Because it trades like a stock, an ETF does not have its net asset value (NAV) calculated every day like a mutual fund does.
By owning an ETF, you get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share. Another advantage is that the expense ratios for most ETFs are lower than those of the average mutual fund. When buying and selling ETFs, you have to pay the same commission to your broker that you'd pay on any regular order.
Yes, indeed, ETFs are an interesting and often cost effective trading product.
Clients are not making any profits from the funds borrowed from mfis due to high interest rates and alot of hidden charges embedded in the facilities provided by the mfis. If financial deepening is the policy of the govt, then let them use other methods of channelling it.
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