ETFs dominate DIY Tier-1 portfolios because they are cheap, transparent, and easy to auto-buy. Mutual funds still matter in workplace plans and some advisory platforms.
Practical differences for SIP users
| Factor | ETFs | Mutual funds |
|---|---|---|
| Pricing | Intraday market price | End-of-day NAV |
| Workplace plans | Less common | Very common (US 401k) |
| Fractional auto-invest | Broker-dependent | Often natural |
| Cost scrutiny | Expense ratio + spreads | Expense ratio + possible loads |
Conclusion
Use whatever your account makes automatic and cheap. Consistency compounds harder than winning a product-format debate.