Planning to invest in ETFs? Know different types of Exchange Traded Funds and other details

ETFs: Those who are planning to invest must note that Exchange Traded Funds (ETFs) are an excellent investment product for all types of investors. A prospective investor must also know that ETFs are also cost efficient. One can login to the official website of the National Stock Exchange (NSE) at nseindia.com for further details.

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Recently, NSE India has tweeted about the types of ETFs available on the NSE from its official Twitter handle. The tweet said, "In today's post, we understand the types of ETF's that are available on the NSE. If you are considering investing in ETFs, this might help you understand the product a little better."

In today's post, we understand the types of ETF's that are available on the NSE. If you are considering investing in ETFs, this might help you understand the product a little better. #LearnWithNSE #ETF #NSEIndia #NSE pic.twitter.com/IPFbAjhoTU

— NSEIndia (@NSEIndia) December 5, 2021

As per the NSE website, in recent times, ETFs have gained a wider acceptance as financial instruments whose unique advantages over mutual funds have caught the eye of many an investor. These instruments are beneficial for investors that find it difficult to master the tricks of the trade of analyzing and picking stocks for their portfolio. Various mutual funds provide ETF products that attempt to replicate the indices on NSE, so as to provide returns that closely correspond to the total returns of the securities represented in the index. ETF's available on NSE are diverse lot. Equity, Debt, Gold and International Indices ETFs are available.

The interested investors must note that the ETFs available on NSE are a diverse lot. They are as follows:

1) Equity ETF - Equity ETFs are simple investment products that combine the flexibility of stock investment and the simplicity of equity mutual fund.

2) Debt ETF - Debt ETFs are simple investment products that allow the investors to take an exposure to the fixed income securities.

3) Gold ETF - Gold ETFs are simple investment products that combine the flexibility of stock investment and the simplicity of gold investment.

4) International ETF - Global ETFs are simple investment products that allow the domestic investors to take an exposure to international indices.

Due to the unique structure of ETFs, all types of investors, whether retail or institutional, long-term or short-term, can use it to their advantage. They allow long-term investors to diversify their portfolio at one shot at low cost and insulate them from short-term trading activity due to the unique "in-kind" creation/redemption process.

In case of further details, the interested individuals can login to the official website of NSE at nseindia.com.