Equity has been proved to be the most secure investment among both of the options of Mutual fund and ETFs.
Mutual Fund holds the concept of getting a pool of investment through many individuals/investors and financial institutions. Also Asset Management Company invest in the sector of securities capital and money market.These concentrated funds are then manged by fund managers on behalf of the unit holders of each investment.
Whereas, Exchange Traded Fund is a type of index fund runs with the similar to mutual fund investments however they are traded in stock exchange.It acts as a mechanism to trace index like Nifty or Sensex. ETF is a collective portfolio that tracks the index and listed and henceforth listed and traded in market.
Some highlights of difference between the mutual fund and ETFs are;
Mutual Fund is purely a trade however ETFs trade is intra-day,
One can save their expenses through ETFs than mutual fund,
Mutual fund can be issued as fraction but ETF cannot be traded in terms of fraction.