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Exchange Traded Funds or ETFs have become investment products of choice for millions worldwide as well as in India in the last few years. The ETF market in India is worth more than ₹5 Lakh crores at present and is growing at a rapid speed.
If you are looking for flexibility like stock trading and diversification like mutual funds, ETFs are great options.
In this guide on ETF investing, we will take an extensive look at the world of ETFs and guide you on how to begin investing with ETFs.
Understanding the Basics of ETFs
An Exchange Traded Fund (ETF) is an investment pool comprised of funds invested by various investors.
The fund, in turn, is invested in a basket of assets such as stocks, commodities, currencies, bonds, and others.
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ETFs are traded on stock exchanges similar to listed stocks. They can be bought and sold anytime during a trading day.
Each ETF is designed to track a specific index, sector, or asset class, and hence follow an inherent theme.
Thus diversification is an inherent benefit of investing with ETF. By investing in one ETF, an investor can gain
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