What are Debt ETFs and their advantages? Check listed Debt ETFs on NSE - Important points investors must know
The stock market enthusiasts, who are looking for investment opportunities, must be aware of Exchange Traded Funds (ETFs).
The stock market enthusiasts, who are looking for investment opportunities, must be aware of Exchange Traded Funds (ETFs). The National Stock Exchange (NSE) has recently tweeted about Debt ETFs from its official Twitter handle. The interested individuals can know details about ETFs by logging in to the official website of NSE at nseindia.com.
See Zee Business Live TV Streaming Below:
What are ETFs?
Before coming to debt ETFs, one needs to understand what are ETFs. ETFs like baskets of securities (Indices) that are traded, like individual stocks, on an exchange, as per the NSE website. Unlike regular open-end mutual funds, ETFs can be bought and sold throughout the trading day like any stock. ETFs have lower cost of transactions and annual changes compared to index funds. ETFs are considered a safer product for risk-averse and first-time investors who want market linked returns.
"Of the ETF's available on NSE today we understand Debt ETFs. If you found this useful, don't forget to share it with a fellow stock market enthusiast," the tweet from NSE said.
Of the ETF's available on NSE today we understand Debt ETFs.
If you found this useful, don't forget to share it with a fellow stock market enthusiast.#NSE #LearnWithNSE #ETFs #DebtETF #ExchangeTradedFunds #StockMarket pic.twitter.com/nW5g7371VT— NSEIndia (@NSEIndia) January 26, 2022
Debt ETFs are simple investment products that allow the investors to take an exposure to the fixed income securities. These debt ETFs combine the benefits of debt investments with the flexibility of stock investment and the simplicity of mutual funds. These Debt ETFs trade on the cash market of the National Stock Exchange, like any other company stock, and can be bought and sold continuously at live market prices.
Debt ETFs
The debt ETFs are passive investment instruments that are based on indices and invest in securities in same proportion as the underlying index.
Also, because of its index mirroring property, there is a complete transparency on the holdings of an ETF. Furthermore, due to its unique structure and creation mechanism, the ETFs have much lower expense ratios as compared to mutual funds.
The interested investors can check the full list of the debt ETFs that are listed on NSE by logging in to the official website of NSE at nseindia.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
04:41 PM IST