What is the process of investing in ETF? Exchange Traded Fund is a type of mutual fund which invests in stock market indices like Nifty, Sensex or in groups of different market themes like PSU, banking or IT stocks as per the weightage of the index.
Next step would be to link this account to the trading account. Then Go to the order placement option from your trading account and select the ETF of your choice and enter it in the order entry form. Also submit the details of how many units of ETF you want to invest in.
ETFs trade in the market like stocks. Therefore, to invest in these, it is necessary to have a demat and trading account. The process of buying and selling ETFs is like stock trading. If you want to buy an ETF, first open a demat account with a broker.
Before clicking the buy option, the applicant must check the NAV of the ETF. NAV tells you whether the units of the ETF are trading at the right price in the market or not. After payment of the investment amount, ETF units will be credited to your demat account.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.) Exchange Traded Fund i.e. ETF is traded on the stock exchange like the shares of a company. Where can you buy and sell ETFs? Let’s see whether it is necessary to have a Demat Account to invest in ETFs? Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
