Question

What is the difference between a limited liability partnership (LLP), a mutual fund, and an ETF? What is the performance record of an S&P500 ETF? What are the long-term performance records of equity mutual funds, linking your answer to the AUM growth of passive investing?

Answer 1

The terms like limited liability partnership, mutual funds and etf are similar terms but different meaning.

1) limited liability partnership : it means the partnership in the company is limited to some extent.

example: Mr .x purchased an open fund his partnership with the company limited to particular fund only.

2) Mutual fund : Mutual fund is a fund that can be raised by pool of investments through AMC to fullfill their requirements. Generally the mutual funds are two types both open and close ended funds. These are can be traded in regular business hours in the market.

3) Exchange traded funds(ETF's) : ETF's are mostly traded in open ended market. These type of funds do not maintain any particular period of time.

example : currency exchange, gold etc.,

In this case these are the better approch for asset under management (AUM) for the above mutual funds, etf's the long run market will give good returns compare to short run.