Exchange Traded Funds (ETFs) are a hybrid product that combines aspects of stocks and mutual funds. Like stocks, ETFs trade on exchanges throughout the day, while like mutual funds, they comprise a basket of underlying holdings like an index or commodity. ETFs offer investors minimum investment amounts, low costs, and the ability to gain instant exposure to markets or sectors. However, ETFs remain unpopular in India due to a lack of understanding about ETFs, fewer product options compared to other countries, and an inability to automatically reinvest dividends.

1. Exchange Traded Fund --- An Emerging Avenue “ You work the first eight hours of each day for survival. Anything after that is an investment.” ----Thomas Watson

2. ETF- a Hybrid Product ETFs are a mix of a stock and a mutual fund. Like equity shares they are traded on the Stock exchange on real-time basis and Like ‘mutual funds’ they comprise a set of specified stocks e.g. an index like Nifty/ Sensex or a commodity (e.g. gold) ETFs came into existence in USA in 1993. The first ETFs were based on the S&P 500 and are popularly known as SPDRs (Spiders). ETFs have gained prominence over the last few years.

3. Make oodles of money Minimum investment - one unit. Low distribution costs and administrative charges. Authorised Participants. Can be bought/sold anytime during market hours at prices that are expected to be close to actual NAV of the Scheme. Exchange units with the underlying shares. Can be used as a tool for gaining instant exposure to the equity markets. A smart way to take advantage of hot sectors, without having to rely on individual stock picks.

4. Market Players in India Benchmark's BeES ICICI Pru Spice ETF UTI Sunder Kotak Mahindra Gold ETF .

5. ETF’s unpopularity in India Lack of understanding of the concept of ETF among the investors. Generally track an index or industry of stocks, and are not actively managed like a mutual fund. The number of ETF products in the market is less. No automatic re-investment of dividends. Trading in units may be halted because of market conditions, Market Authorities or Market Regulator.

6. D iversify O ptimize trading strategies I nvestment horizon N AV V ery transparent E fficient market hypothesis S ubstantial returns T rading flexibility