Inverse ETF:
Sebi’s new asset class proposal for high-risk investors is expected to provide access to advanced strategies like long-short equity funds and inverse ETFs
- An Exchange-Traded Fund (ETF) is a type of investment fund that holds a collection of assets like stocks, bonds, or commodities and is traded on stock exchanges, much like individual stocks.
- ETFs offer investors a way to diversify their portfolios with a single investment and are known for their lower fees and ease of trading.
- An Inverse ETF is designed to provide returns that move in the opposite direction of a specific index or benchmark.
- If the underlying index declines in value, the Inverse ETF aims to increase in value by the same percentage, effectively allowing investors to profit from a market downturn.
