Description: ETFs were started in 2001 in India. They comprise a portfolio of equity, bonds and trade close to its net asset value. These funds mainly track an index, a commodity, or a pool of assets. There are more than 50 ETF's trading in the NSE To draw the distinction, let's consider mutual funds, index funds and ETFs separately. 1. What is a mutual fund Once upon a time, only sophisticated investors had enough capital to justify hiring professional help. Now, a much larger number of investors of much more modest incomes seek a return. Mutual funds rely on a professional adviser to actively manage investments on behalf of others, at a fee. The hope is that active management can take advantages of trends in the market or informational discrepancies to "beat" the overall market return. 2. What is an index fund In 1976 the first index fund was launched by the investment firm Vanguard Group. It was known as "Bogle's Folly," ...
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