1. EXCHANGE TRADED FUND
Submitted To
Prof. RKR
HOD
Dept. of Business Submitted By:
Administration SUJOY KUMAR PAUL (03)
AUS ABHISHEK DUTTA (07)
PRITHWIRAJ DAS (08)
2. EXCHANGE TRADED FUND
• ETFs are essentially mutual fund schemes or index funds that are
listed and traded on the exchange like stocks. ETFs are priced
continually and can be bought or sold through out the trading day.
Buying or selling ETFs is as simple as buying or selling any other
stock on the exchange allowing the investor to take advantage of intra
day price movements.
• ETF can be bought or sold just by a call to the broker or through the
internet trading account. This provides investors the power to react
swiftly to changes in the market and place limit orders while trading.
4. INDEX ETF
• Most ETFs are index funds that hold securities and
attempt to replicate the performance of a stock market
index. An index fund seeks to track the performance of an
index by holding in its portfolio either the contents of the
index or a representative sample of the securities in the
index.
5. COMMODITY ETFS
• Commodity ETFs invest in commodities, such as precious
metals and futures. Among the first commodity ETFs were
gold exchange-traded funds, which have been offered in a
number of countries. The idea of a Gold ETF was first
officially conceptualized by Benchmark Asset Management
Company Private Ltd in India when they filed a proposal
with the SEBI in May 2002.
6. LIQUID ETFS
• Liquid ETFs are funds whose unit price is derived from
Money market securities comprising of government bonds
treasury bonds, call money market etc.ETFs are immediately
tradable; therefore, the risk of price movement between
investment decision and time of trade is substantially less
when ETFs are used in lieu of traditional funds.
7. ETFs V/S Stocks and Mutual Fund
Functionality ETFs Stocks Mutual Funds Unit
Can be purchase through NSE Yes Yes No
broker or online trading account
Ability to put limit orders Yes Yes No
Real time trading and pricing Yes Yes No
throughout market hours
Returns at par with the Yes No No
market/index
8. ADVANTAGES OF ETFS
1. Buy and sell just like share
2. Buy and sell at real time shares
3. One can put limit orders
4. Delivery in your demat account
5. Minimum trading lot just one unit
6. No wealth tax
7. No storage issue or fear of theft
9. HOW TO INVEST
• Resister with your broker
• Fill up the KYC form
• Open a demat account
10. LOG INTO YOUR TRADING
SELECT AN ETF ACCOUNT OR CALL YOUR PLACE ORDER
BROKER
• ETFs are in dematerialized form and settled like any other share the T+2
rolling settlement.
13. WHAT IS THE ETF CREATION/REDEMPTION
MECHANISM?
Brokerage account Cash Cash
Inves tor ETF Authorized Capital Markets
Participants
ETF
Shares Securities
Creation Units Basket of Securities
ETF Fund Advisor
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