Some of these schemes include balanced funds, small cap funds, mid cap funds, large cap funds , sector-specific funds, thematic funds, amongst others.One such product that is quite popular is an index exchange traded fund or index ETF. An index ETF aims to mimic the underlying index, thereby providing investors with the possibility to garner the same returns (in most cases marginally better) as the index over the long term. For example, an ETF based on the Sensex would invest in all of the 30 stocks that form the Index in the same weightage as that of the index. Thus, investor transacts at real-time prices.They provide a relatively low ticket size option for investing in a bucket of stocks. This figure for the Nifty would be higher as there are 50 companies as part of the index.We believe investing in Index ETFs broadly has three key benefits.

Source: Economic Times August 06, 2017 05:26 UTC