Omg thank you for this explanation! The only one that worked for me haha I was scared before to invest in ETFs because I thought it was "illiquid". Many thanks for this very simple explanation on ETF's liquidity!!
Thank you very very very much I was thinking to invest in equity and gold smallcase and I thought when I will sell my all investments after 50yrs then no buyer will be available.
at 6:27 you say authorised participants buy or sell at net asset value .. i want to know from/with whom ? coz it seems that they are doing business at both ends and they are trading at the exchange too..kindly clear this ignorance of mine..
Hey Siddhartha, The APs as well as any person buys/sells from stock exchange. When an individual investor wants to buy a large quantity of ETFs and sellers are not available in the stock market, then the APs buys single stocks which comprise the ETFs from market and package it using AMC's help and sell the ETFs to market and then individual investors gets it. When individual investor wants to sell large quantity of ETFs and buyers are not available in market, then APs buy those large ETFs and then send them to AMC to get single stock and then they sell these individual stocks to market. Hope this clears things for you :)
@@smallcase but ap charging 20 in my 300 rupees etf in this example.... This would be around 7-8 % ,don't u think it's very bad..how can they charge so much from my investment for providing liquidity, why not go with MFS then which hilave high liuidity
etf follows an index this phrase is common and understandable for finance people ...i wish to understand as a lay man with no finance background and keen interst to know how things work...what does this phrase means? how the index works and its price reflected on exchange? and how the etf price is correlated with the index ?
Hey Siddharta, We have cover a lot of basic topics like index, stock exchange etc. Please have a look at our other videos and you will be in better position to understand everything :) Would suggest you to watch the first video of this ETF Series where basics are explained, it will help you learn more about ETFs :)
Large quantity is you can't sell immediately at your urgency at that time no buyers because of low volume, the best ETF is "NIFTYbees" no problem for sellers also because high volume everyday
at 3:50 you said lack of liquidity ... i want to know how there is lack of liquidity ? investor is there with the cash right?the real problem is of supply only..so the price rise !!!! am i missing something ? just an ordinary man asking
Liquidity in simple terms is availability of buyers and sellers for securities. In your question, the investor is there with cash and wants to buy ETFs, but he can only buy ETF when someone is READY TO SELL ETF, Right? and if no one wants to sell ETF, then he will have to wait for a long time, but as ETFs are comprised of stocks, so that's how APs come in picture and help in liquidity and your investor with cash gets the desired ETF. Hope this helps :)
But selling at 280 will cause high loss to us don't u think?? Can somebody clarify me , I guess it's still very illiquid when I have to sell my product at 20 rupee less? Please clarify my 🧐 doubt
Suppose you thought of selling at Rs290, just put gtt order at Rs290, your order will be executed whenever trading price will come at that price. Don't try to sell in market oder, you may face loss
I would like to invest through small case but i am not having demat account with zerodha ... am having acc with upstox only ... plz advise how to invest
You can watch the whole ETF Education Series here: th-cam.com/video/O8Behdio5PI/w-d-xo.html
Also you can use subtitles to view the video in Hindi :)
Omg thank you for this explanation! The only one that worked for me haha I was scared before to invest in ETFs because I thought it was "illiquid". Many thanks for this very simple explanation on ETF's liquidity!!
Great video. Explanation and illustration on point! Thanks for posting.
Got to love chocolates 🙌🙌🙌 thank you for that visual explanation. Really helps a lot 🙏
Thanks. This cleared my biggest doubt (what happens when no one will buy my etf)
Great job 👍 bt abbhi mujhe question hai ki man lijiye mene 3cr ka etf buy kiya or next minute me bech sakte hai??
Thank you very very very much I was thinking to invest in equity and gold smallcase and I thought when I will sell my all investments after 50yrs then no buyer will be available.
But selling at 280 will cause high loss to us don't u think
at 6:27 you say authorised participants buy or sell at net asset value .. i want to know from/with whom ? coz it seems that they are doing business at both ends and they are trading at the exchange too..kindly clear this ignorance of mine..
Hey Siddhartha, The APs as well as any person buys/sells from stock exchange.
When an individual investor wants to buy a large quantity of ETFs and sellers are not available in the stock market, then the APs buys single stocks which comprise the ETFs from market and package it using AMC's help and sell the ETFs to market and then individual investors gets it.
When individual investor wants to sell large quantity of ETFs and buyers are not available in market, then APs buy those large ETFs and then send them to AMC to get single stock and then they sell these individual stocks to market.
Hope this clears things for you :)
@@smallcase but ap charging 20 in my 300 rupees etf in this example.... This would be around 7-8 % ,don't u think it's very bad..how can they charge so much from my investment for providing liquidity, why not go with MFS then which hilave high liuidity
Very helpful. Thanks
Intresting
etf follows an index this phrase is common and understandable for finance people ...i wish to understand as a lay man with no finance background and keen interst to know how things work...what does this phrase means? how the index works and its price reflected on exchange? and how the etf price is correlated with the index ?
Hey Siddharta, We have cover a lot of basic topics like index, stock exchange etc. Please have a look at our other videos and you will be in better position to understand everything :)
Would suggest you to watch the first video of this ETF Series where basics are explained, it will help you learn more about ETFs :)
Thank you sir information 🙏
How fixed return like Bharath bonds works ? How it assures the fixed return
Thanks
Agrechulture stock
Great video
If the APs create new etf units, then won't it dilute the NAV of the ETF? Please explain this doubt.
I want to know what are the benefits of buying ETF via smallcase...
Good
how are dividend income received in ETF are adjusted
Is ETF safe for long tarm investment?
i thing yes
Large quantity is you can't sell immediately at your urgency at that time no buyers because of low volume, the best ETF is "NIFTYbees" no problem for sellers also because high volume everyday
Nice
Glad you liked it Rajat. Watch other videos on our channel to understand stock investments better and stay tuned for more such videos :)
How much do APs make on average as percentage of NAV of a typical fund in a year? It could be over 1%.
okay but how do they just send stocks because I cant send stocks to my friend like they can
at 3:50 you said lack of liquidity ... i want to know how there is lack of liquidity ? investor is there with the cash right?the real problem is of supply only..so the price rise !!!! am i missing something ? just an ordinary man asking
Liquidity in simple terms is availability of buyers and sellers for securities.
In your question, the investor is there with cash and wants to buy ETFs, but he can only buy ETF when someone is READY TO SELL ETF, Right? and if no one wants to sell ETF, then he will have to wait for a long time, but as ETFs are comprised of stocks, so that's how APs come in picture and help in liquidity and your investor with cash gets the desired ETF.
Hope this helps :)
But selling at 280 will cause high loss to us don't u think??
Can somebody clarify me , I guess it's still very illiquid when I have to sell my product at 20 rupee less? Please clarify my 🧐 doubt
Suppose you thought of selling at Rs290, just put gtt order at Rs290, your order will be executed whenever trading price will come at that price. Don't try to sell in market oder, you may face loss
I would like to invest through small case but i am not having demat account with zerodha ... am having acc with upstox only ... plz advise how to invest
Hey Karthik - Upstox is the works, stay tuned!
Hello everyone, Let me know the name of the ETF Software provider/vendors in India.
video Hindi me banao.
Hello Neeraj, We are creating mix content in hindi and english. You can use the subtitles in hindi for this video :)