Exchange-Traded Fund investments help in long-term wealth creation.

ETFs can yield higher returns compared to fixed deposit schemes provided by the governments and banks in the long term.

ETFs can yield higher returns compared to fixed deposit schemes provided by the governments and banks in the long term.Exchange-Traded Funds are a type of pooled investment funds that invest in various securities like bonds, equities, and commodities. ETFs track the various indices where investments are made. Thus, the investor's chances of losing money are highly unlikely as it does not depend on fund managers' expertise and, in turn, generates steady returns. The expense incurred in managing an ETF investment is lower compared to some of the actively managed equities. This lower maintenance cost also helps generate better returns in the long term.

Fixed deposit schemes and Public Provident funds generate a steady return in the long run at fixed rates. However, in the case of ETFs, securities are purchased by constantly tracking the respective indices and are invested in the best-performing platforms. Thus, it is safe to say that ETFs are comparatively risk-free and generate higher returns than other schemes with fixed return rates.