Akshay Sharma
Quick Summary
ETFs (Exchange Traded Funds) are passive investment vehicles. They provide direct investment exposure to underlying indexes or commodities such as silver, gold, etc. The Securities and Exchange Board of India (SEBI) requires an ETF to invest at least 95% of its assets in securities in the underlying
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FAQ :
ETFs are passive investment vehicles that provide direct investment exposure to underlying indexes or commodities, such as silver or gold. They are traded on stock exchanges like ordinary equity shares.
ETFs offer several advantages to investors, including portfolio diversification, ease of investing, simplicity in understanding, and the potential reduction of unsystematic risks.
The most common types of ETFs include Equity ETFs that track equity indexes, Debt ETFs that invest in debt indexes, and Commodity ETFs that invest in physical commodities like gold and silver.
Returns from selling ETF units are taxed as Capital Gains. Equity ETFs are taxed like equity-oriented funds, while international equity ETFs, debt ETFs, and commodity ETFs are taxed as non-equity-oriented funds, with rates depending on the holding period.
Yes, international equity ETFs invest in global equity shares that are part of international stock indices, allowing investors to gain exposure to global markets.
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