EXCHANGE TRADED FUND

ETFs
A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold. Buying and Selling ETFs Can Be Good for the Small Investor. SPDRs, ishares, VIPERs, Nifty Bees, Bank Bees, UTI Gold Exchange Traded Fund, SBI Gold ETF, Tata Gold ETF, Liquid Bees, Gold Bees, SBI Gets.

Advantages
Buy and sell just like a share Buy and sell at real time prices One can put limit orders Minimum trading lot just one unit Provides Diversification No Exit Load The only costs for an investor are brokerage commissions, management fees and taxes

How to Invest in ETFs

Trading in Gold ETF is very simple. It is similar to how you trade in equity shares. You can trade from your existing trading account with your broker or register yourself with a broker having membership of the NSE, fill up the KYC form, open a demat account, post margins and then commence trading.
Select an ETF Log into your Trading A/c or call your NSE broker Place an order

ETFs are in dematerialized form and settled like any other share in the T + 2 rolling settlement.

ETFs v/s Stocks & Mutual Fund Functionality ETFs Stocks MF Unit
Real time trading and pricing Yes throughout market hours Ability to put limit orders Yes Can be purchase through NSE broker Yes and/or online trading a/c Can be traded real time on the NSE Yes Is Arbitrage possible between Futures Yes and Cash Market Is Diversification possible with a single Yes unit Returns at per with the market/index Yes Intra day trading Yes Paper Less investing Yes Exit Load No Yes Yes Yes Yes Yes No No Yes Yes No No No No No No Yes No No No Yes

GOLD ETF
Gold ETFs are units representing physical gold. To keep Gold as part of your portfolio invest in Gold ETFS. Buy a Gold ETF and you can sell them to purchase jewellery or other forms of gold when you desire. No storage issues & fear of theft. No wealth Tax

Liquid ETF
Liquid ETFs are funds whose unit price is derived from Money market securities comprising of government bonds, treasury bonds, call money market etc. The fund seeks to deliver reasonable through portfolio of debt and money market instruments. Park ideal cash between two trades. Can be used as cash equivalent margin for NSE Cash segment and Derivative segment with 10% cut.

Commodity ETF
An exchange traded fund that invests in commodities, such as precious metals or agricultural products, oil. commodity exchange traded funds are index funds, they track non-securities indices. Investors can make profits from movements in a variety of commodities. Commodity ETF is prone to short term speculation. These ETFs mirror the actual price of the commodity.

Other ETFs
Currency ETF Oil ETF Bond ETFs Actively managed ETFs: Exchange-traded grantor trusts Hedge Fund ETFs Leveraged ETFs Sector ETFs Sector

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