ETF

Exchange Traded Funds (ETFs) are essentially mutual fund schemes or index funds that are listed and traded on an exchange just like stocks. ETFs can be bought and sold throughout the trading day. Buying/Selling of ETFs is as simple as buying/selling of any other stock on the exchange allowing investors to take advantage of intra-day price movements. Other advantage of ETFs is that you can buy even one unit and hence take exposure of the entire index at very low amounts. ETFs can be bought and sold just by a call to the broker or through your internet trading account. This provides an opportunity to investors to respond to changes in the market and even place limit orders while trading. Thus with ETFs, one can benefit both from the flexibility of a stock as well as diversification of an open ended mutual fund scheme.

ETFs offer several advantages to investors : - Can easily be bought / sold like any other stock on the exchange through terminals across the country. Buy / Sell at real-time prices Ability to put limit orders. No separate form filling, delivery in your demat account. Minimum investment is one unit. Lower Expense ratio in comparison to index funds? No STT on purchase of units, STT on sale of ETFs is 0.001%, which is lower than stocks

While the expense ratio of ETFs is generally low, there are certain costs that are unique to ETFs. Since ETFs, like stocks, are bought as shares through a broker, every time an investor makes a purchase, he/she pays a brokerage commission. In addition, an investor can suffer the usual costs of trading stocks, including differences in the ask-bid spread etc. Of course, traditional mutual fund investors are also subjected to the same trading costs indirectly, as the fund in turn pays for these costs.

The real-time NAV of Nippon India ETFs is available on the website of Nippon India ETF i.e. etf.nipponindiaim.com. Units can be bought or sold at prices close to this NAV.

As Nippon India ETFs trade just like any other normal listed security on the NSE / BSE, settlement is just like any other stock. In case an investor has purchased Nippon India ETFs from the market, he has to pay the broker before the pay-in on T+2 and in the case of sale, an investor has to transfer Nippon India ETFs from his demat account to his brokers account before the settlement on T+2.

As clearing and settlement is done through the exchanges, the exchange's clearing houseguarantees all trades. Any shortfall in unitswill be auctioned by the exchange and theinvestor is protected by the exchangemechanism.

There is no entry or exit load on direct subscription and redemption of Nippon India ETFs increation unit size with the Fund. Also there is no entry or exit load on Nippon India ETFs purchased and sold on NSE / BSE. However, an investor would be paying cost in the form of abid and ask spread and brokerage and other charges as may be levied by his broker.

Yes, Nippon India ETFs can be directly purchased and redeemed from Nippon India Mutual Fund but only in certain lot sizes called "Creation unit".

The basic requirements are: A Share Trading Account A Demat Account

Same rules apply as in the case of buying or selling stocks or mutual fund units. Kindly refer the respective Scheme Information Document / Key Information Memorandum.

Same rules apply as in the case of buying / selling stocks / mutual fund units.