Mutual Funds – All you need to know
Quick Questions, Key Terms, and Scheme Rankings
Powered By
NS Wealth Research
Exchange Traded Fund (ETF) – Meaning & How It Works
Key Mutual fund Terms
An Exchange Traded Fund (ETF) is an investment fund that combines features of both mutual funds and stocks.
Important characteristics of ETFs include:
Traded on Stock Exchanges
Unlike traditional mutual funds, ETFs are bought and sold on stock exchanges during trading hours, just like individual stocks.
Tracks an Underlying Asset or Index
Most ETFs track a market index such as Nifty 50 or Sensex, while some track commodities like gold or other asset classes.
Real-Time Pricing
ETF prices fluctuate throughout the trading day based on demand and supply in the stock market.
Requires Demat and Trading Account
To invest in ETFs, investors must have a demat account and a trading account with a stockbroker.
Lower Management Costs
Because ETFs often follow passive investment strategies, they typically have lower expense ratios compared to actively managed mutual funds.
Diversification Benefits
By investing in an ETF, investors gain exposure to a basket of securities rather than a single stock.
ETFs are suitable for investors who want flexibility, transparency, and cost efficiency while investing in financial markets.
Similar Terms
Financial Planning Resources
Metro Migration: Why Pune, Bengaluru, and Hyderabad Now Save You 50% HRA
TL;DR The draft Income Tax Rules, 2026 propose a significant shift for salaried professionals by [...]
Starting Early: How Jadhav Built a Diversified Portfolio and Secured Her Future
First Published on Mint For Pratibha Jadhav, the journey toward financial independence began with a [...]
India’s Income Tax Budget 2026: What It Really Changes for Individuals (And What It Doesn’t)
TL; DR The 2026 Union Budget focuses on stability and structural simplification rather than headline-grabbing [...]
Capital Gains Tax Harvesting in Mutual Funds-A smart way to reduce tax burden for fiscal year 2025
TL;DR: For fiscal year 2025–26, optimizing mutual fund returns requires a mix of disciplined investing [...]
MF Investing Guide
Key Questions about Mutual Fund
Mutual Fund Dictionary
Term of the Month
New Fund Offer
When a new restaurant opens in a neighborhood, curious customers often want to be among the first to experience it. In the investment world, a New Fund Offer (NFO) creates a similar sense of curiosity and opportunity. ( READ MORE)