It is often daunting and tedious for an average investor who wants to invest in stocks and build their own investment portfolio. This is because there is a lot of research to be done on individual companies and sectors. You also have to align it with your risk appetite and monitor the ongoing developments as well. Hence, one easier method to construct a portfolio would be through using exchange-traded funds (ETFs) or a combination of it. But first, lets understand what exactly ETFs are.

What are ETFs?

An exchange traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other asset, which is then listed and traded on a stock exchange. Your money is pooled with money from other investors and invested according to the ETF’s stated investment objective. The assets under exchange traded funds (ETFs) continue to grow in number and popularity since their introduction in the early 2000s....