Exchange Traded Funds

Exchange-traded funds (ETFs) are investment vehicles that track the performance of a particular market index or asset class. They are called "exchange-traded" because they are traded on stock exchanges, similar to stocks. ETFs are a type of mutual fund, but they differ in that they are traded throughout the day on stock exchanges, while mutual funds are bought and sold at the end of the trading day based on their net asset value. ETFs offer investors the benefits of diversification, low fees, and ease of trading. They can be a good option for investors who want a low-cost way to diversify their portfolio and gain exposure to a particular market or asset class.

Examples of popular ETFs include Nifty ETF and Gold ETF, which tracks the 50 Companies of Nifty and track the Indian Price of 24 Carat Gold.

ETFs were introduced in India in 2001. The first ETF was NIFTY BEES (Nifty Benchmark Exchange Traded Scheme) based on NIFTY 50.