Xfundz Investment Services

In today’s investment world, two popular choices dominate the conversation — Exchange Traded Funds (ETFs) and actively managed mutual funds. Both have their strengths, but if you are a retail investor aiming for steady long-term growth, understanding the difference is crucial. What are ETFs? ETFs are investment funds traded on stock exchanges, much like individual stocks. They typically track an index such as the Nifty 50 or Sensex. This means they passively mirror the performance of the underlying index without a fund manager actively picking stocks. Advantages of ETFs Low Costs: ETFs usually have lower expense ratios compared to active funds. Liquidity: You can buy and sell ETFs anytime during market hours. Transparency: Holdings are published daily. Limitations of ETFs They follow the market — so if the market is down, your ETF is also down. Less potential to outperform, since they are not actively managed. What are Actively Managed Mut...