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Exchange-Traded Funds: A Quick Overview

Initially, you had limited investment options. You could either park your money in a Savings Account or Fixed Deposits and earn reasonable returns. Today, you have access to innumerable investment options. Be it a bank or market-linked instruments, there are so many ways to keep your money working and potentially build wealth. If you want to earn beyond the traditional fixed returns, you should invest in market-linked instruments. Now, market-linked instruments is a term used in a broad sense. There are several instruments under this category. Exchange-Traded Funds or an ETF work for new investors. It is a combination of both Mutual Funds and Equities. You can create a diverse portfolio of a Mutual Fund, and enjoy high investment flexibility and liquidity like Equities. Let us understand ETFs better. How do ETFs work? ETF is a collection of assets like Equities and Debt instruments. However, you do not directly hold ownership of these assets. Equities or Debts are typically the underlying asset. Your investment returns and associated risk depends on the performance of these underlying assets. If the underlying assets perform well, so does your investment and vice-versa. What are the different ETFs? Based on the underlying assets you opt for, ETFs are classified into various types:
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What Are the Uses of a Mutual Fund Lumpsum Calculator?

Mutual Fund Investments are of two types: Systematic Investment Plans and Lumpsum Investments. While SIPs gained popularity over the years, amateur investors may not have a firm grasp on the lumpsum investment concepts. Unlike SIP, an investor makes an independent investment in a particular scheme in a single transaction when using the Lumpsum Investment method. A lumpsum calculator helps estimate the potential returns made by you in a lump sum. You need to fill in the details, like the quantum of investment, the period for which you wish to stay invested, and the expected return rate predicted on the scheme. The tool computes the maturity value based on the variables entered. Uses of the calculator Investors can use this calculator to gauge the estimated returns on their Lumpsum Investments and evaluate whether it meets their financial objectives at the end of the term. Here are other uses: Estimated return The tool offers an estimated return for the entire investment period. You must mention the investment amount, expected return rate, and investment tenure to reach an approximate value. You can adjust the variables endlessly and flexibly while arriving at suitable combinations.
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