Person 1: Uncle! I was advised to buy a particular index fund towards long-term investing. In which form should I buy this index fund: as a mutual fund or as an ETF?
Person 2: As an ETF. It’s preferable compared to mutual funds.
Person 1: Okie. What else should I be aware of?
Person 2: It is preferable to have a diversified portfolio of ETFs tailored to your risk appetite, than to invest in a single fund.
Person 2: Also, make sure that the brokerage fee to purchase those ETFs is as low as possible.
Person 1: Sure, uncle.