No, we do not support ETF investments, since we need to tie up with brokers for it. ETFs are currently not efficient as investors today overpay/undersell their investments by 1% due to poor exchange liquidity. In light of these inefficiencies, Index funds
are a better value proposition. Other differences between ETFs and Index Funds can be found in this article
Some other frequently asked questions about ETFs are as follows:
I have a Demat account. Comparing ETFs with Index funds in terms of Cost (TER), is it good idea to split some of my investments?
ETFs are lower in Cost (TER), but the holding cost of ETFs is a lot higher than Index funds today. Investors pay STT + Brokerage + liquidity costs on the exchange which increases the cost of buying ETFs significantly. There are no STT, brokerage and liquidity costs associated with Index funds.
Do recent changes in the Expense ratio of Index funds make ETF a better alternative to index funds for the long term?
Recent changes are very small in nature. The cost of buying ETFs on the exchange is a lot higher.
How about liquidity and Price-NAV deviations in ETFs? People say these 2 points are negative factors for ETFs. But are they cheaper cost-wise?
That is right. Cost is not as relevant for investors buying ETFs. It's exchange liquidity + price which matters most.
What's your view on All-weather investing in smallcase (which invest in Equity, Debt, Gold ETFs)?
It's a good smallcase for investors who are looking for a portfolio solution. Motilal Oswal Asset Allocation Passive Funds are also very similar (investors can buy all asset classes in one single fund).
How to Redeem Glide Coins ?
Glide Coins are virtual coins that investors earn for healthy investing habits. Once an investor exhibits these healthy investment habits, and earns a certain no of Glide Coins into their account, they can redeem them for cash rewards back into the ...
How can I switch my investments from one fund to another?
When you move your investments from one mutual fund to another fund within the same AMC, it is termed as a Switch. Switching is only allowed within funds of the same AMC. In a switch transaction, the AMC first sells your units from the original fund ...
I have emailed my CAS report but my investments are still not reflecting?
There can be multiple reasons for the same: You have sent the wrong CAS report, namely, a report generated from CAMS, NSDL or CDSL. We only accept CAS generated from KFintech. The password provided is incorrect and the system is not able to access ...
What are the major differences between Index Funds vs ETFs?
While both Index Funds & ETFs are similar in their function, they tend to differ in operational and execution characteristics. ETFs as their name suggests are traded on their exchange in real time whereas Index funds like typical mutual fund are not. ...
Why should you invest in index funds?
Low Cost: Since index funds are passively managed, the total expense ratio (TER) is very less as compared to the actively managed ones. While an actively managed fund may charge you anything between 1-2% as TER, an index fund would typically charge ...