ETFs compared against mutual funds for cost and diversification

Advantages of Exchange Traded Funds over Mutual Funds.

ETFs offer the following advantages over Mutual Funds:
1. Lower Fund Management Charges.
2. Eliminates duplicity or overlap of buying Stocks through different Mutual Funds.
3. Exposure to the entire Stock Market in a Country or Region through One or Two ETFs.
4. Global Exposure.
5. Easy Liquidity throughout the Year.
6. Tax implications as per Indian Tax Laws.
7. Global Diversification.
8. Benefits due to Rupee depreciation.
9. Passive Fund Management reduces Expense Ratio.
10. Follows Buy and Hold Strategy.
11. Indices Developed by Global Experts.

Related reading: limitations of ETFs explained, and index funds and ETFs explained.

Disclaimer: The content on Mungekar Wealth is for general information and educational purposes only. It is not investment, tax, legal or financial advice, and it is not a recommendation to buy, sell or hold any security, fund or other product. Investments in securities markets are subject to market risks; past performance does not guarantee future returns. Figures quoted are from published sources as of the date of writing and may have changed. Please consult a SEBI-registered investment adviser, chartered accountant or other qualified professional before making any financial decision.

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About the Author

Sameer Mungekar

Sameer Mungekar has been associated with the mutual funds industry since 2015. He holds a Commerce degree from the University of Mumbai and multiple NISM certifications: Series 5A/5C (Mutual Fund Distributor), Series 10A/10B (Investment Adviser), Series 15 (Research Analyst), and Series 17 (Retirement Adviser), along with an IRDA certificate for insurance advisory.

Advantages of Exchange Traded Funds over Mutual Funds.

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