ETFs

Why Is ETF Market Price Different from NAV

6 minutes

When you first look at an ETF, the price on the exchange can feel like the only number that matters. Then you notice another figure, the NAV, and the two may not always match. That difference is normal. It does not mean something is wrong with the fund. It simply means one price is coming from live trading, while the other is based on the value of the underlying holdings after they are measured and counted. Once you understand that split, ETF investing becomes much easier to read.

What Is Digital Gold and How It Works

4 minutes

Since times immemorial, gold has enjoyed a special status in Indian culture. It is not just treated as a precious metal but also an auspicious keepsake. Over the centuries, the way to invest in gold has evolved––be it traditional forms of physical gold like coins and ornaments to modern financial options like gold ETFs and sovereign gold bonds. In recent times, digital gold has emerged as a popular avenue among Indian investors.

How to Invest in Exchange Traded Funds (ETFs)?

4 minutes

Exchange Traded Funds (ETFs) are financial products which provide direct investment exposure to benchmark indices and commodities. As per the SEBI Guidelines, an ETF must deploy at least 95% of its assets in securities of the underlying index.  ETFs undertake passive investing, and the fund managers replicate the underlying index and implement changes in the investment portfolio as and when the changes happen in the index constitution.

Advantages & Disadvantages of investing in Exchange Traded Funds (ETFs)

4 minutes

Exchange Traded Funds (ETFs) are passive investment options that offer direct investment exposure to underlying indices or commodities like silver, gold etc. As per SEBI Guidelines, an ETF must deploy at least 95% of its assets in securities of the underlying index.

Fund managers are mandated to track the specified index and implement changes in the investment portfolio as and when the changes happen in the index constitution. They cannot go beyond the index composition or their respective weights.

Advantages of Exchange Traded Funds