From Wall Street To Dalal Street: The Rise Of Etfs

2025-04-30 03:13:14

(MENAFN- Kashmir Observer)
Representational photo

ETFs, or Exchange Traded Funds, have revolutionized the way people invest globally. They are similar to mutual funds in that they pool money to buy a variety of assets. But there are important differences that make ETFs a popular choice for investors.

ETFs were first introduced in the early 1990s in the United States to offer a more liquid way for investors to access index funds. Over time, they spread to other markets, including India, where they were introduced later but quickly gained traction.

The key advantage of ETFs is how they are traded. Unlike mutual funds, which are priced once a day, ETFs are traded on stock exchanges like individual stocks. This means investors can buy and sell them throughout the day, giving them flexibility and real-time pricing.

For investors, ETFs offer transparency, diversification, and lower costs. They allow individuals to track their investments in real time, providing a clear view of market performance. Like mutual funds, ETFs invest in a range of assets, spreading risk. Additionally, they tend to have lower expense ratios than actively managed funds, making them an affordable option for many.

In India, ETFs have become a core part of the investment landscape. Popular ones include Nifty BeES, which tracks India's top 50 companies, and Gold ETFs, which let investors gain exposure to gold without owning it directly.

Read Also Kashmir's Economic Wake-Up Call: Diversify or Fall Behind How Kashmiri Families Can Build Wealth

As ETFs continue to grow, they offer a flexible, cost-effective way for both new and seasoned investors to manage their portfolios. Whether in India or globally, understanding ETFs can open the door to smarter investing.

Disclaimer: This article is for information only and doesn't offer investment advice. It's not an endorsement or an offer to buy or sell any financial products. If you decide to act on the information here, you do so at your own risk

MENAFN30042025000215011059ID1109490140

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.