Exchange Traded Funds or ETFs are very popular these days but did you know that these investment options have actually been around since the 90s when they were first introduced as an innovative option, to investors who wanted freedom from the burden of timing the market and stock picking?
ETFs are quite simply a basket of assets (bonds, stocks, commodities etc.) that reflect the composition of a benchmark index, like the Nifty or BSE Sensex for instance. They offer investors broad exposure to stock markets basis the index they track, on a real-time basis and at a lower cost than many other forms of investing. They are transparent in their holdings and offer investors the advantage of liquidity.
Think of them as a cross between equity stocks and mutual funds. This is what makes them so attractive to investors like your friends. Read our next blog to learn more about ETFs and their potential to grow your wealth.
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