ETF
A fund that copies an index and trades on the stock exchange like a share, so it needs a demat account.
ETF stands for Exchange Traded Fund. Like an index fund, it tracks an index at low cost, but you buy and sell it on the stock exchange during market hours, at a live price, through a demat account. A regular index fund, by contrast, is bought from the fund house at the day’s NAV and needs no demat account. Both are low-cost, passive ways to own the whole market.
Questions people ask
What is the full form of ETF?
ETF stands for exchange traded fund. It tracks an index at low cost, like an index fund, but you buy and sell it on the stock exchange during market hours through a demat account.
What is the difference between an ETF and an index fund?
Both track an index cheaply. An ETF trades on the exchange at a live price and needs a demat account; a regular index fund is bought from the fund house at the day's NAV and needs no demat account.
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