ETF or Mutual Fund

in LeoFinance3 days ago

A lot of people have a confusion on where to invest, in Mutual Fund or in ETF. Now think about a scenario where you wake up one morning and see market has gone down significantly. What will you do, try to safeguard your capital by selling the investment. But the problem is Mutual Fund doesn't allow you to sell instantly whereas in ETF you can sell instantly and thus you can safeguard some part of your capital.

Now people might argue that Mutual Fund is best for long term as it doesn't allow you to sell and that's actually a good thing. And that's why there is a reason on where to invest ETF or Mutual Fund. If someone wants to take longterm wealth, better go for Mutual Fund using Systematic Investment Plan. If you want to take advantage of daily price movement then better go for ETF.

Like for example, I have been investing in Mutual Fund from the last 8 years using the Systematic Investmnet Plan and accumulating the units. And then I have started investing in ETF also by creating the ETF shop. So I am taking the best of both world. But if you are someone who doesn't have the time to maintain the shop or want to do buying and selling, for you best is to do the Mutual Fund.

Both have its pros and cons, you can check that in my video. And it is upto you to decide which one you will choose for your investment journey. You can choose both if you like to take the advantage of both world. Like when yhe market was going down crazy, I was investing in Nifty 50 ETF whenever the it was going doen by more than 1%. And that's actually tough to do in the Mutual fund.

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