For investing exposure to Indian markets, explore these top 5 India exchange-traded funds (ETFs).
India exchange-traded funds (ETFs) are comprised of securities traded in India. This is an emerging market play, meaning it carries higher risk than more mature markets carry. (See also: The Risks Of Investing In Emerging Markets.)
India’s economy is growing, but is not entirely stable and could be subject to volatility. The higher risk can mean higher returns, as each of the ETFs on our list shows. We have selected India ETFs that have the highest year-to-date returns of all India ETFs.
An India ETF is not a buy-and-hold investment. You must consistently monitor not only each ETF’s performance, but also the condition of the economy in India. (See also: Citizens Scramble for Cash After India’s Currency Ban.)
What is an ETF?
An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur. Most ETFs track an index, such as a stock index or bond index.
Here are the top five India ETFs by year-to-date returns as of July 10, 2017. Read more...Source: Investopedia