Exchange Traded Funds (ETFs) Exchange Traded Funds (ETFs) are mutual funds listed and traded on stock exchanges like shares. Index ETFs are created by institutional investors swapping shares in an index basket, for units in the fund. Usually, ETFs are passive funds where the fund manager doesn’t select stocks on your behalf. Instead, the ETF simply copies an index and endeavours to accurately reflect its performance. In an ETF, one can buy and sell units at prevailing market price on a real time basis during market hours. The Bharat 22 ETF to be offered now allows the Government to park its holdings in selected PSUs in an ETF and raise disinvestment money from investors at one go. It tracks the specially made S& P BSE Bharat 22 Index, managed by Asia Index Private Limited. This index is made up of 22 PSU stocks and with a few private sector companies. Advantages 1. ETFs allow investors to avoid the risk of poor security selection by the fund manager, while offering a diversified investment portfolio. 2. The stocks in the indices are carefully selected by index providers and are rebalanced periodically. 3. ETFs offer anytime liquidity through the exchanges. Basics of Economics series brought to you by Behere Classes, the best commerce classses in Pune (www.behereclasses.com) Best 11th commerce classes in Pune, 11th commerce class in Pune, Commerce classes in Pune city, 12th commerce classes in Pune, 12th commerce class in Pune, best CS foundation classes, CA classes in Pune, 11th 12th commerce classes near me, BBA coaching classes in Pune, BBA classes near me, BCom classes in Pune, BCom classes near me, BBA tuitions near me, BCom tutions near me, commerce tutions near me, Commerce classes near me, best commerce classes near me, CA foundation classes, CS foundation classes, best CA foundation classes