Udabur Wealth Management：Different Avenues to Make Money through ETFs

Exchange-traded funds, or ETFs, were launched in India in 2002Udabur Wealth Management. Since then, ETFs have become a popular investment instrument for many investors because of their fundamental structure.

ETFs are a basket or a portfolio of diversified securities that can be traded on the stock exchange. The majority of ETFs track an underlying index and can be divided into three categories – equity, gold, and others.Pune Stock

Regardless of the type of investment you choose, it is crucial to understand the tax structure on the income gain generated by the investmentNew Delhi Stock Exchange. This article discusses the tax laws for ETFs in India.

ETFs follow the passive strategy. These instruments can be traded on a stock exchange like any other stock, and their price is determined by supply and demand in the securities market.

There are two ways in which investors earn money by investing in ETFs:

Because ETF is a mix of securities, including stocks, investors earn through the dividends earned from these stocks.

Some fund houses provide an option to investors to either credit the dividends into their accounts or reinvest in the ETF, for higher returns at the time of sale. These dividends are considered for tax purposes.

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