What Are Exchange Traded Funds (ETFs)?
Exchange-Traded Funds
Exchange-Traded Funds abbreviated as ETFs are also passive funds whose portfolio replicates an index or benchmark such as an equity market or a commodity index. The units are
issued to the investors in a new fund offer (NFO) after which they are available for sale and purchase on a stock exchange.
Units are credited to the investor’s Demat account and the transactions post-NFO is done through the trading and settlement platforms of the stock exchange.
The units of the ETF are traded at real-time prices that are linked to the changes in the underlying index.
In India, there are many preferred & famous ETFs among investors like GOLD BEES, NIFTY BEES, CPSE ETF, BHARAT 22 ETF.
Hi, I’m Managing Director at Gurpreet Saluja Financial Services Pvt. Ltd. Where I help my investors to invest in mutual funds and achieve their financial goals. I’m also a Value Investor and here I write about Personal Finance & Investing.
