DETAILED STUDY ON EXCHANGE TRADED FUND AND INDEX FUND

 EXCHANGE - TRADED - FUND  (ETF):-

                                                                A mutual fund scheme that invee st in securities in the same proportion as an index of securities and the units of exchange traded fund are mandatorily listed and traded on exchange. Basically exchange traded fund is such type of fund that are traded on exchange like other stock.

INDEX FUND  :-

                               A mutual fund scheme that invest in securities in the same proportion as an index of securities.

ETF and Index mutual fund are technically different but both share the same fundamental feature that both seek to replicate existing stock indices. Both ETF and Index funds are pooled investment vehicles that are passively managed. Since ETF and Index fund both are passively managed their expenses ratio will be minimum and both type of fund give similar return over long period of time.