ETFs what is this?

ETFs what is this?

etf are exchange traded fund means fund which are listed in stock exchanges, in simple language a fund composed by a (big institution houses like banks or brokerage houses etc )they create  a fund which contains many companies equity shares which they want to keep together in one basket and make them list on exchanges.

when this type of fund is listed (etfs) it has certain n.a.v(net asset value) which a investor has to pay in order to purchase that fund, as we knew that it is listed then it means they can be traded like we trade in equity shares at opening of market n.av open and at closing time it close on certain value just like shares 
etfs can be purchased and sold any time in market hours.

etfs benefits-

  •  time saving for investor
  •  easy buying & selling
  • less brokerage as compare to mutual funds
  • no redemption procedure in it again time saving.
it is beneficial to those investor who don't have time to look market and don't want to involve its complications & stress.


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