Build Your Wealth Smarter with ETFs
Diversify your portfolio effortlessly with Exchange-Traded Funds. Access multiple assets through a single investment and grow your wealth with transparency and low costs.
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What is an ETF?
An Exchange-Traded Fund (ETF) is an investment vehicle that tracks the performance of an index, sector, commodity, or a mix of assets such as equities and bonds. ETFs are traded on stock exchanges just like shares, allowing investors to buy or sell units anytime during market hours. ETFs combine the diversification benefits of mutual funds with the flexibility of stocks, making them ideal for investors who prefer a low-cost, transparent, and efficient way to invest in the markets.
Types of ETFs
ETFs are available in several categories, depending on their underlying assets:
Equity ETFs
Track indices like Nifty 50 or Sensex for exposure to leading Indian companies.
Debt ETFs
Invest in government or corporate bonds, ideal for conservative investors seeking stable returns.
Commodity ETFs
Backed by assets like gold or silver, offering diversification through commodities.
International ETFs
Invest in global markets, providing exposure to international equities and bonds.
How Do ETFs Work?
ETFs pool money from multiple investors to build a diversified portfolio that mirrors a specific index or asset class. Each ETF unit represents a share of that portfolio. Since ETFs are listed and traded on exchanges, investors can buy or sell units just like any stock. They are typically passively managed, meaning the portfolio adjusts only when the tracked index changes. This approach keeps costs low and helps investors gain steady, market-linked returns.
ETFs vs. Mutual Funds
Both ETFs and mutual funds help investors diversify, but they differ in structure and flexibility:
| Feature | ETFs | Mutual Funds |
|---|---|---|
| Listing | Traded on stock exchanges like NSE and BSE | Not traded on exchanges |
| Trading | Bought and sold in real-time during market hours | Processed at end-of-day NAV |
| Liquidity | High, can be traded instantly | Moderate, redemption takes time |
| Cost | Generally lower expense ratio | Relatively higher costs |
Why You Should Start Investing in ETF
Low expense ratio
ETFs have lower expense ratio since they are passively managed. Hence, ETFs investment can be considered for long term investments with minimal cost.
Higher liquidity
ETF are traded on stock exchanges similar to shares. So investors can buy or sell ETFs at real market prices during market hours.
Transparency
ETF disclose their holdings on a daily basis. Owing to this, retail investors can know where their money is invested.
Passive investment management
ETF investment comes in handy for investors in reducing market risk, when compared to individual stock picking.
Benefits of Investing in ETFs with Aetram
Investor-Friendly Demat Account
How to Invest in ETFs with Aetram
Open your free Aetram account and start your ETF investment journey in just a few easy steps.
Register with Your Mobile Number
Complete quick OTP verification to begin.
Complete KYC Verification
Submit your details securely and verify your identity online.
E-Sign with Aadhaar
Activate your account instantly using Aadhaar-based e-sign.
Choose ETFs and Start Investing
Explore top-performing ETFs and invest in a few clicks.
Frequently Asked Questions
Have questions about ETF investing with Aetram? Find your answers below.
Frequently Asked Questions
Have questions about ETF investing with Aetram? Find your answers below.
Open Your FREE Demat Account in Minutes

