Equity Exchange-Traded Funds

Equity Exchange Traded Funds (ETFs) are simple investment products that combine the flexibility of stock investment and the simplicity of equity mutual funds.

ETFs trade on the cash market of the National Stock Exchange, like any other company stock, and can be bought and sold continuously at market prices. Equity ETFs are passive investment instruments that are based on indices and invest in securities in same proportion as the underlying index. Because of its index mirroring property, there is a complete transparency on the holdings of an ETF.

A retail investor can buy ETFs for as little as Rs. 100 and then trade on the exchange with a minimum trading lot of one unit and carry significantly lower fund management costs.