When building an investment portfolio, you’ll likely come across ETFs and mutual funds. While both offer diversification and professional management, they have key differences. Here’s how to choose the right one for your strategy.

What’s an ETF?

An Exchange-Traded Fund (ETF) is a basket of assets (like stocks or bonds) traded on stock exchanges, similar to individual stocks.

What’s a Mutual Fund?

A Mutual Fund pools money from multiple investors to buy a diversified portfolio, managed by professionals.

Key Differences

Which One Should You Choose?

• Choose ETFs if you want lower fees, flexibility, and tax efficiency.
• Choose Mutual Funds if you prefer professional active management and are okay with higher fees.

Conclusion:
Both are excellent tools. Your choice depends on your goals, risk tolerance, and how involved you want to be.