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Here’s how you can build your portfolio with ETFs

April 06, 2021 / 11:46 AM IST

ETFs will continue to rise as the economies develop, and more theme and sector-specific ETFs will get launched in the coming years.

Passive investments have sparked a lot of interest among investors. In the last two years, Indian investors have diversified their portfolios by adding passive funds such as Exchange Traded Funds (ETFs).

ETFs, which track market index, are gaining popularity in India. Although the first ETF was launched in 2001, the asset class is still at a nascent stage as compared to developed markets. As of September 2020, the total AUM of the ETF (Equity & Debt) Industry in India had crossed Rs 2 Lakh crores (Rs 2 Trillion).

That said, it is expected the ETFs will become one of the preferred investment tools in India. Thus, to inform and educate investors about benefits of ETFs and how it can diversify your portfolio, Mirae Asset Mutual Fund and Moneycontrol held a special webinar on ‘Why ETFs in your asset allocation’ under its second season of ‘Decoding the world of ETF’.

The exclusive webinar saw an engaging discussion where Siddhartha Srivastava, Head- ETF Product, Mirae Asset Investment Mangers (India) Pvt. Ltd. spoke to Sumaira Abidi, CNBC-TV18 about ETF trends and landscape in India.

During the chat, Srivastava gave insights into how ETFs will come in the forefront, and expected more products to be launched in the space. He also spoke about best practices to choose ETFs and its benefits.

“ETFs are transparent in nature. It has an investment objective, known method and basically tries to stick to that. If a person wants to take a long-term exposure in a very broad-based index, he can very well go for NIFTY50, CNX NIFTY or a SENSEX ETF and get that large cap exposure. If an investor wants to get more tactical and invest in Central Public Sector Enterprises (CPSEs) or Public Sector Undertakings (PSUs), he can invest in those ETFs. Globally, a lot of people are investing in Artificial Intelligence (AI) sector based ETF or a Cloud computing sector based ETF,” said Srivastava.

He added ETFs will continue to rise as the economies develop and more theme and sector-specific ETFs will get launched, like how the Electric Vehicles-based ETFs are gaining traction.

Watch the webinar here

 

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Disclaimer: An Investor Education Initiative by Mirae Asset Mutual Fund For information on the KYC process, Registered Mutual Funds and the procedure to lodge a complaint, refer the knowledge center section available on the website of Mirae Asset Mutual Fund

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

 

 
first published: Apr 6, 2021 11:46 am
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