The market regulator recently issued a circular on passive funds covering matters related to transparency, liquidity and operational aspects of exchange-traded funds (ETFs) and index funds. These provisions will come into effect from 1 July. Mint decodes:
Want to capture themes like ESG, robotics, AI? Try ETFs
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Last Updated: Apr 16, 2021, 09:19 AM IST
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Synopsis
2020 saw the rise of innovation in the form of thematic products such as ESG, Target Maturity Debt ETF, Smart-Beta ETFs etc coming to the market. What is more important is that the ETFs started gaining acceptance from retail investors also.
Agencies
The year 2020 witnessed a surge in the number of Exchange Traded Funds (ETFs) launched along with substantial inflows into these products. The year also saw the rise of innovation in the form of thematic products such as ESG, Target Maturity Debt ETF, Smart-Beta ETFs etc coming to the market. What is more important is that the ETFs started gaining acceptance from retail investors also, apart from institutional investors who are significant investors in ETF already. ETFs have potential to provide different solutions that can cater to demands of various investors. Desired market exposure at low-cost through plain