New Delhi: How expensive is ETF investment? When you invest in a market-related scheme, there is some cost involved. How much this cost will be depends on the category of the scheme. Exchange traded funds (ETFs) are a low-cost investment. ETF is a passive fund whose expense ratio i.e. the annual fee for managing the fund is lower than that of active funds.
Since these funds track a benchmark index, the fund manager does not play any special role in managing it. Being a passive fund, its cost is low. According to the website of the Association of Mutual Funds in India (AMFI), the annual fee for managing an ETF can be less than 0.20 percent, while in comparison, the cost of managing some active fund schemes remains above 1%.
For example, if you invest Rs 100 in ETF, its annual interest will be 50 paise. In this way you can get more exposure in your investments at less expense.
(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 is a low cost investment. Its expense ratio i.e. the fees charged for managing the fund is less than active mutual funds. How can a low-cost ETF benefit you? Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
