Exchange Traded Funds (ETFs): An Effective Alternative to Traditional Mutual Funds

Abstract

In the dynamic financial world where investors are often rethinking asset allocation and reevaluating the merits of various investment products, Exchange Traded Funds (ETFs) have opened up a whole new range of investment opportunities and appear to be a creative solution to many investing queries. An alternative to index mutual funds, ETFs offer investors a low cost, tax efficient way to track their favorite market segments. This paper attempts to provide a conceptual framework of ETFs, so as to build awareness among investors about this relatively new financial product available to them.