The following are the main advantages of exchange-traded funds (ETFs) over conventional mutual fund schemes:

1. Reduced Cost Compared to mutual funds, ratio ETFs typically have substantially lower management fees.
   You save money because the fund manager isn’t trying to outperform the market.
2. Real-Time Trading ETFs, like stocks, can be purchased or sold at any time during business hours.
   Only at the end-of-day NAV do mutual funds execute.
   ?
3. Greater Transparency: ETF portfolios are made public every day, allowing you to always be aware of your holdings.
   Usually, mutual funds report their holdings on a monthly or quarterly basis.
4. Typically, there is no exit load. If you sell on the exchange, the majority of ETFs have no exit load. For early redemptions, mutual funds frequently have exit loads (especially <1 year).
5. Better Tax Efficiency Because ETF turnover is lower, there are fewer taxable events within the fund. When mutual funds buy or sell stocks, they may internally generate capital gains.