Find out in the video In this video you will learn about ETF investing that how you can invest in exchange traded funds and create a huge wealth and what is the formula of investing in it which I myself follow so you will see that your portfolio will remain in green and even if you are going into negative market you will not suffer that much loss. So let’s understand ETF investing in detail today. So today be with me, as you know he is my younger brother, now this is Vibhu’s account, Vibhu is your account, so what is there in your account here, we will understand it in detail today. So if we see here, we have bought some shares, we will put that aside, let’s start from here, so this is not an ETF, this is a government security, today in this video we are not going to talk about government security, so let’s put this aside as well, let’s start from here, this is Mom30 ETF, so this is a momentum ETF, now what is ETF, let’s understand it first, ETF means exchange traded fund, you go to any screener, you can write ETF here, so as I said, I talked about Mom30, so Mom30 ETF, now what is it telling, it is telling that this is Nifty’s ETF out of 200 companies, out of which 30 will be momentum, now if you see this ETF, see this, how much return has it given in the last one year, 75%, if we talk about Nifty returns, then people invest only in Nifty, so if we talk about Nifty returns, then Nifty has also increased in one year, but how much has Nifty increased is, 25%, what are we talking about, so I will write again, Mom30 ETF, so I am not giving any recommendation here, it is just for education purpose, I want to explain to you, what is ETF, how do we invest in ETF, in which ETF we have invested, why did we invest, I am trying to explain to you, so in some ETFs, you will not get 5 years data, because it may not have started before 5 years, like this data is showing from 2022, so ETF is a new word in India, people have a lot of knowledge about mutual funds, ETF is relatively a new concept, but what is it, you have to understand that it becomes an ETF after getting some companies, it becomes a basket, we have bought the whole basket, we have not bet on one company, why have we not bet on one company, because one company can do 10% in a day, but if it has 30 companies, then all fall Some will not go down, some will go up, so overall in ETFs, there is not so much volatility, as you sell in stocks, and one stock can be 0, the company can be ruined, but if we talk about 20-30 companies, all will be ruined, no, so we have made a diversified portfolio, I tell you how, so I have bought 30 companies out of 200 companies of Nifty, which are in motion, and there is a way to buy it, here it is showing wrong, so as we are seeing, at one time its value was Rs 20, today its value is Rs 35, so it has increased by 75%, this is a simple thing, it is growing, it has good liquidity, now let’s talk about when we buy ETFs, there are some things that are important in ETFs, one is the expense ratio, what is the expense ratio, if you have invested Rs 1 lakh, they have kept their fees at Rs 300, if it is 0.30 exchange, then its expense ratio, expense ratio ETF’s are less than mutual funds, so if I look at momentum mutual funds, let’s see mutual funds, so if you go to mutual funds here, these are mutual funds, let’s talk about momentum, so here I can see Samco Active Momentum Fund, I will click on it, this is also a momentum fund, what is it doing, if we see how much return it has given in one year, it has given 35%, but if I go to expense ratio, its expense ratio is 0.94%, so it has reduced Rs 900, so which one is better, ETF, ETF is cheaper than mutual funds, people think that mutual funds are cheaper, ETF is cheaper, so it is important to understand, but we will make a separate video on mutual funds, if people say that I do not invest in mutual funds, I also invest in mutual funds, but how much I invest in ETF I invest in percentage terms, I will tell you when we make videos on mutual funds, we understand this, the first thing is expense ratio, the second thing is tracking error, tracking error means what is their tracking error, what are they doing, the companies which are gaining momentum, 35 companies, they are investing money, so if momentum comes in a company, what is the percentage chance that they would not have invested money in it, that chance is 0.19%, so this is an error, because fund managers are working behind it, so what is their error percentage, like if we take Nifty ETF, Nifty twenty, its tracking error will be very low, if I take Nifty twenty, I will show you again, its expense ratio will be very low, 0.04%, very low expense ratio, nothing, and its tracking error is 0.04%, because there are 50 companies in Nifty, they We have to invest in 50 companies, so its tracking error is very low, but when we become specific, there are chances of tracking error increasing,
