EXCHANGE TRADED FUNDS (ETF)

These are basically the passive mutual funds that are traded on exchange like stocks.
You can buy & sell ETFs like stocks. It requires a Demat & Trading account to hold buy or sell the ETFs
Generally open-ended funds the price of which determined by the market
Generally, there are no recurring expenses in the ETFs unlike MFs
It combines the range of a diversify portfolio with the simplicity of trading a Single stock.
Even you can invest in commodities like gold with ETFs
ETFs can be sector specific, theme specific etc.
It can be sold or bought during market hours only.
Less risky than other modes of investment.
Liquidity is little bit concern in some ETFs

BENEFITS OF ETFS

Can be bought and sold easily.
Low expense ratio in comparison to Mutual Funds.
Offer investment in the Index funds like Nifty, commodities like gold etc.
No. of outstanding ETF units are not limited, as with traditional mutual funds.
ETF units can be created or redeemed based on the investor demand.
Investors can trade in ETFs during market hours as in stocks and may take benefit from the fluctuating price. Therefore, the NAV are based on real time.
Helps long term investors to diversify their portfolio.
ETFs tracking certain sector or industry may be used to gain exposure to new & underweight sector.

To learn more about Mutual Funds and to lean about investment in Mutual funds based on your end objectives….