Let’s understand the concept of ETFs by analyzing two different investors.
Anand has invested mostly in Mutual funds , While Shekhar has invested in equities only. Anand wants to have a more diversified portfolio and easy liquidity. Whereas, Shekhar looks for a low cost, low-risk option for his portfolio. Enter Yojak.
Yojak tells them both to start investing in ETFs.
An ETF is a basket of stocks, bonds or commodities, that reflect and follow the composition of a benchmark Index.
ETFs are listed on the stock market and can be bought or sold like stocks throughout the day.
Adding ETFs to your portfolio gives you multiple benefits.
ETFs give your portfolio better diversification.
Making it more risk averse.
The associated costs are low, and can be passively managed.
Plus ETFs offer anytime liquidity.
and are simple to buy or sell, easy to monitor and track.
This combination of desirable traits has made ETFs an increasingly popular tool with investors.
HDFC Securities helps you invest in multiple ETFs basis your risk appetite.