new Delhi. More people are now investing in the stock market, mutual funds and exchange traded funds (ETFs). This is the reason why the scope of ETFs is increasing. Many ETFs have been launched in the year 2022 as compared to the year 2021. Investing in ETFs can be a better option for better returns in investment.
According to Bloomberg data, there were 50 new fund launches in 2022, compared to 38 fund launches at this time last year. Jane Edmondson, CEO of EQM Capital, said the number of ETFs has jumped this year.
Edmondson said, “The large number of new ETFs launched this year compared to last year were due to lack of demand. He further said that investors are preferring to adopt Marketplace ETFs as compared to Mutual Funds.
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There are many types of ETFs in the market
There are generally five types of ETFs available in the Indian market, Gold ETF, Index ETF, Bond ETF, Silver ETF and International ETF.
ETFs are bought and sold in the stock market like stocks. To buy ETFs, you need to open a demat account through your broker. The price of an ETF can move up or down in real time. This is in contrast to the unit price of a mutual fund, which is settled at the end of only one trading session.
Know about short term and long term investments
Investments made in non-equity ETFs like gold and international ETFs with a tenure of less than 3 years are considered as short term investments, while investments made for more than 3 years are considered as long term investments. STCG of non-equity ETFs is taxed at a nominal rate. LTCG of non-equity ETFs is taxed at 20% with indexation benefit.
Tags: business news in hindi, ETF
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