top of page

What are the benefits of investing in ETFs?

Curious about ETFs

What are the benefits of investing in ETFs?

There are several benefits of investing in ETFs (Exchange Traded Funds) for Indian investors, including:

1. Diversification: ETFs allow investors to gain exposure to a diversified basket of stocks or other securities with a single investment. This can help to reduce the risk of a concentrated portfolio.

2. Low Cost: ETFs typically have lower expense ratios compared to actively managed mutual funds, which can help to improve longterm returns.

3. Liquidity: ETFs trade on exchanges like stocks, which means they can be bought and sold throughout the trading day, providing investors with greater flexibility and liquidity.

4. Transparency: ETFs provide transparency to investors as the underlying holdings are publicly disclosed on a regular basis, which can help investors make informed investment decisions.

5. Tax Efficiency: ETFs are generally more tax efficient compared to mutual funds as they have a lower turnover of holdings, resulting in fewer capital gains distributions.

6. Easy Accessibility: ETFs are easily accessible to retail investors as they can be purchased through a brokerage account, which is available to anyone with a demat account.

Overall, ETFs offer Indian investors a costeffective and convenient way to gain exposure to a diversified basket of securities, while providing liquidity and transparency.

Empower Creators, Get Early Access to Premium Content.

  • Instagram. Ankit Kumar (itsurankit)
  • X. Twitter. Ankit Kumar (itsurankit)
  • Linkedin

Create Impact By Sharing

bottom of page