ETF
Exchange-traded fund
A fund that tracks an index or gold and is bought and sold on the stock exchange like a share.
ETFs usually have very low expense ratios. You need a demat account, and the price you get depends on trading during the day, so check how much is traded before buying.
Index funds hold the same kind of portfolio and can be bought directly from the fund house at the day's NAV, without a demat account.
Related terms
Rules as of tax year 2026-27. Written by the Welthr team; last reviewed on . Not financial advice.