Mutual fund is a mechanism that pools money from various investors by issuing units and invest such funds in various securities in accordance with objectives as disclosed in offer document. A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI).
Mutual Funds in India are governed by the SEBI (Mutual Fund) Regulations 1996 as amended from time to time. "As per the said regulation every close ended scheme other than equity linked saving scheme, shall be listed on recognised Stock Exchange"
ETF is an open ended fund which is traded on Stock Exchange. It is a security that trades like a stock on Stock Exchange. ETF is a security that tracks an index, a commodity or a sector like an index fund or a sectoral fund.