Glossary

Mutual Funds & ETFs

What is the difference between an ETF and an index fund?

The difference between an ETF and an index fund is how you buy and sell them: an ETF trades on a stock exchange at live prices through a demat account, while an index fund is a mutual fund bought and redeemed at the day's closing net asset value. Both aim to track a chosen index rather than beat it, so their core strategy is the same. For example, two products tracking the Nifty 50 differ mainly in access, cost, and pricing mechanics. Choosing between them is a question of how you intend to transact, not of which index you want. Verify current costs for each.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.

Related terms

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