Exchange Traded Funds can be bought and sold just like any other stock. An ETF combines the valuation feature of a mutual fund or unit investment trust, which can be bought or sold at the end of each trading day for its net asset value, with the tradability feature of a closed-end fund, which trades throughout the trading day at prices that may be more or less than its net asset value. ETFs provide several avenues to participate in different instruments within the country and foreign investments, ETFs provide lot of benefits when compared to ETNs, Stocks, Mutual Funds etc., ETFs are much safer than other modes of investments ETFs are very nascent in Indian Markets. The study looked at transparency, risk, tax, fees, leverage, returns, profits, benefits to name a few and the understanding is that ETFs provide an excellent opportunity for retail investors in parking their investments.
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