WHY INVESTING IN ETF’S CAN BE CONSIDERED AS THE BEST INVESTMENT
Exchange traded funds or ETF’s can be considered as best investment opportunity than investing directly in a stock especially when the markets are underperforming or in a bearish trend. Exchange-traded funds (ETFs) have emerged as a popular investment option for investors seeking diversification, flexibility, and cost-effectiveness in their portfolios. ETF investment opportunity have gained widespread popularity due to their sectoral investment benefits and potential for long-term returns. Accessibility is also a notable advantage of ETF investments. ETFs provide investors accessibility to wide range of investment opportunities. For example, investors can invest in international markets, specific industry sectors, or alternative asset classes such as commodities or real estate through ETFs. Different ETF’s and their performance will be discussed later in this article. Exchange traded funds (ETF) allows investors to diversify their portfolios beyond traditional investments and potentially enhance their investment returns in every market conditions.
Benefits of ETF Investment
ETFs offer several benefits for investors, making them an attractive investment option:
- Diversification within investment – Exchange traded funds (ETFs) provide investors with instant diversification as they hold a basket of underlying assets. Diversification is the key of every successful. ETF’s provides investors diversification benefits as they hold a basket of stocks or tracks an index. This diversification helps to spread risk, reducing the impact of any one investment on the overall portfolio. By investing in sectors investors can achieve a balanced portfolio that can weather market fluctuations.
- Liquidity – Exchange Traded funds have high liquidity which allows the investors to sell and buy the asset class at any time. ETF provides easily accessibility and convenience to investors as compared to other funds.
- Low volatility – Investing in ETF’s are safe and has very low volatility when compared to stocks. Investors can easily manage their investments and can take intelligent decisions accordingly as the probability of manipulation or news specified moves will got generally affect ETF’s as they track a sector or an index.
- Sectoral Investment Benefits – The best advantage of Exchange traded funds investment is to make sectoral investments. Investing in a sector is far better than investing in a particular stock. Having your own proper research and investing when the sectors are undervalued are the best investment we can make in the current market scenario.
- Cost-effective – Exchange traded funds (ETFs) are known for their low costs compared to traditional mutual funds. ETFs typically have lower expense ratios as they are passively managed, meaning they track an index rather than relying on active fund managers. This can result in higher returns for investors over the long term. ETF’s have only very low expense ratio and provides various investment benefits being the best available investment opportunity.
BEST AVAILABE ETF’S TO INVEST ALONG WITH HISTORICAL PERFORMANCE
| ETF NAME | TRACKING | LTP | LAST YEAR PERFORMANCE |
| PSUBNK BEES | PSU BANK | 42.92 | (+73.16%) |
| BANK BEES | BANK NIFTY | 425.64 | (+21.81%) |
| NIFTY BEES | NIFTY 50 | 192.85 | (+5.46%) |
| IT BEES | NIFTY IT | 27.97 | NEW ETF |
| INFRA BEES | NIFTY INFRA | 536.59 | (+5.89%) |
| AUTO BEES | NIFTY AUTO | 130.41 | NEW ETF |
| GOLD BEES | GOLD | 51.31 | (+12.80%) |
| HNGSNG BEES | HANGSENG INDEX | 285 | (-4.69%) |
| JUNIOR BEES | NIFTY NEXT 50 INDEX | 406.55 | (+0.77%) |
| MID150 BEES | NIFTY MIDCAP 150 | 119.55 | NEW ETF |
| MON100 | NASDAQ-100 | 103.55 | (-26.22%) |
| PHARMA BEES | NIFTY PHARMA | 12.69 | NEW ETF |
| MOM100 | NIFTY MIDCAP 100 INDEX | 32.9 | (+4.93%) |
HOW TO MAKE AN ETF INVESTMENT ?
Investing in ETFs is relatively straightforward and can be done through a brokerage account or an online trading platform. Here are the basic steps to get started:
- Set your investment goals
- Do your own ETF research
- Select a brokerage account
- Buy the ETF’s you have researched
- Monitor your investments
