Mutual Fund

#2
An exchange traded fund is an investment fund that can be traded in the stock exchange much like stocks. An ETF is unlike most conventional mutual funds.They also maintain the feature of ordinary stock like short selling.You can invest in ETF through number of mutual funds like Reliance mutual funds,ICICI,HDFC.
 
#3
Exchange-traded funds (ETFs) are securities that closely resemble index funds, but can be bought and sold during the day just like common stocks. These investment vehicles allow investors a convenient way to purchase a broad basket of securities in a single transaction. Essentially, ETFs offer the convenience of a stock along with the diversification of a mutual fund.

Whenever an investor purchases an ETF, he or she is basically investing in the performance of an underlying bundle of securities -- usually those representing a particular index or sector. Unit Investment Trusts (UITs) are often organized in the same manner. However, the unusual legal structure of an ETF makes the product somewhat unique.
 

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