Reasons to invest in ETFs and not Mutual Funds

[simranlalia1]

Earlier i used to trade a lot in mutual funds but since the time i came to know about ETFs and the benefits it has to offer I have kind of stopped trading in MF....Infact its quite some time now....

Trading in ETFs like Gold BeES and Nifty BeES has really given a boost to my portfolio.

ETFs offer an almost limitless variety of options including basic indexes, different styles and a wide variety of sectors to achieve any level of diversification you want. ETFs are optionable for traders interested in options trading

also since An ETF trades like a stock and so you get continuous pricing throughout the day and the chance to buy or sell throughout the day compared to the inflexibility of end-of-day pricing for mutual funds.

another advantage is that ETFs can be sold short like a stock which isnt possible with mutual funds also you can exit or enter during the trading day.
and they also have a much lower expense than mutual funds and no management fees at all :thumb:

My personal bet would be that if you can get so many advantages out of an ETF such as Gold BeES or even Nifty BeES, why should i invest in a Mutual Fund?

 

[munde_77]

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earlier i used to trade a lot in mutual funds but since the time i came to know about etfs and the benefits it has to offer i have kind of stopped trading in mf....infact its quite some time now....

trading in etfs like gold bees and nifty bees has really given a boost to my portfolio.

Etfs offer an almost limitless variety of options including basic indexes, different styles and a wide variety of sectors to achieve any level of diversification you want. Etfs are optionable for traders interested in options trading

also since an etf trades like a stock and so you get continuous pricing throughout the day and the chance to buy or sell throughout the day compared to the inflexibility of end-of-day pricing for mutual funds.

Another advantage is that etfs can be sold short like a stock which isnt possible with mutual funds also you can exit or enter during the trading day.
And they also have a much lower expense than mutual funds and no management fees at all :thumb:

My personal bet would be that if you can get so many advantages out of an etf such as gold bees or even nifty bees, why should i invest in a mutual fund?

 

[d2thdr]

ETF's are known to not have real assets backing them. For eg. the iShares GLD and SLV ETF's listed on LSE have been shown to not have real physical stuff backing them. Can it be any different in India?

EPRANAREIT ETF which invests in golbal property for eg, bases its valuation on the locally perceived value of the property, and unfortunately all are backed by USD which is presently in a free fall. I personally do not like ETF and have been reading about them extensively and hence have come to this conclusion.

Best wishes.

 

[manalisharma12]

To invest in ETF is no doubt a great choice but still you need to make the right choice in there too.

In my personal opinion people should put there money in something which gives them a higher return on their investment. I think Gold BeES is the way to go for that

 

[d2thdr]

To invest in ETF is no doubt a great choice but still you need to make the right choice in there too.

In my personal opinion people should put there money in something which gives them a higher return on their investment. I think Gold BeES is the way to go for that

Never trade gold. Gold is the currency of last resort. it is the currency of free and idle. If you want to trade gold, hold some physical stuff. Bullion or coins. Gold is not an investment, it just protects the value of your money. Remember 1 oz of Gold bought a well to do Roman senator a good toga, a good pair of sandals and a good head gear. The same 1 oz of Gold today will buy you the best suit from Raymond with a best pair of hand made leather shoes and a very posh leather suitcase. See over 3000 years the value of gold has remained unchanged.

I would hedge my strategy in buying gold miners stocks and/or mutual funds who have international exposure in Gold/precious metals.

My personal opinion is Gold is excellent. But Silver has much more upside potential. remember historical Gold:Silver ratio is 1:20. Presently Gold is 1036$. Silver is 17.50$.

 

[rajsekarm]

Hi All,

I am new to ETF shares traded in stock exchange. Can some one let me know the answers for the following queries.
1) What is the percentage of wealth tax we need pay
2) When to money will deducted for wealth tax and who will deduct the money?

Regards,
Rajasekar M

 

[manalisharma12]

Hi All,

I am new to ETF shares traded in stock exchange. Can some one let me know the answers for the following queries.
1) What is the percentage of wealth tax we need pay
2) When to money will deducted for wealth tax and who will deduct the money?

Regards,
Rajasekar M

Hi Rajasekar,

One of the benefits of investing in Gold BeES is that you dont need to pay wealth tax and also you can use the benefit of long-term capital gains after 1 years instead of 3 years if you are holding physical Gold.