Explore Exchange Traded Funds (ETFs)
Exchange-Traded Funds (ETFs) are investment funds that are traded on stock exchanges like regular stocks. They provide investors with an opportunity to diversify their portfolios by investing in a basket of securities across various asset classes. They also provide flexibility as they can be bought or sold throughout the trading day. ETFs are suitable for both retail and institutional investors who are looking for cost-effective, diversified investment options.
What are Exchange Traded Funds (ETFs)?
Exchange-Traded Funds (ETFs) are investment funds that are traded on stock exchanges, just like individual stocks. They are designed to track the performance of a specific index, commodity, sector, or asset class. ETFs are open-ended investment funds, meaning the number of shares can fluctuate based on demand. They are passively managed and aim to replicate the performance of the underlying index or asset class.
Benefits of ETFs
-
Diversification
ETFs provide investors with instant diversification by holding a basket of securities, reducing the risk associated with investing in individual securities.
-
Flexibility
ETFs can be bought or sold throughout the trading day at market prices, providing investors with liquidity and flexibility.
-
Cost-effective
ETFs generally have lower expense ratios compared to actively managed funds, making them more cost-effective for investors.
Begin your investment journey with InCred Premier today!
Risks associated with
Exchange Traded Funds (ETFs)
-
-
Market Risk
As ETFs track the performance of an underlying index or asset class, they are exposed to market fluctuations and can experience losses.
-
Tracking Error
ETFs aim to replicate the performance of the underlying index or asset class, but there can be a slight deviation known as tracking error due to factors like fees and expenses.
-
Liquidity Risk
Some ETFs may have lower trading volumes, leading to wider bid-ask spreads and potential difficulty in buying or selling shares.
-
Counterparty Risk
ETFs may enter into derivative contracts with counterparties, and there is a risk that the counterparty may default on their obligations.
-
Frequently Asked Questions
*Each user of this information should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred here (including the merits and risks involved) and should consult his own advisors to determine the merits and risks of such investment. Past performance is not necessarily a guide to future performance.
Insights about the market.
-
Mon, 2 Dec 2024
8 mins
Portfolio Management Services or Equity Mutual Funds: Key differences
Read More
-
Tue, 26 Nov 2024
5 mins
How to Choose Unlisted Shares: A Guide for Indian Investors
Read More
-
Tue, 26 Nov 2024
3 mins
Are Large Cap Blue Chip Stocks the Right Investment for You?
Read More
-
Tue, 26 Nov 2024
3 mins
What is a Small Cap Fund? Understanding the Basics for High Returns.
Read More
-
Tue, 26 Nov 2024
4 mins
How much to Save for an Emergency Fund?
Read More
-
Tue, 26 Nov 2024
1 min
Disclosure - HDFC Life Click 2 Achieve
Read More
-
Tue, 26 Nov 2024
1 min
Disclosure - HDFC Life Sanchay Par Advantage
Read More
-
Tue, 26 Nov 2024
1 min
Disclosure - HDFC Life Smart Protect Plan
Read More
-
Tue, 26 Nov 2024
1 min
Disclosure - HDFC Life Click2Invest ULIP
Read More
-
Tue, 26 Nov 2024
1 min
Disclosure - HDFC SL ProGrowth Flexi
Read More
-
Tue, 26 Nov 2024
2 mins
How Fixed Income Securities Enhances Portfolio Resilience in Today’s Market
Read More
-
Wed, 6 Nov 2024
4 mins
How to select a Fund Manager?
Read More
-
Tue, 5 Nov 2024
3 mins
US Fed Rate Cut Impact on Indian Stock Market
Read More
-
Tue, 5 Nov 2024
4 mins
Unlisted Shares in the Indian Financial Market
Read More
-
Tue, 5 Nov 2024
5 min read
Understanding Portfolio Management Services: A Comprehensive Guide
Read More
-
Tue, 5 Nov 2024
7 mins
Types of mutual funds in India: From equities to debt
Read More
-
Tue, 5 Nov 2024
8 mins
Things to keep in mind before investing in Mutual funds
Read More
-
Tue, 5 Nov 2024
4 mins
Should You Stay Invested in Equities During Market Uncertainty?
Read More
-
Tue, 5 Nov 2024
4 mins
Risk or Returns: What Should Be the Focus While Selecting a PMS?
Read More
-
Tue, 5 Nov 2024
9 mins
PMS vs AIF Funds: Decoding the Key Differences
Read More
-
Tue, 5 Nov 2024
4 mins
Opportunities in Private Equity: A Growing Asset Class for Indian HNIs
Read More
-
Tue, 5 Nov 2024
4 mins
New Fund Offer (NFO): Advantages and Drawbacks
Read More
-
Tue, 5 Nov 2024
7 mins
Large Cap PMS: What It Is and Why You Should Invest
Read More
-
Tue, 5 Nov 2024
4 mins
ITR filing 2024: ITR form, Documentation & Deadlines
Read More
-
Tue, 5 Nov 2024
3 mins
Is the Indian market overvalued?
Read More
-
Tue, 5 Nov 2024
4 mins
Fixed Deposits or Debt Mutual Funds: A Comparative Guide
Read More
-
Tue, 5 Nov 2024
5 min read
Exploring Alternatives: A Journey into Alternative Investment Funds (AIFs)
Read More
-
Thu, 17 Oct 2024
10 mins
Can Mutual Funds be Pledged as Collateral?
Read More
-
Tue, 1 Oct 2024
2 mins
Budget 2024: Change in Capital Gains Tax for Unlisted Shares
Read More
-
Tue, 1 Oct 2024
3 mins
Who should invest in unlisted shares?
Read More
-
Tue, 27 Aug 2024
5 mins
How to choose the right Mutual fund?
Read More
-
Tue, 20 Aug 2024
5 mins
Key terms associated with Life Insurance
Read More
-
Tue, 20 Aug 2024
4 mins
What is Life Insurance?
Read More
-
Tue, 20 Aug 2024
5 min read
Portfolio Management Services (PMS) Vs Mutual Funds (MFs): Investment Insights
Read More
-
Tue, 20 Aug 2024
7 mins
Personal Finance Calendar 2024-25
Read More
-
Tue, 20 Aug 2024
5 min read
Understanding the Recent Changes in KYC: Guidelines for Investors
Read More
Our Clients have been
Extremely Satisfied
Start your investment journey with InCred Premier today!