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4.0

Summary

Exchange Traded Funds
amit aggarwall@amitaggarwal007
Jan 22, 2010 12:09 PM, 8290 Views
Fake
(Updated Jan 22, 2010)
Why should one invest in an ETF?

Investing in ETFs has grown significantly in India and now investors are shifting from their current equity based portfolios to ETFs. This is a good change. The market for etf has seen a considerable amount of change and investors are finally realizing that its not possible to beat the market. I myself realized that after I started to invest in etfs.


Buying / Selling ETFs is as simple as buying / selling any other stock on the exchange.


You know the exact price at which you are buying your ETF unlike any other fund in which at the time of purchase you are not aware what would be the closing NAV of the fund


ETFs allow you to take benefit of intraday movements in the market, which is not possible with open-ended Funds.


With ETFs one pays lower management fees.(other funds have 2.25% as compared to ETF which usually is .75% - A saving of 1.5% upfront)


ETFs have lower tracking error


As per my knowledge benchmark bees are one of the largest and most traded ETFs in India and have high liquidity and transparency.

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