Exchange-traded funds (ETFs) made their debut in India in 2002, offering investors a diversified and cost-effective investment option. Unlike investing in individual stocks, where the risk is concentrated in a single company, ETFs allow investors to spread their risk across multiple companies within a specific sector or index.

Investing in unlisted shares means buying ownership stakes in companies that haven’t gone through the process of making their shares available for public trading through an Initial Public Offering (IPO).

Exempt income pertains to specific types of earnings that are not taxable under the Income Tax Act’s provisions. This differs from deductions under income tax, where deductions are claimed against taxable income.