For investors looking to invest in stocks of different companies, exchange-traded funds (ETFs) and mutual funds are two prominent investment avenues. Their potential can be gauged from the fact that both have witnessed significant growth in assets under management (AUM) over the years.
While the AUM of ETFs has seen a five-fold increase since 2018, the AUM of mutual funds has surged by more than six-fold in 10 years from July 2013 to July 2023.
While ETFs and mutual funds share some similarities, they have prominent differences. Understanding them will help you make intelligent investment decisions and achieve your goals. So, what are these? Let’s find out.
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