These days there are several attractive options for investment in the stock market. People are getting confused between these options whether to invest in mutual funds or directly into stocks. It may be noted that returns on mutual funds investment depend on the fund managers and market fluctuations.
If an individual chooses stocks as an investment, then the person will have to ponder and pick good counters to pump in money. To smoothen the process of investment, Exchange Traded Fund i.e. ETF can prove to be a good option. In an ETF, you will invest money not in a single stock but in a bunch of shares included in an index of the stock market.
ETFs trade on the stock exchange like shares of a company. ETF is a passive investment that invests in a single index, sector, theme or commodities. When you buy a unit of an ETF, you invest in the index linked to it.
For those who are afraid of investing directly in the stock market but want to take advantage of the market boom, ETFs can prove to be a better investment option.
(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.) People are often confused regarding their investments like should they invest in mutual funds or shares? For such people, Exchange Traded Fund (ETF) can be a good investment option. Let’s see what is an ETF and how does it work? Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
