ETFs are Exchange Traded Funds– In India they offer diversification, cost-effectiveness, and liquidity.
ETFs provide exposure to a broad market or specific sectors, reducing risk compared to individual stocks.
ETFs typically have lower costs in terms of expense ratios. This is because ETFs are usually passively managed and designed to track specific indices, resulting in lower management fees compared to actively managed mutual funds.
They are traded like stocks, offering high liquidity and flexibility. ETFs offer transparency by disclosing their holdings daily.
This transparency allows investors to know exactly what assets they are invested in, providing greater clarity and control over their investment portfolios
With lower fees and tax efficiency, ETFs can enhance long-term returns. Additionally, they benefit from professional management and transparency, making them suitable for both novice and seasoned investors.
Below are listed ETF and also % allocation.
NIFTYBEES tracks Nifty 50 index , which represent performance of top 50 companies listed on NSE , BANK BEES focuses on private bank stocks ; similarly we have sectoral ETFs for our suitable asset allocation
Robins Joseph , SEBI Registered Investment Adviser , Certified Financial Planner. Founder of MyGuide2Wealth based in Noida specializing in wealth, investment, retirement services with clear aim of spreading financial literacy and advocating on India’s strong equity story.
Disclaimer: The investment advice provided by the author is for informational purposes only. We take no responsibility for any losses or damages resulting from the use of this information.
