Basically, Exchange traded funds are part of the mutual fund instruments, but these instrument products focus more on stocks that are traded on the stock exchange. So in essence, an Exchange traded fund is a combination of mutual fund instruments in fund management with a stock buying and selling transaction mechanism. As for Exchange traded fund transactions, it can be done in the primary market or the secondary market.
What are Exchange Traded Funds?
Exchange Traded Fund (ETF) is part of the Mutual Fund investment instrument contract that is collected (collectively) whose participation is traded on the stock exchange through intermediaries of trading members on the exchange.
How to Invest in Exchange Traded Funds
To be able to invest in Exchange traded funds (ETF) you can directly meet investors who have ETFs. If you are going to invest through the primary market, you can contact participant dealers (exchange members who partner with Investment Managers who manage ETFs). But if you are going to invest in ETFs through the secondary market you can contact a broker.
Minimum investment/purchase will depend on the type of market you use to make transactions. If you invest through the primary market, the minimum purchase is 1000 lots or 100,000 units. Meanwhile, if you transact through the secondary market, the minimum purchase is 1 lot or 100 units.
There are no transaction fees like investing in Mutual funds but investors will be charged a commission fee.
Conclusion:
People say that investing in Exchange traded funds is a higher level than Mutual fund investing, even though they are similar, the way they work, the risks, and their price fluctuations are also different.
What are Exchange Traded Funds?
Exchange Traded Fund (ETF) is part of the Mutual Fund investment instrument contract that is collected (collectively) whose participation is traded on the stock exchange through intermediaries of trading members on the exchange.
How to Invest in Exchange Traded Funds
To be able to invest in Exchange traded funds (ETF) you can directly meet investors who have ETFs. If you are going to invest through the primary market, you can contact participant dealers (exchange members who partner with Investment Managers who manage ETFs). But if you are going to invest in ETFs through the secondary market you can contact a broker.
Minimum investment/purchase will depend on the type of market you use to make transactions. If you invest through the primary market, the minimum purchase is 1000 lots or 100,000 units. Meanwhile, if you transact through the secondary market, the minimum purchase is 1 lot or 100 units.
There are no transaction fees like investing in Mutual funds but investors will be charged a commission fee.
Conclusion:
People say that investing in Exchange traded funds is a higher level than Mutual fund investing, even though they are similar, the way they work, the risks, and their price fluctuations are also different.
