its own set of benefits and drawbacks, so keep an eye on things and stay informed about what's going on in the industry. I hope you enjoy and learn something from this post.https://www.academyoftrading.in/what-is-etf-and-should-you-invest-in-etf /

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