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Exchange Traded Funds (ETFs) are well-known as investment vehicles that provide low expense ratio and allow investors to buy and sell units at a real time just like stocks in Stock Exchanges.
ETFs also offer a variety of opportunities to invest based on the investor’s financial needs and risk appetite.
In the last article of ABCDETF series by Mirae Asset Mutual Fund, an investor awareness initiative, the fund house takes us through the opportunities available in the ETF space.
What opportunities do ETFs provide?
- ETFs provide exposure to multiple asset classes like equity, debt and commodity depending on the underlying benchmark
- Within equity, investors may invest in broad based ETFs like Nifty 50 Index and Sensex and smart beta strategies like equal weight index, liquidity, alpha, momentum and so on
- Debt ETFs give exposure to liquid debt, government securities and target maturity indices
- You may invest in precious metals like gold and silver through ETFs
- ETFs also offer exposure to international markets through global ETFs available in India
Other key advantages
- Investors can use ETFs for tactical allocation to benefit from short term market movements and real time trading
- ETFs can be used to construct the entire investment portfolio
Conclusion
ETFs offer a wide array of offerings across products and asset classes. Investors may achieve all their life goals through ETFs.
IAP Disclaimers
An Investor Education and Awareness Initiative by Mirae Asset Mutual Fund. All Mutual Fund investors have to go through a one-time KYC (Know Your Customer) process. Investors should deal only with Registered Mutual Funds (RMF). For further information on KYC, RMFs and procedure to lodge a complaint in case of any grievance, you may refer the Knowledge Center section available on the website of Mirae Asset Mutual Fund.
In a newly launched investor education & awareness initiative called ABCDETF Mirae Asset Mutual Fund explains the concept of ETFs.
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Fund investments are subject to market risks, read all scheme related documents carefully.
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