Wealth Word of the Day: Exchange Traded Fund

ETF or Exchange Traded Fund is a market security that follows the stock changes on the Index. Stock can be anything, a commodity, a share or assets. It has many features of a Mutual Fund but still differs from Mutual Fund as it keeps changing and can be traded like stock. Also it has lower fees compared to a Mutual Fund so people prefer ETFs these days.
Wealth Word of the Day: Exchange Traded Fund

Majority of ETFs in the market are stock ETFs but still you will find ETFs that are based on commodities, bonds, currencies etc. So the value of ETF depends on the fluctuating daily value of it's underlying asset.

If you want to trade in ETFs , you will have to contact an online broker or even a traditional broker will help you out. ETF gives following benefits,

- Investor can choose the funds he likes 
- ETFs can be traded just like stocks
- Expert knowledge is not required
- Not much risk for long term holding 
- Cost effective investment option

Below are some popular ETFs for Mid cap stocks 

- ICICI Prudential S&P BSE 500 ETF INR
- SBI ETF Sensex Next 50
- Motilal Oswal Midcap 100 ETF INR Mid-Growth
- Reliance ETF Junior BeES INR

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