A STUDY ON THE ANALYSIS OF EXCHANGE-TRADED FUNDS (ETF) INVESTMENTS IN INDIA

Exchange-Traded Funds have emerged as one of the most significant investment instruments in the Indian financial market because of their diversification, liquidity, transparency, cost-effectiveness, and operational flexibility. The study indicates that investor awareness regarding ETFs has improved considerably, supported by increasing financial literacy, digital investment platforms, and the growing acceptance of passive investment strategies. Most respondents recognize diversification as the primary advantage of ETF investments and express satisfaction with their performance, liquidity, and long-term investment potential. Financial literacy and technological accessibility have played an important role in influencing investor preferences and encouraging greater participation in ETF markets. Although awareness among retail investors continues to improve, further educational initiatives and simplified investment information are necessary to enhance ETF adoption. Overall, Exchange-Traded Funds are expected to play an increasingly important role in portfolio diversification, passive investing, and long-term wealth creation within the Indian financial system.

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