New Delhi, April 11 -- An exchange-traded fund (ETF) is a combination of securities that provides diversification benefits of mutual funds with the ease of trading equities. It works similarly to an index mutual fund; the only key difference is it can be bought and sold on a stock exchange just like individual stocks.

Unlike mutual funds, which have a single closing price at the end of the trading day, the price of an ETF fluctuates throughout the day as it is actively traded on the market.

An exchange-traded fund (ETF) is a collection of different assets, such as equities, bonds, or other securities traded on stock exchanges. It enables investors to invest in many securities at once. When you buy an ETF, you're investing in all the ass...