Skip Navigation LinksHome > Exchange-Traded-Funds
exchange-traded-funds-etf

ETF Investing in India?

Popularly known as ETF, Exchange Traded Funds provide investors with flexibility of a stock market benefits coupled with capital protection. Therefore, ETF funds is fast catching the eye of Indian investors who are constantly on the look-out for lucrative investment options. ETF invests in stocks comprising an index and trade on prominent stock exchanges. Over the past two decades, financial planners have been increasingly recommending their clients to consider Exchange Traded Funds as a good investment option for achieving their long-term goals with minimal risk and goof returns. You can also invest in Gold ETF funds.

Investing in ETF Funds in India

Following are the major benefits of investing in ETF stocks bullet Flexibility to trade:

1. Higher liquidity

You can trade ETFs just like individual stocks on prominent stock exchanges such as BSE and NSE. Thus, ETF provides you with good liquidity.

2. Low cost of investment

ETFs are listed on the stock exchanges and mostly have a lower expense ratio compared with that of other mutual funds. This makes ETFs a relatively cheaper investment option.

3. Easy structure

The structure of ETFs as an investment option is easy to understand.

4. Tax-efficient investment option

Generally, investment in ETFs tend to generate capital gains, which are much lower than other investment options largely because of low turnover of portfolio securities. This makes them a tax-efficient investment option.

5. Portfolio diversification

Exchange Traded Funds ETF Investment helps you diversify your overall investment portfolio. Thus, they help you spread your risks more effectively.

Benefits of investing in ETF funds in India

You can buy or sell ETFs in two ways. That said, even before you commence your ETF investment, you need to consider the following points:

Step 1: You will need to open a trading account with a registered stock broker

Step 2: You will also have to open a Demat account online where you can hold your ETF units.

Please Note:

For completing the above formalities, you will need to be KYC compliant and will require to furnish documents such as:

  • Proof of identity (Passport, Driving License, PAN Card)
  • Proof of address (Passport, Utility Bill, Bank Statement)
  • Bank Account Details (Bank Statement)

Once you successfully complete all the above formalities, you will then be able to buy and/or sell ETFs through your trading account.

Disclaimer : *investment in securities market are subject to market risks, read all the related documents carefully before investing

Get all your queries answered.

phone-call 022 2858 3458

Rate This Page:

Reviews:

★★★
★★★★★

Fees and other Financial Terms and Conditions for Investing in Stock Baskets

  • The Client agrees to pay the fees calculated in the manner and on the rates as provided in the Schedule I.
  • The Basket profits or returns would include any dividends, benefits received out of corporate actions.
  • All the costs, fees, charges as per schedule I and expenses of whatsoever nature incurred by us in connection with the acquisition, holding, sale and transfer, in respect of the dematerialised state charges of the Depository Participant, in respect of Securities shall be paid by the Client.
  • A new separate DP account is required for all investors for the basket investments.
  • For new and existing clients, the Demat account will be used only for equity basket and Investor is free to open separate Demat account for self managed investment.
  • During the course of investment, we will invest as close as possible to the basket amount. Some small surplus to be left due to rounding off that amount will be managed /invest/return to the investor as suitable.
  • The stocks in the basket will be as per the discretion of the ACMIIL. These stocks would be reviewed from time to time and the rebalancing, (if any), of the stocks in the basket would be at the discretion of ACMIIL.
  • You are free to exit basket wise or exit from all basket at any point of time. You are not allowed to selectively exit from any stock or add any stock to the basket.
  • In case of a bank mandate, we will need 20% more mandate of the basket amount as the stock price will fluctuate time to time. The amount taken from bank would be actual value of Basket.
  • The Client agrees that in the event of a dispute, the Claims, if any, by the Client cannot exceed the fees paid by the Client for the year for advisory services in Rupee terms.
  • The client agrees that in case of any dispute, the claim and/or disputes will be referred to arbitration as per the Rules, Bye-laws and Regulations of the Stock Exchange where the trade is executed and the circulars/notices issued there under as may be in force from time to time.
  • As a SEBI registered stock broker, we are permitted to act as an adviser. This product is part of our advisory activity.

Schedule I

Fees Structure
Nature of FeesFees
Basket FeesINR 300 per basket + GST (Charged upfront)
Advisory Fees (Second year onwards)2% p.a+ GST (Charged upfront on Basket Value)
Approx Transaction Charges0.13%
Note: In Basket fees and Management Fees, GST will be recovered at the applicable rate.
Transaction charges includes Brokerage, STT, Stock Exchange charges, Stamp duty, SEBI Charges & GST

Fees Structure Example:

Suppose Client A has bought 1 basket for 36 months so he will pay INR 300 per basket as Basket fees for 36 months and from 13th month onwards he will pay Advisory fees for 1st basket as one year ends for the basket. So, after completion of one year the client A has to pay the Basket fees (13th month fresh basket) as well advisory fees (1st basket upfront Advisory fees for second year).

Transaction Charges Includes
HeadsRate
STT (Central Govt)0.1% on Transaction Value
Transaction Charges (Stock Exchange)0.0034% on Transaction Value
Stamp Duty & SEBI Charges0.011% on Transaction Value
GST18% on Transaction Charges.
  • I have understood that Investment in securities market is subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future performance and future results. The recommendations made by ACMIIL could be those that are based on its own research or on the advice of a SEBI registered Investment Adviser.
  • I have understood the equity basket fees terms and other financial conditions and the clarifications required by me. I understand that the investment in Equity basket is subject to risk associated with equity investments. I have understood the investment process and other aspects of the product.
  • I hereby agree to participate.

Copyrights @ 2013 © Asit C Mehta Investment Interrmediates Ltd.(ISO 9001:2015 certified company)