ETFs Live On Paytm Money3 min readReading Time: 3 minutes
Are you exploring cheaper ways to diversify your portfolio? Your search ends right here at Paytm Money!
We have just got Exchange-Traded Funds or popularly known as ETFs onboard to suit your requirement. These are a basket of securities like stocks that track certain indices like Nifty, Sensex, and can be traded on NSE/BSE like your regular stocks.
At Paytm Money, investing in ETFs is way more simpler and convenient, just the way you do it for your mutual funds. Now you may wonder why to go for it in the first place?
Your concerns are absolutely justified. Don’t worry we will break it down for you.
If you are someone who wants to invest in stocks, then putting all your money in a single stock would be very risky. Then what’s the way out; buy more stocks, and spread out your investments. But imagine if you have to gain exposure to the whole stock market, how much money would you have to invest? Already perspiring…huh!
In such situations, ETFs can be your go-to friend. At Paytm Money, you can access different kinds of ETFs across equity, gold, and debt categories to gain exposure to all the market leaders, and prominent sectors in one go at a nominal amount. Also, whenever the stock market rallies, as an ETF investor, you would get a first-mover advantage of the equity growth story.
In addition to this, the app provides you live market prices of ETF and gives you the flexibility to buy and sell ETFs in real-time. Moreover, you can easily track the price changes in the preferred ETFs by setting price alerts on the app and get notified when the target price is reached.
Besides, there are no complex procedures if you want to redeem your investments. ETFs are liquid investments. Based on the real-time prices of ETF on the app, you can place a sell order during the open market hours and get the money credited to your bank account within 2 days. Also, you have the option to invest via both the Paytm Money app and the Paytm Money website.
It doesn’t stop here. We’ve got more intriguing reasons.
ETFs are the low-cost options that are high on value. But how?
As ETFs are simply tracking a given index out there and holding the same kind of stocks, the fund manager won’t need that extra team of analysts. He/she would also make changes to the existing holding only when the index changes its own. That cuts down the overall cost to manage an ETF.
You might wonder so what?
These savings translate into a significantly lower expense ratio of around 0.02-0.97% as opposed to 1-2% of expense ratio that might be charged from you had you been investing in an expensive actively-managed fund.
Besides, if you dig deeper into the ETF growth story, you would find that over the last three years, some of the top-performing ETFs like Aditya Birla Sun Life Gold ETF, Nippon India Nv20 ETF, LIC G-Sec Long Term ETF have delivered returns to the tune of 18.67%, 10.29%, and 8.43%. Thus, with ETFs, you can beat inflation and pocket-in some decent returns.
Globally, ETFs have been the most sought-after products owing to their efficiency and diversified structure. Also, unbelievably, similar traction has been witnessed in India as well. Over the past decade, the Asset Under Management of ETF has grown by over 266x from a mere Rs 659 cr in 2009 to Rs 175,340 cr in 2020. Now, you can imagine the kind of potential that these funds have which is inspiring so many individuals to get their money into that.
Investing in ETFs is a cost-effective way to diversify your portfolio and get stable returns at the same time. In fact, you can as well conveniently allocate around 5-10% of your invested capital towards ETFs to accumulate wealth for the long term. So don’t wait any further. Download the Paytm Money app today, get your KYC done instantly and start investing in ETFs in a simple and convenient way.