F (Exchange Traded Fund) ■■ A to Z ■■■■■■ (English words in Mara
What is an ETF (Exchange Traded Fund)?
ETF ■■■■■■ ■■■ fund ■■ stock exchange ■■ ■■■■ ■■■■■■■ buy-sell ■■■■ ■■■■. Mutual Fu
How Does an ETF Work?
1. Investors ■■■■ ■■■■ ■■■
2. Fund House ■■■■■■■■ ■■■■
3. Units ■■ ■■■■■ (NAV) ■■■■
4. Stock Exchange ■■ listing
5. Real-time buy-sell
Types of ETFs
1. Equity ETF
2. Debt ETF
3. Gold ETF
4. Index ETF
5. International ETF
6. Sectoral ETF
7. Commodity ETF
8. Currency ETF
NAV ■■■■■■?
Net Asset Value = (Fund ■■ total value – ■■■■) ÷ total units
ETF vs Mutual Fund
| Parameter | ETF | Mutual Fund |
|-----------------|------------------------------|--------------------------------|
| Trading Method | Real-time stock market | Day-end NAV ■■ transaction |
| Price Fluctuation| Market hours ■■■■■ ■■■ | ■■■ 1 ■■■■ NAV update |
| Expenses | Low | Moderate to high |
| Liquidity | High | 1-3 days redemption |
| Demat Account | Mandatory | Not compulsory |
| Active Manager | No (Passive) | Yes (Active management possible)|
Advantages of ETFs
- Low cost investment
- Instant liquidity
- Diversified portfolio
- Live market price ■■ buy-sell
- Low expense ratio
- Tax efficient
Disadvantages of ETFs
- Demat ■■■ trading account ■■■■■
- Stock market knowledge ■■■
- ■■■■ ETFs ■■■■■ liquidity ■■■ ■■■■
- Active management ■■■■
Example:
■10,000 Nifty 50 ETF ■■■■■ invest ■■■■.
ETF price ■200 → ■10,000 ÷ ■200 = 50 units
Nifty 10% ■■■■■ → ETF price ■220
Value = ■11,000