What are the benefits of investing in ETFs?

  • Simple to trade anytime during market hours
  • Diversification with a single trade
  • Liquidity and transparency
  • Lower cost/expense ratio than mutual funds
  • Flexibility: can be pledged for margin
  • Tax-efficient (Equity ETFs: STCG 15%, LTCG 10% above ₹1 lakh; Debt/Commodity ETFs taxed as per rules)
  • Trading options: limit orders, stop-loss orders