etf = mf?

#1
Does that equation fit?
An etf is actually a mutual fund?

I have been browising some websites to find out and I think it is actually true!
To substantiate, SBI GETS (gold etf) shows up on the SBI mutual funds website!

But I read in quite a few magazines and some papers that one needs to have a trading account in order to buy etfs. But since they are the same as mutual funds, can one also buy them the way we buy a mutual fund policy?
 

rvm123

Active Member
#3
etf's are like shares. they can be bought at market price (not at NAV's). Market price may be equal or more or less compared to NAV. Like shares, demat account is necessary and commission, etc needs to be paid. ETF's can be bought in multiple number of Units only; MF's can be bought in fraction of units, say for Rs.5000/-, etc.
 
#6
yes etf is nothing but shemes listed by mutualfunds in stockexchanges which are allowed to be traded at market price which will be nearly in line with nav with brokerage to be paid to ur broker only difference is v can buy even one unit from stockmarket,where as sip for atleast for 12 months of course with no entry load or dmat account u can buy from AMcs if u are a long time investor only these schemes are profitable if u are a swing trader or day trader forget about ETFs since they are most illiqiud
 

rvm123

Active Member
#7
If I am correct, most of the ETF's are fund of funds, which will invest in funds investing in gold, silver, etc. So the handling charges will be little higher.
 

praveen98

Well-Known Member
#8
Does that equation fit?
An etf is actually a mutual fund?

I have been browising some websites to find out and I think it is actually true!
To substantiate, SBI GETS (gold etf) shows up on the SBI mutual funds website!

But I read in quite a few magazines and some papers that one needs to have a trading account in order to buy etfs. But since they are the same as mutual funds, can one also buy them the way we buy a mutual fund policy?
hi,
Mutual fund and ETF both will be managed by respective Asset Management company like Benchmark and other mutual fund houses....But there is a difference in the nature of management...mutual fund schemes are actively managed by fund managers and ETF is a passive fund management....For example uti large cap fund is an actively managed fund means weightage of investment and individual stocks is at the discretion of fundmanager where as Niftybees managed by benchmark the funds will be allocated in the same as per the index weightages and in those 50 stocks only....so no active or discretionary decision making on behalf of fund manager ( passive fund management )
So ETF is a different kind of mutual fund....your equation is right!!!
all the best:clap:
 

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