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ETF (exchange traded fund) Definition and Detail explanation fund

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What is eTF (exchange traded traded fund)?

Exchange traded fund (ETF) which follows the Indian stock market includes commodity, currency and all parameters related to Indian stock Market. etf that you buy can be able to to sell on only Indian stock exchange i.e BSE or NSE. ETF Basically buy for diversification that can help to to reduce from huge loss.

If you want to enhance your portfolio then you should need to invest in etf. Price will be change when stock exchange are closed and etf funds are simultaneously follows to stocks which is under the etf. An etf hold multiple assets and stocks that can help to increase your diversification.

ETF contains thousands of stocks across the industries, some ETF are focused like Banking Exchange traded fund are only contains banking stocks the cover the all banking sector and same as the other sectors. There is a various type of etf that can help to increase the diversification, reduce the risk ratio, increase in price and e.t.c. here is a detail information about a types of ETF i.e exchange traded fund.

types of eTFs

A) Inverse ETFs: Fund that you can able to do short selling.

Inverse etf is similar to the short selling, firstly we need to understand that what is the short selling?

when a any particular stock are going down or in negative then investor or trader sell that stock first and when stock goes up then they will buy it and this phenomenon is called short selling.

In Exchange traded fund contain a stocks and on the basis of your fundamental and technical study, if fund is going down within a week then investors select or proffered a Inverse ETFs.

B) Currency ETFs: Fund that help you to beat the inflation rate.

Currency ETF is same as the stock and other etf types. In Currency ETF containing domestics and foreign currencies and those you can track from multiple applications. Currency ETF is very volatile and based on political and economical situation. Investing in Currency ETF may help you to beat the inflation rate and also to diversify your portfolio.

C) Commodity ETFs: Fund That invests in commodity market without buying physically.

Gold, silver, crude oil, metal, soya e.t.c this are the elements of commodity market and the price variation of this commodity market is based on importing exporting business. Investing in commodity market help you to diversify your portfolio and second advantage of investing in commodity fund is you does not need to buy gold or silver you just have to invest in commodity exchange traded fund.

D) industry eTFs: help you to diversify your portfolio.

There is lots of sectors are well performing in India and its very difficult to analyze each and every sector so, ETF helps you to choose best and well performing industry on your interest with fully analysis with top of the best fund managers and their team managements. In Industry ETFs containing stocks of the particular industry for example if you choose IT Sector for your Investment The All ETFs regarding to the IT sectors will help you to choose your best Fund.

E) Stock ETFs: containing stocks of the particular industry.

If you want to buy multiple shares in percentage the Stock ETFs may help you to pick a best ETFs regards to the stocks of the particular Industry. Stocks ETFs tracks the domestic and foreign markets on basis of their Interest. Stock ETFs are low risky and very diversify. Due to diversification, your portfolio make more cozy and spacious. Stock ETFs also enhanced your portfolio to make more boost in your annual CAGR (Compounded Annual Growth Rate).

F) Bond ETFs: Low Risk, Low Return.

After a retirement most of the people are choose to take low risk and due to this they preferred to invest their money in FD’s or in bonds but Bond ETFs are the very good and also excellent choice for the person who want to take low risk and safe investment. Bond ETFs Includes gov. bonds, corporate, state and local bonds.

ETF (exchange traded fund) Definition and Detail explanation fund

Share Market for beginner

If your new in share market and wants to explore more about it, then subscribe to my youtube channel ‘FINNOEXPERT’ where i upload videos about share market and global affaire. Here is few concepts about share market.

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