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Equity Index ETFs

What is Equity Index ETF?

Equity Index ETFs invest in stocks of underlying Index and attempt to
replicate the performance of the Index. Index ETFs can cover broader
market indices or a Sector indices or a Specific class of indices like Nifty
Junior. For example Nifty BeES tracks the Nifty Index. ETFs can also track
foreign indices. E.g. Hang Seng BeES tracks the Hang Seng index or MOSt
Shares NASDAQ 100 which tracks the NASDAQ 100 index.

How does one trade ETF's?

ETF's can be bought / sold just like stocks through trading terminals
anywhere across the country.

What is load structure?

Entry Load : NA
Exit Load : Nil
Expense ratio : As applicable; varies across AMCs.
The range is 0.5% - 1.5%.

ETFs only incur capital gains taxes when the fund is sold. Due to their construction. capital gain taxes are incurred as the shares within the fund are traded during the life of the investment. What are investor requirements to invest in Equity Index ETFs? ? Demat account ? Trading account with a stock exchange broker What are the tax implications? The biggest advantage an ETF has over a mutual fund is the tax benefit. In a mutual fund. ETFs v/s Stocks & Mutual Funds: Particulars ETFs Stocks Mutual Funds Real-time trading & pricing throughout Yes Yes No market-hours Ability to put limit orders Yes Yes No Can be traded real-time Yes Yes No Is arbitrage between cash & future market possible Yes Yes No Is diversification possible with a single unit Yes No Yes Returns at par with market/index Yes No No Intraday trading Yes Yes No Exit Load No No Yes .

Arbitrage Intra-Day Trading Not possible Expensive Possible at low cost ETFs Vs Futures: Particulars ETFs Futures Invetment Size required Much smaller (1 units) Comparatively bigger (1 lot size) Cost Low High Risk Comparatively Low High Holding period Unlimited Limited . Significant Premium / Very close to actual if any Discount to NAV NAV of Scheme Availability Fund itself Through Exchange Through Exchange where where listed listed / Fund itself. Hedging. Portfolio Disclosure Monthly Monthly Daily/Real-time Uses Equitising cash Equitising cash Equitising Cash.ETFs Vs Mutual Funds (Close Ended Fund and Open Ended Fund): Particulars Open Ended Closed Ended Exchange Traded Fund Fund Fund Fund Size Flexible Fixed Flexible NAV Daily Daily Real Time Liquidity Provider Fund itself Stock Market Stock Market / Fund itself Sale Price At NAV plus load.

303.96 Hang Seng BeES 590113 HNGSNGBEES 2. SSL Research .96 QUANTUM INDX 590110 QNIFTY 91. Qty.022.490.40 Motilal Oswal MOSt Shares NASDAQ 100 533385 N100 4.100.49 REL BANK ETF 590105 RELBANK 282.30 PSUBNKBEES 590108 PSUBNKBEES 2. Qty.* Motilal Oswal MOSt Shares M50 ETF 590115 M50 205.42 * Daily Avg.587.94 BANKBEES 590106 BANKBEES 3.63 SHARIABEES 590109 SHARIABEES 379.48 NIFTYBEES 590103 NIFTYBEES 94.492.45 KOTAK NIFTY ETF 590112 KOTAKNIFTY 3.30 KOTAK PSU BK 590107 KOTAKPSUBK 11.Equity Index ETFs in India: Particulars BSE Code NSE Symbol Daily Avg.200.428.54 JUNIORBEES 590104 JUNIORBEES 103.01 UTISUNDERETF 590102 UTISUNDER 172.859. (BSE+NSE) is based on last 1 year data Source: Capitaline.

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