What are Exchange Traded Funds? Should you invest in them? | Chahal Verma | SKY Learn | HDFC SKY

Описание: In this video I will be talking about Exchange traded funds (ETFs)

I will be discussing how it’s a great investment specially for beginners.

Starting from basics, what are ETFs? They are investment funds traded on stock exchanges, similar to stocks. They are designed to track the performance of indices like Nifty 50, sectors, or commodities, offering a simple way to diversify your investments.

Next, I will be discussing in the video how are they created and managed and how well they are treated? It is created by an issuer who gathers the assets and put them into funds. These funds are then divided into shares that are sold to the investors. It’s traded on exchange market throughout the day like any regular stock. They are managed by professionals who handle the buying and selling of the assets within the fund to track the performance of specific index sectors or an asset class.

Why are they an amazing choice for a beginner?

Diversification, by investing in them you are getting exposure to a wide range of assets!
lower cost
⁠transparency
⁠liquidity
⁠Ease of use

There are many types of ETFs depending on your preference of investments.

Such as Stock ETFs, bond ETFs, Sector and Industry ETFs , international ETFs etc.

Then lastly, I will be discussing step-by-step guides as how to begin your investment journey, get benefits of building portfolios and the magic compounding.

To explore more investment options in ETFs, download HDFC SKY app. The link is here.