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For low-cost and diversified exposure to an asset class, invest in an ETF

Choose the ones that have a low expense ratio but high trading volumes on the exchanges

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ETFs make it very easy to build diversified, asset-allocated portfolios.

Sanjay Kumar Singh New Delhi
The National Stock Exchange (NSE) announced recently that the asset under management (AUM) of Nifty 50 based exchange-traded funds (ETFs) has touched Rs 1 trillion. The AUM of all ETFs (equity and debt) has crossed Rs 2 trillion. Fund managers say they have witnessed rapid increase in the number of investors in ETFs this year, which indicates high interest from retail and high net worth individuals (HNIs) in these products.

Fewer choices to make: By taking exposure to an ETF, investors can circumvent the risk of investing in the wrong sectors and stocks. When the market fell towards the end

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First Published: Sep 22 2020 | 7:15 PM IST

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