ETF, explained
An ETF (Exchange-Traded Fund) is a basket of securities — often tracking an index like the Nifty 50 — that trades on the exchange like a stock. You buy and sell units through the day at live prices, held in your demat account.
ETF vs mutual fund
Both pool money into a diversified basket, but an ETF trades live on the exchange and needs a demat account, while an index mutual fund is bought at the day’s NAV without a demat account. ETFs usually have very low expense ratios.
Types of ETFs
There’s an ETF for most exposures.
- Index ETFs — track the Nifty 50, Sensex or Bank Nifty.
- Gold & silver ETFs — invest in precious metals without storage.
- Sector & thematic ETFs — IT, bank, consumption and more.
- Debt & liquid ETFs — for parking cash or fixed-income exposure.
How to invest in ETFs
On ROAR you buy ETFs just like shares — search the symbol, place a delivery order at ₹0 brokerage, and the units sit in your demat. Browse all ETF categories to get started.
Frequently asked questions
What is the difference between an ETF and a mutual fund?
An ETF trades on the exchange like a stock at live prices and needs a demat account; a mutual fund is bought and sold at the day’s NAV and does not require a demat account. ETFs usually have lower expense ratios.
Do I need a demat account to buy ETFs?
Yes — ETF units are held in demat and trade on the exchange. ROAR opens a free demat account.
Are ETFs good for beginners?
Index ETFs are a simple, low-cost way to own the whole market. They are a popular starting point, though prices are market-linked and can fall.