Thursday, March 21, 2019
Finance
   /   /  Post Comments
 

ETFs/ Exchange Traded Funds

 
  By : , Palakkad, India       25.6.2010         Phone:-          Fax:-          Mail Now
 

What are ETFs/ Exchange Traded Funds ?

ETFs are open ended passively managed mutual funds that are traded on exchange with an objective of providing returns as that of a particular market index. Based on the broader market ETFs are of following types.

ETFs

  • Equity
  • Bonds
  • Commodities

Advantages of ETFs:

  • Easier to track
  • High quality and well diversified portfolio.
  • Convenience of trading & Real Time NAV
  • Available in lower denomination
  • Dividends received are tax-free.
  • Investments are exempt from wealth tax

ETFs combine the benefits of : Mutual Funds (Diversification, Regulated, Open ended) and Stocks (Bought and Sold during the day, Transparent, Liquid).

Users of ETF:

Due to unique structure of ETFs, all types of investors whether retail or institutional, long term or short term, can use it to their advantage.

  • Investors

  • Hedgers

  • Arbitragers

Structure & Working of ETFs:








DISCLAIMER: The views and opinions expressed in this article are those of the authors /contributors and do not necessarily reflect the official policy/opinion of webindia123.com / Suni systems Pvt. Ltd. Webindia123.com / Suni systems Pvt. Ltd and its staff, affiliates accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of the material published in the site. In case of any queries,or complaints about the authenticity of the articles posted by contributors, please contact us via email.