Exchange Traded Funds (ETFs)
What is Exchange Traded Fund ?
Mutual funds can be categorized into two types of funds :
- Active Funds
- In active funds , we have an experienced fund manager and a management team
to make decisions on the amount collected from investors. For example,
- Mirae Asset Large Cap Fund - Fund Manager - Gaurav Misra & Harshad Borawake
- Parag Parikh Long Term Equity Fund - Fund Manager - Rajeev Thakkar & Raj Mehta
- Passive Funds
- In passive funds, they follow a market index and do not have a fund manager who actively
manages the portfolio. For example,
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SBI ETF Nifty 50 - Largest ETF in India with an overall AUM of 75,000 crores and this fund tracks the Nifty 50 . Expense ratio is 0.07%
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