While there are various kinds of investment tools available in the market, investment in ETFs is something that we come across often. In many aspects, Exchange Traded Funds (ETF) are quite similar to mutual funds, nonetheless, also quite different.
Both ETFs and mutual funds are types of pooled funds. Investors contribute their money and create a corpus, which is then re-invested in assets and securities. Having said that, there is a major difference between these two securities in the way they are traded and so is their tax treatment.
