If you are looking to invest in stocks but don’t have the time and research capabilities to choose the appropriate stocks for your portfolio, ETFs are a great saviour! ETFs help you participate in the stock market with much more ease than investing in individual stocks without compromising liquidity. They offer greater diversification at lower cost compared to direct stock investing.
An ETF or Exchange Traded Fund is a type of mutual fund listed on the stock exchange and can be traded in real-time like any other stock listed on the exchange. Since ETFs are a type of mutual fund, their portfolio comprises of a basket of securities that mirror the composition of a market indices. Thus, you get to invest in selected stocks that are part of a
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