What is an ETF?

Like individual stocks, an exchange-traded fund, or ETF, is a kind of investment fund that is traded on stock exchanges. It contains a variety of assets, including currencies, stocks, bonds, and commodities.

What are the risks involved in ETF investing?

While Exchange Traded Funds (ETFs) offer numerous benefits like diversification, low costs, and liquidity, they are not without risks. It's crucial for investors, especially in India, to understand these potential downsides before investing.

Is the MoneySukh app safe for ETF investing?

Yes, the MoneySukh app is considered safe for ETF investing.

How to start investing in ETFs on MoneySukh?

Steps to start trading in an ETF are

1. First download and then log in to the “MoneySukh Pro” app.
2. To download the application, follow the below link:
   • For Android, Click here
   • For iOS, Click here
   • For Web Application, Click here

1. Then go to the search tab and search for a particular ETF and start trading.

What are the charges associated with ETF investing on MoneySukh?

Like purchasing individual stocks for delivery, investing in ETFs on MoneySukh entails a number of fees. Based on the data from MoneySukh pricing and support pages, the following is a breakdown:

1. Broking Fees for Equity Delivery (including ETFs):

• MoneySukh provides a variety of broking plans.
• They mention "Zero Charges" in one equity delivery plan, which is what ETFs fall under because they are purchased for long-term holding.
• "2.5% or Rs. 10 per executed order, whichever is lower" is mentioned in another plan.

Do I need a Demat account to invest in ETFs?

Yes, you need a Demat account to invest in ETFs (Exchange-Traded Funds) in India.

What is the minimum investment required for ETFs?

ETFs (exchange-traded funds) usually require a minimum investment of just the cost of one unit, which can range from ₹50 to ₹500, depending on the ETF.

Can I use SIP for ETFs?

Yes, you can use Systematic Investment Plans (SIPs) to invest in ETFs, but not in the same manner as mutual funds.

Is there any lock-in period for ETFs?

No, there is no lock-in period for exchange-traded funds, or ETFs.

What are the benefits of ETFs over traditional mutual fund schemes?

The following are the main advantages of exchange-traded funds (ETFs) over conventional mutual fund schemes:

1. Reduced Cost Compared to mutual funds, ratio ETFs typically have substantially lower management fees.
2. You save money because the fund manager isn't trying to outperform the market.
3. Real-Time Trading ETFs, like stocks, can be purchased or sold at any time during business hours.
4. Only at the end-of-day NAV do mutual funds execute.
5. Greater Transparency: ETF portfolios are made public every day, allowing you to always be aware of your holdings.
6. Usually, mutual funds report their holdings on a monthly or quarterly basis.
7. Typically, there is no exit load.
8. If you sell on the exchange, the majority of ETFs have no exit load.
9. For early redemptions, mutual funds frequently have exit loads (especially <1 year).
10. Better Tax Efficiency Because ETF turnover is lower, there are fewer taxable events within the fund.
11. When mutual funds buy or sell stocks, they may internally generate capital gains.