Exchange Traded Funds (ETF) – Indian ETFs

An exchange traded fund (ETF), as the name implies trades on an exchange just like any other stock but tracks an index, a commodity like an index fund. As far as trading is concerned, it’s like a stock from the perspective of an investor. An investor can short, use margins provided by depository participants/brokerages.

From functional point of view it combines the characteristics of both open and closed ended funds. Since it is traded on an exchange NAV/price changes at every moment during the trade hours (of course subjected to the liquidity in the fund) similar to a closed ended fund.

But the fund size is not fixed like an open ended fund. Units are created and redeemed based on demand and supply. From the investment perspective it’s like an index fund. It tracks a predefined bucket of stocks or an index or a commodity.

The expense ratios for ETFs are very less compared to normal open ended funds as much research is not required and requires minimal management.

The below is a list of a few Indian ETFs.

Bank BeES - Tracks CNX Bank Index
Junior BeES - Tracks Nifty Junior Index
ICICI SENSEX Prudential Exchange Traded Fund – Tracks Sensex

For more funds list please visit the below link.

Indian Mutual Funds