Why would anyone buy a mutual fund vs. an ETF?

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  • Why would anyone buy a mutual fund vs. an ETF?


Answer #1 | 22/12 2013 00:47
a saving account is better a lot of companies will stop paying any dividend in the future, therefor investing in mutual funds and in etf will show an exact value of the market
Answer #2 | 22/12 2013 05:19
I am a proponent of ETF's, if for no other reason than lower management fees. As long as there are stockbrokers, there will be "load" mutual funds. Broker receive upfront sales commission and then "trail", a piece of the action for every year the investor continues to own those shares. There will always be investors who feel "inadequate" in managing their money, and rightly so. They will turn to advisors, including stockbrokers, for help in picking stocks, bonds, mutual funds, etc. The advent of on-line trading, companies like Fidelity and Vanguard, ETF's, and the wealth of info on the internet are some of the reasons I think stockbrokers will have a much tougher time making a living in the future.
Answer #3 | 22/12 2013 05:06
Your question is short on specifics. I'd like to see exactly which ETF's are returning over 100%. The structure of an ETF versus a mutual fund has nothing to do with the ability to produce a return, and most mutual funds have an ETF counterpart these days. The explosion of ETF's has resulted in some ridiculous ETF's that are high risk and built on very shaky reasoning, they aren't quite as risky as penny stocks but some approach that. If you want a 100% return, be prepared to take a 100% loss.
Answer #4 | 22/12 2013 05:41
An ETF just tracks its underlying, so it cannot outperform. A selective, managed fund should , at least, be able to beat the market and hence beat an ETF. I am not sure you understand MFs and ETFs
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Answer #5 | 22/12 2013 10:32
The ETF's that you're looking at are extremely speculative - Bear 3x Gold ETF- and can lose 100% just as quick.
Answer #6 | 23/12 2013 21:41
Well, I would suggest you to consult a tax advisor or financial planner expert before making any investments in mutual funds or etf. What best it could be than a well known mutual fund company like Birla Sun life. I myself have a plan in the same company.
Answer #7 | 22/12 2013 21:14
I would prefer to invest in Mutual fund compare to ETF , ETF is one time of commodity so i would prefer to avoid it

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