Investing in ETF

Hello Guys,

I am trying to understand more about unvesting in ETF’s as opposed to index fund. When I checked ETF are generally trading with very low volume. This makes me little worried that if I start accumulating and have considerable quantity in my account… At the time of redimption I may be stuck s there are no sufficient buyer to match my quantity… what happes in this case?

Please help me understand more on ETF’s please.


why ETFs when you can invest easily in index funds?
reg your query, there is no redemption in etfs. you have to sell them in nse. incase there is no buyer, you can sell it back to the AMC

Thank you for response. I was infact trying to cut down the expense ratio of mutual fund… however it looks like in ETF I will be paying brockarage so index MF is good option for me now…

Will popularity of ETF or index fund effects stock price?!
At present most index and eft focused on sensex or nifty. How much impact it may have on those stocks?

I come across screener of HDFC bank.

Holding of SBI EFT of Nifty 50 is 3.28%.
Looking to discuss more accordingly…

There are more variety of ETF which tracks variety of index than index funds. And you can buy or sell directly to the fund house of ETF if the quantity is large enough (usually more than 10 lakhs).

ETF won’t affect any stocks if they are traded only in secondary market. It will only start affecting if someone invests or redeems directly from the fund house. And in this sense it’s effect is pretty much like any other mutual fund.

There is existing a thread on ETF. Please move content there as a seperate thread is not needed.