What are the benefits of ETFs over traditional mutual fund schemes?
| Feature | ETFs | Securities | Traditional Mutual Fund |
|---|---|---|---|
Real time trading and pricing during market hours | Yes | Yes | No |
Convenience of putting limit orders | Yes | Yes | No |
Ability to be traded real time on the Stock Exchange | Yes | Yes | No |
Arbitrage between Futures and Cash Market | Yes | Yes | No |
Diversification possible with a single unit | Yes | No | Yes |
Returns in sync with the market/ benchmark index | Yes* | No | No |
Chance to trade intraday (buy and sell the same day) | Yes | Yes | No |
Exit Load | No | No | Yes |
*Returns are subject to Tracking Error