What's the difference between an index fund and an ETF?
The short answer
Both let you own a whole market cheaply; the difference is mostly how you buy and hold them. An index fund is a mutual fund you buy at the end-of-day price, ideal for automatic monthly SIPs and set-and-forget investing. An ETF trades on the exchange like a stock, so you buy it through a broker at live prices during market hours, which suits people who already have a demat account and want flexibility, but it can carry small trading costs and pricing gaps. For most busy founders, a plain index fund via SIP is the simpler, lower friction choice; an ETF is fine if you prefer exchange trading. Either way, favour broad, low cost options and resist the temptation to trade them actively.
A curated summary to orient you, not advice. The resources below are the real value.
Go deeper, your way
2 hand-picked resources, 1 India-specific, 1 link-checked. Pick how you want to dig in.
🧭 Guide
FreeBeginner
Why we picked it
The canonical, no-hype reference on building a simple index portfolio and why costs and discipline beat cleverness.
