What is the difference between a mutual fund and an exchangetraded fund ETF

What is the difference between a mutual fund and an exchange-traded fund (ETF) Introduction: The Basics of Investing Hello and welcome to our video on mutual funds and exchange-traded funds (ETFs). Before we dive into the differences between these two investment options, let's start with the basics. When it comes to investing, the goal is to grow your wealth over time. While there are various investment vehicles available, mutual funds and ETFs have gained significant popularity due to their accessibility and potential for diversification. Mutual Funds: A Collective Investment Approach Mutual funds are investment vehicles that pool money from multiple investors to create a diversified portfolio of stocks, bonds, or other assets. They are managed by professional fund managers, who make investment decisions on behalf of the investors. One of the key advantages of mutual funds is their ability to offer instant diversification. By investing in a mutual fund, you essentially own a portion of the underlying assets, proportionate to your investment. This diversification helps mitigate the risk associated with investing in individual securities. Types of Mutual Funds Mutual funds come in various types, each with its own investment objective. For example, there are equity funds that primarily invest in stocks, bond funds that focus on fixed-income securities, and balanced funds that have a mix of both.