Mutual Funds vs ETFs (1)

Last time we have brought up 4 different ways to start investing, while picking stocks requires the most time and experience amongst those. As such, this option might be highly achievable for investment newbies. Are you looking for stepping stones? The market has got a lot on offer, for us to diversify risks and adjust our portfolios. 

To minimize your risks, selecting different products from various categories is surely worth considering. Realistically speaking, the most ideal number of products ranges from 15-20. So in order to keep things simple, choosing mutual funds or ETFs could be the obvious answer. The main selling point of those is that a single product has already covered a few assets, while there are some recognizable differences. 

Mutual funds are comparatively more of a prolonged history, which professional fund managers aggregate investors’ capital to further invest. Most mutual funds adopt the “active management” method, as the manager will be actively trying out different investment techniques to beat the market. Investors have to buy or sell the stock holdings in that fund, directly from the fund provider. Plus, the trades are settled at the end of every day. 

There are a few benefits of selecting mutual funds. First and foremost, as professionals are analysing and choosing the best options for you, it can definitely free up your time. It can as well lower your risks, since you are performing diversification by investing in an array of global institutions. Investors are free to buy funds from a wide range of fund distributors – such as banks, brokers, and financial advisors. However, as your capital is in good hands with the professionals, the costs would then be much higher. On the other hand, if your funds are being overbought that in turn causes the size of the fund to increase, it would be very difficult to manage your holdings. 

On a separate note, ETFs belong to a relatively modern side of funds. As passive management is being adopted, they are usually index funds that track the market index. Similar to the normal stock market, we would then buy or sell stocks from other investors. Since trades can be settled at any time of the day, the flexibility of ETFs is much more outstanding.   

Likewise, ETFs can also diversify your risks. Investors purchase the stocks included in that index in one go, so as to prevent your capital being poured into one single stock. Most importantly, the costs made to investors are much lower than that of mutual funds. Hence, this is the main reason for the trend in an exponential increase of ETFs investors. Considering the benefits, there are still some risks that we have to be aware of. Due to the fact that the passive management is adopted, the value of ETFs falls when the index being tracked goes down. Investors must then be careful with the potential loss. Besides, ETFs may not fully cover all stocks proportionally in that index, thus the movement of it may not 100% follow the index performance. 

Now that we have compared the good and bad about mutual funds and ETF, let’s move on to active and passive management in our next blog. Stay tuned! 


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tiips 自2019 年創立至今,2020年完成種子輪融資,唯2021年第四年仍未能籌得新一輪融資,我們作出了艱難的決定,將於2022年2月21號 23:59 終止tiips mobile app 的運作。

我們目前的首要任務是確保用戶積分換取資產及實金買賣服務暢順度及公平性,我們將會分階段停止tiips mobile app 的功能及運作。


所有客戶的黃金儲存於Tiips Services limited。Tiips Services Limited 是獨立第三方信托人,信托或公司服務提供者牌照號碼為TC007559,客戶的黃金儲存於張氏金業有限公司Tiips Services Limited 的戶口。


客戶的Bitcoin存量是儲存在Tips Dollar (HK) Limited 擁有的cold wallet。


31/12/2021 23:59 停止買入實金。

1/1/2022 00:0021/2/2022 23:59 tiips 積分換取資產及賣出實金及Bitcoin 如常進行。而我們將會用 ”買入價” 回購客戶的資產,已回饋客戶多年來的支持。

21/2/2022 23:59 tiips mobile app 停止運作。

1/3/2022 00:0030/11/2022 23:59 人手處理顧客剩餘現金。客戶的剩餘資產將會用2/21/2022 23:59 當刻價格賣出,而相關金額我們會幫顧客保留,而我們將會用電郵方式確認客戶剩餘之金額,客戶可電郵[email protected]Whatsapp 93889879辦理手續領取現全,該現金我們會用FPS 轉賬,手續費維持港幣$3。

1/12/2022 00:0031/12/2022 23:59 我們會將所有顧客未領取的現金捐贈致愛護動物協會。

儘管tiips mobile app 將終止營運,我們往後會集中開發機構客戶市場,以延續寓消費於儲蓄的理念。


tiips was established in 2019 and accomplished its seed funding in 2020. It was with regret that we were still unable to receive the funding for the new round in 2021. Thus, we have unfortunately come to the decision to cease the operation of the tiips mobile app on 21 February 2022 23:59.
To ensure the smooth facilitation and fairness in user points & assets redemption and gold trading, we will close down the functions of tiips mobile app according to different phases.

Safety of Gold

All users’ gold is now stored in Tiips Services Limited, account provided by Cheung’s Gold Traders Limited. Tiips Services Limited is an third party trustee, which its Trust or Company Service Provider Licence number is TC007559.

Safety of Bitcoin

All users’ Bitcoin is now stored in the cold wallet owned by Tips Dollar (HK) Limited.

Timeline as follows:

31/12/2021 23:59 Gold purchases will be suspended.

1/1/2022 00:00 to 21/2/2022 23:59 tiips reward & assets redemption, gold selling and Bitcoin trading will be operated as usual. To express our gratitude throughout the years, tiips will purchase users’ assets at the “BUY PRICE”.

21/2/2022 23:59 tiips mobile app will be ceased to operate.

1/3/2022 00:00 to 30/11/2022 23:59 tiips will manually proceed the users’ remaining cash. Those assets will be sold at the price as of 21/2/2022 23:59, while we will keep the amount of money and email the customers for further confirmation. Customers may email us at [email protected] or Whatsapp 93889879 to collect the cash. The payment will be performed through FPS, and tiips will keep the handling fee at HKD 3.

1/12/2022 00:00 to 31/12/2022 23:59 tiips will donate all the uncollected cash to The Society for the Prevention of Cruelty to Animals (SPCA).

The tiips mobile app might have suspended its operation, nevertheless tiips will continue to expand its corporate market, to sustain the belief in combining spending and saving in the future.

Last but not least, we would like to express our heartfelt gratitude for the support from tiips’ users, merchants and partners over the past three years.