ETFs in India - All those "BeES" on NSE + more

Exchange Traded Fund (ETF) :
Exchange traded funds are mutual funds which you can buy and sell in the stock market, just like any other stocks or shares ! This as far as investment is concerned an exchange traded fund is just a mutual fund and as far as buying or selling the mutual fund is concenred, an exchange traded fund is just like a stock or equity which you can trade on stock exchange like NSE. Below you will find a list of all exchange traded funds in India which are listed on NSE and their description.

How to buy or invest an Exchange Traded Fund?

Just as you buy a company share or a stock. You need a Demat account. The units of ETF or Exchange traded fund you buy will appear in your portfolio in your Demat account.

Why invest in Exchange Traded Funds (ETFs) ?:
Here is a list of advantages of investing in Exchange Traded Funds (ETF) :
  • Absolutely no paper work : easiest method to buy / sell mutual fund.
  • ETF like NIFTY BeEs provides the most affordable (unleveraged) way of 'buying Nifty'.
  • Gold ETFs like GOLDBEES are the best way of investing in gold. No need to physically buy gold. Provides affordable way of investing in small amounts of gold, as compared to trading gold on commodities exchange. Also much better and hassle free than physically buying gold from the market and worrying about its purity, security etc.
  • Real time NAV calculation. Essentially the price of the ETF can be thought of its NAV and it keeps changing real time. So the performance of ETF is much more transparent and easy to judge.

List of Exchange Traded Funds or ETFs traded on NSE India :

ETFs - Index Funds (Nifty, Junior Nifty, etc.)
ETFs - Banks / Banking stocks
Gold Exchange traded Funds
To know more about Gold ETFs, please read my detailed post on
Gold mutual funds and Gold exchange traded funds

ETF - Liquid Funds


Related posts :

Sep 3, 2008

1 comments:

Investo Blog March 4, 2009 at 1:04 AM  

Here is a list of frequently asked questions on this topic which I think this post successfully answers : What is an exchange traded fund? what are the different kinds of exchange traded funds or etfs in india? What are the advantages and disadvantages of investing in an etf? what is a gold etf? what are different types of gold etfs in India? what are liquid bees? what is nifty bees?
how can I trade in etfs?

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