When I first heard about ETFs, I was at a loss as to how these funds would give me returns which I was expecting.
However I was wrong. Exchange Traded Funds are essentially Index Funds that are listed andtraded on exchanges like stocks. Until the development of ETFs, thiswas not possible before. Globally, ETFs have opened a whole newpanorama of investment opportunities to Retail as well as InstitutionalMoney Managers.
Earlier my portfolio consisted of entire gamut of stocks but after I started in Investing in ETFs like GoldBeES, Nifty BeES and others its really been a boon to my portfolio. The ETFs enabled me to gain broad exposure to entire stock markets in different Countries and specific sectors with relative ease, on a real-time basis and at a lower cost than many other forms of investing.
ETFs can easily be bought / sold like any other stock on the exchange through terminals across the country. Also the expense ratio is much lower compared to any other mutual funds.
So if you are still wondering what is the right way to invest in the market, think no more. Exchange Traded Funds are the right way to go.
Happy Investing :)