Investing in Exchange traded Funds (ETF's)

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(20/2/2015 StockInvestingTips ETF investing series) - Exchange Traded Fund's or ETF's are investing tools which are professionally managed by Mutual funds companies in India, I have already posted about Exchange Traded funds in my previous article titled
"Investing in ETF's and calculation of NAV". In this article I would give details about type of Exchange traded funds available in India and how they function. What are different companies which provide fund management for ETF's in India. Exchange traded funds can be traded through trading terminals present across the country. ETF's are closer to Mutual funds trading ie you have to know Net Asset values of ETF's as in case of Mutual Funds investing. You can invest small amount of money per month in Exchange traded funds

Broadly there are 3 types of Exchange traded Funds:
1)Gold ETF
2)Liquid ETF
3)Equity ETF

Gold Exchange Traded Funds(GETF): Many exchange traded funds invest there money in gold markets/indices. These funds track the price of gold and companies which specialize in gold offer gold Exchange traded funds. Generally returns of investment from Gold ETF's can be tracked by the rise in gold prices in bullion market.

There are various Gold ETF's which are listed on National Stock Exchange and Bombay Stock Exchange. Some of the Gold ETF's which are traded on NSE and BSE are as follows:(If any one wants to start investing in gold ETF then he can track any of following fund and measure NAV value for each of the fund)

Sr No.	Gold ETF name	Index Symbol	Parent Fund
1	Reliance Gold ETF	RELGOLD	Reliance Mutual Fund
2	SBI Gold ETF	SBIGETS	SBI mutual Fund
3	Birla Sun life Gold ETF	BSLGOLDETF	Birla Sun Life Mutual Fund
4	Axis Gold ETF	AXISGOLD	Axis Mutual Fund
5	UTI Gold ETF	GOLDSHARE	UTI Mutual Fund
6	HDFC Gold ETF	HDFCMFGETF	HDFC Mutual Fund
7	Kotak Gold ETF	KOTAKGOLD	Kotak Mutual Fund
8	Religare Gold ETF	RELGOLD	Religare Mutual Fund
9	ICICI Prudential Gold ETF	IPGETF	ICICI Prudential Mutual Fund
10	Goldman Sachs Gold ETF	GOLDBEES	GoldMan Sachs Mutual Fund

Equity Exchange Traded Funds (EETF): Equity Exchange traded funds are closed funds which specialize investing money in particular index of a stock market like BSE SENSEX, Midcap ETF, Smallcap ETF etc. Return of investment in Equity ETF's can be tracked by movement of the particulat index over time. Some of the Equity Exchange Traded Funds often make investments in Index on basis of weightage of a particular component. These funds can be purchased or sold in real time. There are numerous EETF's which are traded on both NSE and BSE daily.
Some of the major EETF trading on indian stock markets are as follows:

Sr No.	Equity ETF name	Index Symbol	Parent Fund
1	ICICI Prudential CNX 100 ETF	ICCNX100	ICICI Prudential Mutual Fund
2	Birla Sunlife NIFTY ETF	BSLNIFTY	Birla Sun Life Mutual Fund
3	Kotak PSU bank ETF	KOTAKPSUBK	Kotak Mahindra Mutual Fund
4	Goldman Scahs Infrastructure ETF	INFRABEES	Goldman Sachs Mutual Fund
5	MoSt Shares M50	M50	Motilal oswal Mutual Fund
6	Kotak SENSEX	-	Kotak Mahindra Mutual fund
7	GoldMan Sachs Nifty junior fund	JUNIORBEES	Goldman Sachs Mutual fund
8	Goldman Sachs NIFTY shariah index ETF	SHARIAHBEES	Goldman Sachs Mutual Fund
9	R Shares CNX 100 Fund	RELCNX100	Reliance Mutual Fund

Liquid ETF: liquid Exchange traded funds are money market exchange traded funds. there are very few companies which have theri Liquid ETF's in market. One of the Liquid ETF available is LIQUIDBEES from Goldman Sachs Mutual fund. Companies which manage these liquid ETF's invest the money in call money, short-term government securities and money market instruments of short and medium maturities.

All of the ETF's come with the market fluctuation risks, They are similar to Mutual funds with minor differences as NAV for ETF are not calculated on daily basis. investors can invest in ETF's on similar lines as they do in SIP.

HAPPY INVESTING!!
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