(i) What is the difference between Exchange Traded Fund (ETF) and other schemes of the Mutual Fund?
CS Professional · Capital Commodity and Money Market · PYQS · December 2021
(i) What is the difference between Exchange Traded Fund (ETF) and other schemes of the Mutual Fund?
Answer & Explanation:
Exchange traded funds are based on index. Such as Nifty, Sensex, bank index etc. These index comprises of fixed securities. The amount has to be invested in ETF is based on Market capitalization of these securities in the same proportionate. In other mutual funds scheme it is the decision of investment merger to buy or sell the stocks with the promoter set for the scheme.
Topics: Investment Products
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