Srinagar, April 21 -- An ETF is like a basket of investments-stocks, bonds, gold, or other assets-bundled together and traded on stock exchanges. Instead of buying one company's stock, you buy into a group. For example, a Nifty ETF includes shares from India's top 50 companies. This spreads out your risk: if one stock dips, others may balance it out.

That's called diversification, and it's a big reason ETFs are smart for beginners. You don't need to spend hours researching which stock to pick. You don't need to follow company news daily. An ETF gives you broad exposure with just one purchase.

ETFs are also cost-effective. They usually come with lower fees than mutual funds and can be traded during the day like regular stocks, offering f...