Exchange Traded Funds are basically index funds which are listed and traded on exchanges such as commodities, stocks, bonds that track an underlying index. ETFs have internationally given retail as well as institutional money managers a whole new vignette of investment opportunities.
On the current scenario, ETF has become the most successful and prominent securities in India. An ETF follows passively a benchmark such as the Sensex or Nifty by keeping securities at the same weights as the Nifty / Sensex. ETFs can be traded on the market at any time but you need a demat account to invest in an ETF.

Why ETF is most Popular in India?
ETFs will deliver you lower operating costs in taxable accounts than standard open-end funds, dynamic investing option, greater transparency and increased tax efficiency. Scroll down and get to know the benefits of investing in ETFs.
Trade Flexibility-As ETFs are marketable securities they can be exchanged on licensed stock exchanges. ETF can be borrowed and sold at any point of the day (during trading hours), it is more flexible than other investment products such as mutual funds or PPFs.
Fair Cost- ETFs are insured on the stock exchange and typically have a lower expense ratio than most mutual funds. ETF expense ratio for active equity funds is typically less than 0.5%, which gives you a long time growth option.
Transparency- As the ETF follows the underlying benchmark, the ETF monitoring the Nifty 50 would keep the largest listed companies in the same weight as the Nifty.
Tax Effectiveness- ETF generates relatively low capital gains, since their portfolio securities generally have low turnover
Diversification- In India, ETFs monitor a variety of products including the Nifty, Gold Nifty Next 50, Nifty Low Vol 20 Index and more. Investments in ETFs are broadly diversified, as indexes reflect stock market performance in general.

Top ETFs based on the performance 2020
- ICICI Prudential Banking and Financial Services Fund
- UTI Sensex ETF
- Canara Robeco Gold ETF
- Nippon ETF Bank BeES
- SBI - ETF Gold
- Kotak Sensex ETF
- Invesco India Nifty ETF
- SBI - ETF Nifty 50
- ABSL Nifty ETF
- SBI - ETF BSE 100
- Nippon ETF Nifty 100
- Nippon ETF Infra BeES
- Nippon ETF NV20
- Quantum Gold Fund
- LIC MF ETF - Sensex
- Nippon ETF Sensex
- Kotak NV 20 ETF
- Motilal Oswal Nasdaq 100 ETF
- Reliance ETF Liquid BeES
- SBI - ETF Nifty Bank
- SBI - ETF Nifty Next 50
- Nippon ETF Junior BeES
- Nippon ETF Hang Seng BeES
- Nippon ETF Consumption
- Nippon ETF Dividend Opportunities
- Nippon ETF Liquid BeES
- IIFL Nifty ETF
- Reliance Shares Gold ETF
- Axis Gold ETF
- Invesco India Gold ETF
- IDBI Gold Exchange Traded Fund
- Kotak Gold ETF
- ICICI Prudential Gold ETF
- UTI Gold Exchange Traded Fund
- Nippon ETF Gold BeES
- SBI - ETF Gold
- Birla Sun Life Gold ETF (G)
- HDFC Gold Exchange Traded Fund
- SBI - ETF Nifty Bank
- UTI Sensex Exchange Traded Fund
- HDFC Sensex ETF
- Nippon ETF Long Term Gilt
- Nippon ETF Nifty BeES
- ICICI Prudential Nifty ETF
- ICICI Prudential NV20 ETF
- SBI - ETF Nifty Next 50
- ICICI Pru Midcap Select ETF
- Nippon ETF PSU Bank BeES
- SBI - ETF Nifty 50
- UTI Nifty Exchange Traded Fund
- HDFC Nifty 50 ETF
- Kotak Nifty ETF
- IDFC NIFTY ETF
- SBI-ETF 10Y Gilt
- ICICI Prudential Nifty 100 ETF
- SBI - ETF BSE 100
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