preloader icon

What is an ETF (Exchange-Traded Fund)?

An ETF (Exchange-Traded Fund) is a type of investment fund that trades on stock exchanges like a share. It holds a basket of assets such as stocks, bonds, or commodities and allows investors to gain diversified exposure at a lower cost.

Types of ETFs:

  • 1. Equity ETFs – Track stock indices like Nifty 50 or Sensex.
  • 2. Gold ETFs – Invest in gold without holding physical gold.
  • 3. Debt ETFs – Invest in government or corporate bonds.
  • 4. Sectoral/Thematic ETFs – Focus on specific industries like IT or banking.

Benefits:

  • 1.Diversification – Invest in multiple assets with one trade.
  • 2.Low Cost – Lower expense ratio than mutual funds.
  • 3.Liquidity – Easily bought and sold on stock exchanges.

Ideal for passive investors looking for stable, long-term growth

!Font Awesome Free 6.5.1 by @fontawesome - https://fontawesome.com License - https://fontawesome.com/license/free Copyright 2024 Fonticons, Inc.