Thinking where to Invest? Try ETF

What is an Exchange Traded Fund (ETF)?

ETFs are just what their name implies: baskets of securities that are traded, like individual stocks, on an exchange. Unlike regular open-end mutual funds, ETFs can be bought and sold throughout the trading day like any stock.

ETFs tracks an index (NIFTY/SENSEX), or a commodity (Gold) or a basket of assets like an index fund. The ETFs trading value is based on the net asset value of the underlying stocks that it represents.

Benefits of investing in ETF:

a) Flexibility to trade : ETF's can be traded throughout the day on the stock exchange like individual stocks and hence provide liquidity to the customers

b) Lower Costs : ETF's are listed on the stock exchange and generally have a less expense ratio than most mutual funds

c) Diversification : Investments in ETF's are widely diversified as indices are construed to represent performance of the stock market as a whole

Benefits of choosing ICICI direct for your ETF investment are :

a) Invest in a paperless manner

b) No need to cut cheques

c) Get instant confirmation

d) Calculate capital gains at click of a button

e) Check portfolio for realized and unrealized profit/loss