How Are ETFs Similar to Mutual Funds?

Somatirtha

ETFs and mutual funds pool money from multiple investors.

Both invest in diversified portfolios of stocks, bonds, or other assets.

Professional managers oversee investments in both fund types.

Diversification helps reduce risk in ETFs and mutual funds.

Both are regulated to ensure transparency and protect investors.

Funds can target income, growth, or mixed investment objectives.

ETFs trade on exchanges; mutual funds use end-of-day NAV.

Both provide investors access to markets they might not reach individually.

Understanding similarities helps investors choose funds aligned with goals.

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