From a portfolio standpoint, index funds are restricted to mainly benchmark equity indices, whereas ETFs can cover a much broader range of securities and portfolios. Here are a few examples:
- Index ETFs such as Kotak Nifty ETF
- Sector ETFs for FMCG, Pharma, Healthcare, etc.
- Commodity ETFs such as Gold BeeS, HDFC Silver ETF, etc.
- Bond ETFs such as Liquid BeeS.
Long story short, ETFs offer more variety, generally have lower expense ratios and are listed on the exchange like stocks. You're better off investing in them regardless of your risk profile, duration, or anything else.
Hope this makes sense.