ETF/ Mutual funds/ Index Funds

šŸ¤ Help
1

Hi there! This may be a dumb question but I really canā€™t find the answer. How do I know that the share that Iā€™m intrested in is a Mutual fund or Index Fund or just an normal ETF? Like what do I need to look for? I really struggle with understanding this. Thank you for your help so far guys!

2

ETF = Index fund. Mutual funds arenā€™t available on T212 platform. Nowadays I prefer ETFs over mutual funds (I own one from years ago elsewhere). ETFs are more flexible to trade.

3

An ETF is not an index fund. It is an exchange traded Fund. Can be active or passive. Can track an index or a strategic investment plan by the ETF issuer.

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4

Read this:

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5

ETF

  • Trades on an exchange like a normal stock.
  • Can be bought throughout the trading day.
  • Taxation and management fees usually lower.
  • Bought through a broker.
  • Disclose closings in real time (except for new type of ETFs which are ā€˜non-transparentā€™).

Mutual fund

  • Can only be bought/sold end of trading day at NAV.
  • Bought through limited range of brokers or the fund manager itself.
  • Sometimes have high minimum investment requirements.
  • Disclose closings usually quarterly.

Basically, ETFs are more flexible while (passive) mutual funds can be less of a hassle (you can reach out to fund manager for support/service). Iā€™d do some google searches for more info - thereā€™s tons of material on this. Good luck!

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6

Thank you! It is so much to learn about this stock market world that gets really confusing sometimesā€¦

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