WHAT IS ETF

 

WHAT IS ETF🎯

ETF -Exchange-Traded Fund✨

• It is a basket of securities (like stocks, bonds, or commodities) that you can buy and sell on a stock exchange, just like a normal stock.

•  It works like a mutual fund (because it holds multiple assets),

•  But it trades like a stock (you can buy/sell anytime during market hours).

Example:

• Imagine one ETF contains shares of 50 top Indian companies. If you buy 1 unit of that ETF, it's like you are buying a tiny piece of all those 50 companies in one go.

Simple Story🚀

• Instead of buying rice, wheat, oil separately, you buy one basket that already has everything inside.

•  Similarly, instead of buying TCS, Infosys, Reliance separately, you buy one ETF unit that has all these stocks inside!