Why should you invest in an exchange traded fund, or ETF? An explainer
Live MintBefore opting for a mutual fund, investors often face a dilemma as to which schemes to choose, and which ones to overlook. Although there are options galore when it comes to mutual funds, one category that investors are suggested to explore includes exchange traded funds. Exchange traded funds, or ETFs, are a type of mutual funds that usually track an index or sector, and are traded on a stock exchange just like a stock. Trading in real time: Unlike other mutual funds, exchange traded funds trade in the real time on a stock exchange and the investor can invest or redeem his investment as and when he pleases. Focused investment in a sector or index: An ETF usually tracks gold, index or sector, thus enabling investors to get exposure to that particular sector via a market tradeable fund.