• Download APP
  • NAVs {{ NAVs[0].NAVDate.toString().replace(')/','').replace('/Date(','') | date:'d MMM yyyy' }} :
    • {{nav.FundName}}
      {{nav.NAV}}

  • New investment support : Missed call 8980017232

MK
Dashboard Settings Logout
New to ICICIPRUMF?
Start your first investment
Quick Invest
Invest with Folio No.
Back
Back

Posted on 10/15/2020 9:30:00 AM

Step 1

Pick a benchmark index

If you have a preference for any asset class – equity, debt, gold etc., you can pick an index that tracks them. There are even indices based on specific market segments such as market caps (large, mid and small caps) or sector (IT, pharma, FMCG etc). Once you’ve zeroed in on an ETF that tracks your preferred benchmark it’s time to check its trading volume.

Step 2

Check the trading volume

The trading volume of an ETF holds vital information. The higher the trading volume, the lower the bid-ask spread and hence lower cost of investment. An ETF with a high trading volume is definitely preferable.

Step 3

Size up Tracking Errors

ETFs aim to track market indices as closely as possible. Sometimes an ETF may not show the same growth appreciation as the index it follows. This is called a tracking error. While you should look for an ETF with minimum tracking error, remember that SEBI has allowed ETFs to have a tracking error of only 2%.


An Investor Education Initiative
Click here to learn more about KYC Requirements, SEBI Registered Mutual Funds and grievance redressal.

Tags: 2020 Exchange Traded Funds ETFs

Previous Article

I am Ready To Invest In ETFs. What Are The Different Types?

Next Article

Are ETFs The Right Fit for Me?

  • Did You Know?

    You can transact faster and enjoy more features on ICICI Pru AMC once you log in!

    Login Now

  • Need to talk?

    Call on our Toll free number 1800 222 999(BSNL/MTNL)

    or Get a call back

  • Follow Us

    The latest from ICICI Pru AMC, including our unique, industry-leading programs, conferences, reports, and special events.

Recommended fund