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Passive Exchange-Traded Fund (ETF)

Published: 11th May, 2024

Context

The investment cap for passive funds in sponsor group companies has been raised by SEBI in an effort to boost the effectiveness and competitiveness of these funds in India.

About passive exchange-traded fund (ETF)

  • An investment tool called a passive exchange-traded fund (ETF) aims to mimic the performance of either a particular industry or trend or the larger equity market.
  • ETFs replicate the holdings of an index, which is a group of tradable securities that are thought to be typical of a specific market or industry.
  • They are available for purchase and sale at any time during the trading day, just like stocks on a major exchange.
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