JJEM: Special Edition 4 (May 2025)
JJEM: Special Edition 4 (May 2025)
2025-05-31
An Overview of Exchange Traded Funds (ETFs)
Mr. Adarsha M P M , Dr. Giridhar K V
Exchange-Traded Funds (ETFs) have emerged as one of the most popular investment instruments in modern financial markets, offering a unique blend of flexibility, diversification, and cost efficiency. This article provides an overview of ETFs, exploring their fundamental concepts, structure, and types of ETFs. Also covers the factors considered while investing in ETFs, such as liquidity, expense ratio, and AUM, while also addressing how ETFs are different from mutual funds. By presenting key insights into the functioning and types of ETFs, this article aims to equip readers with a foundational understanding of these versatile investment tools, making it a valuable resource for novice and seasoned investors alike. The ETFs are the alternative investment avenue for investors apart from the traditional avenues like banks and post deposits, insurance, mutual funds, and shares. ETFs offer steady returns at minimum risk. As an investment option, ETFs are suitable for risk avoiders, especially salaried employees and long-term investors.
Exchange Traded Funds (ETFs), mutual funds, index, nifty.