New Delhi, July 23 -- Exchange-traded funds (ETFs) offer investors a way to build diversified portfolios with the flexibility of buying and selling them like shares. However, as ETF unit prices rise, it becomes harder for people with limited budgets to invest because they must buy at least one unit.

To address this, some mutual fund houses have conducted ETF splits to reduce the price per unit.

A split reduces the per-unit price of an ETF and increases the number of units an investor owns, while the total value of the investment remains the same.

Think of an ETF split like exchanging one Rs.500 note for five Rs.100 notes. The number of notes increases, but the total value remains Rs.500. The same principle applies to ETFs.

Suppose you...