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FAQs
Subject
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Mutual Fund/ETF
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Passive Fund
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Passive Fund
Index Funds and ETFs
Date: 13 APR
Answered By: Tasis Management
Question
What are Index Funds and ETFs?
Answer
• Index Fund: A mutual fund that tracks an index and can be bought from AMC like normal mutual funds.
Example Nifty 50 Fund will have all the constituent of Nifty 50 Index with same weightages.
• ETF (Exchange Traded Fund): Also tracks an index but traded on stock exchanges like shares.
Example: If you buy a Nifty 50 ETF, you are indirectly buying small portions of all 50 companies in the Nifty 50 index — in one single transaction.
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