Exchange Traded Funds (ETFs)

An exchange traded fund or ETF as it is commonly referred to as is an open ended mutual fund scheme whose units can be traded at the stock exchange just like company stocks. Unlike other mutual funds, ETFs are listed at the stock exchange and their units are available for trade at the fund’s current market price. Investors can buy or sell their ETF units end number of times throughout live trading hours. Investors can either be involved in intraday trading or they can buy ETF units and hold on to them like long term investors. They are considered to be a cost effective investment as investors can even purchase one single ETF unit, unlike other mutual funds where one cannot buy a single unit but can make a minimum SIP or lumpsum investment.