Both exist
like stocks
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We can do intraday using Niftycase etf but not funds
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In ETF , We can trigger ATO (in Zerodha , not sure about ICICI direct) on Niftycase based on nifty level and its corresponding calculated iNav
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Arbitrage - Checking its index or future
Similar to Fund
- We can do SIP
- SWP
- Buy on dip and Rupee cost averaging
But fund wins when
- Low volume (except top ETFs)
- Wide bid–ask spreads
- Slippage
- No Buyer (but we can sell direct to AMC - But Not done this , I think even for small investor can do ETF redeem to AMC directly)
Personally I think
ETF = “Mutual fund in stock form”
coming to the point , The Buying price may not be much matters to long investors . But just an example
If iNav of a etf is 100 and you are buying at 20 more than or 120 Rs then even in the long term it may affected
For day traders , Swing traders iNav matters , for long term investors its better to watch iNav for a better result.
For long-term investors:
iNAV matters only at the time of buying/selling, not afterward s (for high liquid ETF only ).
But these things affect in terms of each ETF
- Tracking error over time (like Funds)
- Liquidity of the ETF (rarely happen in funds I think , I have small investment in mutual fund via ICICI but redeem process easy even though the redeemed price is not sure at the time of redeem )
Have noted few points in this discussion like where we can check iNav of popular Amc, redeem of fractional shares , Current price is far from the real time NAV
If you wish You can refer this post (tradingqna only) 101 Beginner Questions — Lessons I Learned from TradingQnA - #7 by sandeep_cs
Sorry for the long reply