| Exchange Traded Funds (ETF) | | | | portfolios. Eg. Benchmark Goldbees fund replicates |
| ETF or Exchange Traded Funds are securities that | | | | the NAV as 1 gram of Gold, hence you can |
| are traded as stocks on the stock exchange. An | | | | purchase one gram of gold in demat form by |
| ETF holds assets such as stocks or bonds and | | | | buying 1 unit of this fund and paying the |
| trades at approximately the same price as the | | | | brokerage like any other equity purchase. This |
| net asset value of its underlying assets. Most | | | | charge would be much lesser than the packing |
| ETFs track an index. | | | | and bill charges that you pay to a goldsmith for |
| They offer the advantages of mutual funds while | | | | purchase of a 1 gram gold coin.ETF funds are |
| being traded as stocks in the secondary market | | | | low-cost securities flexible than mutual funds as |
| and can be bought and sold like any other stock. | | | | they charge lower annual expenses than index |
| Individual investors having a demat account can | | | | mutual funds. They first came into existence in |
| trade in such funds. | | | | the USA in 1993. |
| ETF funds are available in different forms and can | | | | ETF in India listings include gold, silver and |
| be selected as per the requirements. These | | | | currencies. ETF funds are a new alternative to |
| include ETF bond funds, ETF Gold funds and many | | | | investing in mutual funds as they also minimize the |
| more forms. | | | | risk involved in the investment in other finance |
| The prices at which they trade are roughly in line | | | | solutions. Exchange traded fund lists have been |
| with the net asset values of their underlying | | | | increasing in India since their inception. |