Passive Investments
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Letters to Editor, MF - Letter to Editor, Mutual Fund



Your cover story on passive investments was quite interesting.
Your cover story on passive investments was quite interesting. However, my question is about which one to opt for: index funds or exchange traded funds (ETFs)? - Neha Rathod
Editor Responds : Passive investments are gaining traction as can be witnessed from the rising inflows and assets under management (AUM). However, choosing between index funds and ETFs, you need to ask yourself whether you have a demat account? Do the ETFs that you wish to purchase have enough volume? Are you comfortable placing buy and sell orders on the trading platform? If your answer to these questions is yes, then invest in ETFs, else go with index funds.