(From The Economic Times)
In India the mutual funds are no longer investing in equities only. In Budget 2005 the finance minister has proposed to introduce gold exchange traded funds. A gold exchange traded fund will represent gold as the underlying security. Exchange traded fund (ETF) has emerged globally as a new class of 'mutual fund' instruments.
What is an exchange traded fund?
An exchange-traded fund (ETF) is an investment fund that tracks an index and represents a basket of stocks like an index fund, but trades like a stock on an exchange. Investors may buy or sell ETF shares through a broker just as the shares of any publicly traded company. …