What is ETF in Share Market

An ETF (Exchange-Traded Fund) is a type of investment fund that is traded on stock exchanges, just like individual stocks.

Here’s how it works:

Basket of Securities: An ETF holds a collection of assets like stocks, bonds, commodities, or a mix of these.

Traded Like a Stock: You can buy and sell ETFs throughout the trading day at market prices.

Diversification: By investing in one ETF, you get exposure to many underlying assets, which spreads your risk.

Lower Costs: ETFs generally have lower fees than mutual funds.

°Popular Types:Index ETFs: Track a specific index like Nifty 50 or S&P 500.

Sector ETFs: Focus on a particular industry like technology or healthcare.

Commodity ETFs: Invest in commodities like gold or oil.

Example:If you buy a Nifty 50 ETF, you’re essentially investing in all the 50 companies in the Nifty 50 index through a single trade.

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