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What is the difference between an ETF and a MF? What are its pros and cons? Suresh Sadagopan answers
An ETF is a passive investment product that tracks an underlying asset or index. Unlike mutual funds, ETFs are traded on exchanges throughout the day, resulting in fluctuating Net Asset Values (NAV). ETFs offer diversification and come at a low cost due to their passive nature. They are available in various forms, including equity, gold, silver, and debt-oriented products. However, liquidity can be a concern in some ETF categories.