{"id":6367,"date":"2026-02-19T08:49:35","date_gmt":"2026-02-19T08:49:35","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=6367"},"modified":"2026-02-19T09:01:49","modified_gmt":"2026-02-19T09:01:49","slug":"exchange-traded-funds-etf-investing","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/exchange-traded-funds-etf-investing\/","title":{"rendered":"Exchange Traded Funds (ETFs): Meaning, Types, Benefits & How to Start Investing"},"content":{"rendered":"

In 2026, the landscape of Indian wealth management is shifting. While traditional mutual funds have long been a household name, a cost-efficient alternative is gaining popularity among investors. Whether you are scrolling through your trading app or chatting with your wealth manager, you have likely heard of Exchange Traded Funds (ETFs).<\/span><\/p>\n

Indian investors are increasingly turning to Exchange Traded Funds (ETFs)<\/span><\/a> for their affordability and diversification. Unlike traditional actively managed mutual funds or stocks, exchange traded funds are passively managed, highly liquid, and come with minimal fees.\u00a0<\/span><\/p>\n

If you have ever wondered how to gain exposure to the top 50 companies in India or the global tech giants of the Nasdaq with just a few clicks, this guide is for you.<\/span><\/p>\n

What Are Exchange Traded Funds?<\/b><\/h2>\n

An exchange traded fund or ETF<\/span><\/a> is a market linked investment that tracks a specific index, sector, commodity, or asset class. <\/span>For example, an ETF tracking the Nifty 50 will invest in the same 50 companies in the same proportion as the index. The goal is not to outperform the market but to replicate its performance.<\/span><\/p>\n

Unlike traditional mutual funds, exchange traded funds:<\/span><\/p>\n