ETFs vs mutual funds in India are buzzing this Diwali season. The hot take isn’t about returns—it’s about costs, pricing clarity, and who actually shows you the numbers.
Cost snapshot for ETFs - Groww charges Rs 20 per ETF script plus GST. [1] - Brokerage can show up as a per-trade charge—often around Rs 5-20, depending on the script. [1] - GST on brokerage is charged (18%). [1] - Entry, maintenance and exit loads vary by fund house. [1] - Selling charges apply too, so the total cost isn’t just the buy price. [1] - Some traders point to Zerodha as a more transparent pricing option. [1] - You can sell an ETF in the market at the price you want during trading hours, with same-day funds delivery. [1]
Pricing clarity and the broker debate - The discussion highlights that pricing isn’t always obvious, prompting some to call out Zerodha for clarity in pricing. [1] - The core question for retail investors: do you favor the intra-day flexibility of ETF trading or the typically simpler pricing of many mutual funds? [1]
Diwali decision criteria - If you value pricing transparency and real-time pricing, consider the ETF route with a broker that shows all charges clearly. If calming costs and a straightforward exit are your priorities, look at mutual funds.
Closing thought: during Diwali allocations, run the numbers—brokerage, GST, and selling charges—before you pick ETF or mutual funds. [1]
References
Groww
User compares Groww ETF vs mutual funds, discusses brokerage, GST, selling charges, pricing transparency, and suggests Zerodha as well today.
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