ETFs trade on-exchange like stocks (live prices, need demat, watch tracking error + liquidity). Index funds are mutual funds at end-of-day NAV with clean SIP automation and no bid-ask spread.
Rule of thumb
- Monthly SIP investor → index fund (automation wins).
- Tactical/lumpsum buyer comfortable with limit orders → liquid ETFs (e.g., Nifty 50 ETFs).
- Expense ratios are similar now — liquidity and convenience decide.
Educational content, not financial advice.