Why ETFs are not popular in India

ETFs became popular because they combine two things investors like: diversification (a basket of assets) and simplicity (one ticker you can trade like a stock). Many broad index ETFs are also low cost, which matters a lot over long holding periods.

Another driver is transparency. Most ETFs publish holdings and follow clear rules if they track an index, so investors can see what they own. And because ETFs trade on exchanges, they're easy to buy, sell, and move between brokers.

The main caveat is that not all ETFs are "simple index funds." Some are narrow, complex, or expensive. The ETF wrapper is popular, but you still need to evaluate what's inside.