The Indian ETF Industry evolved in the year 2001 with the launch of Nifty ETF (Nifty BEES) by the Benchmark Asset Management. The ETF tracked the Nifty 50 Index.
Later in 2003, the pioneer Benchmark Asset management launched a second ETF -the first debt fund ETF in India – Liquid BEES, which helped the conservative investors tap the money markets.
ETFs comprise the combination of the best features of – equities and mutual funds. ETFs have the ease of investing like a stock and you can enjoy the diversification you get from a mutual fund.
ETF is a type of investment wherein you invest in underlying assets like, stocks, Bonds, Commodities like Gold, Global stocks, Indices.
“Think of ETFs as the market’s version of a wolf pack picking off and weeding out the slower and weaker active fund managers in the herd, those with consistently poor returns and high fees.”
A growing number of investors are placing billions of dollars into socially responsible impact investing funds, which are also known as Environmental, Social, and Governance (ESG) funds. … These relatively new ETFs allow investors to achieve diversification while owning companies that follow specific ESG criteria.
Before you begin investing in ETFs, you must be able to identify the right ETFs for your needs. One of the best ways to do this is by analyzing your goals and basing your decisions on the same. As a novice investor, the ideal of establishing goals that are set way ahead in the future might be a bit daunting, but all it takes is a little bit of self reflection and an honest understanding of what you want in life.
