What is exchange traded funds (Exchange Traded Funds)?

List of Exchange Traded Funds are mutual funds with a difference from normal mutual funds. Exchange Traded Funds can be traded in stock market like shares. List of Exchange Traded Funds always track an index. Exchange Traded Funds are basically a basket of shares like mutual funds that can be traded online in stock market. Normal mutual funds cannot be bought and sold online directly form stock market.  An Index Exchange Traded Fund contains a large number of shares which replicates the performance of the stock market as a whole or of a particular sector. Exchange Traded Funds like Kotak-Sensex-ETF replicates the performance of BSE Sensex. When sensex has risen Kotak Sensex ETF has risen and vise versa. Similarly Reliance Gold ETF replicates the price of gold in the physical market. When the market rates of gold rise, List of Exchange Traded Fund following gold will also rise and vice versa.

Which is better ETF or traditional mutual funds?

List of Exchange Traded Funds has the advantage over normal mutual funds in terms of ease of buying and selling. An investor who generally invests in stocks online will find it extremely easy to buy a List of Exchange Traded Funds online. The price of a List of Exchange Traded Funds also varies till the operating hours of stock market. Hence it gives the investors the opportunity to take advantage of the volatility of prices (rise and fall) to buy and sell Exchange Traded Funds.

Which is better ETF or Stocks?

List of Exchange Traded Funds gives its investors a huge margin of diversification. If you are investing in a banking linked ETF, then the performance of the whole sector of banking will be reflected in the performance of that ETF. If banking is doing well then the ETF will surely replicate the performance. In America nearly 60% of all trades are captured by ETF.

Will Exchange Traded Funds cost more than normal mutual funds?

Overall expense of Exchange Traded Funds is generally lower than traditional mutual funds. Hence the cost of trading an ETF is less than buying a mutual fund. As in case of stocks, Exchange Traded Funds also attract brokerage and other charges linked with trading.

List of Exchange Traded Funds listed in NSE & BSE?

Why Exchange Traded Funds are less risky investment than normal stock investing?

Exchange Traded Funds are great way of creating almost a perfectly diversified portfolio. A diversified portfolio including a list of exchange traded funds greatly reduces the risk of investing in direct equity. List of exchange traded funds act as a perfect option of direct equity investment and risk management. If an individual wants to invest in stocks, he can start with buying an ETF that replicates Sensex or Nifty. Such Exchange Traded Funds consist of individual stocks of several companies that replicate the performance of Sensex or Nifty as a whole. If Sensex is going up List of exchange traded funds following sensex will also go up and vise verse. Exchange Traded Funds seems to be a dream come true for long term investors. It is ideal for people who have some extra cash in hand which they do not require for net 10 to 15 years. For such long term investors it is great news that Sensex is expected to touch 50,000 (tripple) marks in next 10 years. If such investors invest in a list of exchange traded funds following Sensex, then their money will get tripled in next 10 years. Which is great; as logically it looks very reasonable that sensex is only expected to go high in times to come.

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