Do You Know What Are Exchange Traded Funds?

1.	Do You Know What Are Exchange Traded Funds?
Answer» Exchange TRADED funds (ETF) are a type of mutual fund that combines features of an open-ended fund and a stock. Following are its features: Units are issued DIRECTLY to investors when the scheme is LAUNCHED. Post this period, units are listed on a stock exchange like a stock and traded. Units purchased at the time of launch or bought from the stock markets are credited to the demat ACCOUNT of the investor. Transactions are DONE through brokers of the exchange. Investors need a broking account and a demat account to invest in ETFs. The prices of the ETF units on the stock exchange will be linked to the NAV of the fund, but prices are available on a real-time basis depending on trading volume on stock exchanges. Exchange traded funds (ETF) are a type of mutual fund that combines features of an open-ended fund and a stock. Following are its features:

Answer»

Exchange TRADED funds (ETF) are a type of mutual fund that combines features of an open-ended fund and a stock.

Following are its features:

Units are issued DIRECTLY to investors when the scheme is LAUNCHED.
Post this period, units are listed on a stock exchange like a stock and traded.
Units purchased at the time of launch or bought from the stock markets are credited to the demat ACCOUNT of the investor.
Transactions are DONE through brokers of the exchange. Investors need a broking account and a demat account to invest in ETFs.
The prices of the ETF units on the stock exchange will be linked to the NAV of the fund, but prices are available on a real-time basis depending on trading volume on stock exchanges.

Exchange traded funds (ETF) are a type of mutual fund that combines features of an open-ended fund and a stock.

Following are its features:

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