Top 5 ETFs for Long Term Investment in Stock Market

Summary

The video discusses five personal favorite ETFs for long-term investment, aiming to build wealth. The speaker highlights the difficulty of selecting just five ETFs and emphasizes the importance of having an investment horizon of at least five years. They explore small-cap and mid-cap ETFs in India, as well as the FANG ETF from the US, showing how these ETFs have historically performed well. Sector-based ETFs, such as those focused on electric vehicles (EVs), are also mentioned as potential options. The video encourages careful, well-researched investment decisions due to the high-risk nature of these ETFs.

Takeaways

• 📊 There are many ETFs available, but the speaker discusses their personal five favorite ETFs for long-term wealth building.
• 📈 The speaker emphasizes that these ETFs are not traditional ones like Nifty Bees or Bank Bees and are selected for long-term growth, meaning more than 5 years.
• 🧠 It’s important to think carefully and consider personal financial horizons, as these ETFs perform best over a longer period, and short-term results may not reflect long-term potential.
• 🏦 The first ETF discussed is Nifty Bees from Nippon India, but the speaker aims to outperform Nifty returns by selecting other ETFs.
• 🚀 HDFC Small Cap 250 ETF is highlighted for its impressive returns (112%) since April 2023, showcasing strong growth in small-cap companies.
• 📉 Mid-cap and small-cap ETFs have shown nearly 100% returns in the last year, making them highly attractive for investors seeking growth beyond large-cap stocks.
• 🌍 The FANG ETF, consisting of global tech giants like Facebook, Apple, Netflix, Google, and Amazon, has delivered a return of 135% since April 2023.
• 🌱 The speaker highlights sector-specific ETFs, such as those focused on small-cap, mid-cap, and emerging sectors like electric vehicles (EV).
• 🔍 The speaker stresses the importance of researching and selecting ETFs that align with future growth sectors, like IT, FMCG, and EV industries.
• ⚠️ All these ETFs are high-risk and subject to market volatility, so it’s important to invest cautiously and diversify for long-term success.

Q & A

What is the main focus of the video?

The video discusses the creator's top 5 favorite ETFs for long-term investment, emphasizing the potential for wealth creation over time.

What is the suggested minimum investment horizon for these ETFs?

The creator suggests a minimum investment horizon of 5 years for these ETFs to benefit from long-term market trends and compounding.

Why does the creator prefer ETFs over individual stocks?

The creator believes ETFs contain the best-performing stocks, providing diversification and reducing individual stock risk. ETFs have also delivered strong returns historically.

What is the creator's opinion on Nifty Bees and similar ETFs?

The creator acknowledges Nifty Bees as a popular ETF but emphasizes that the focus of the video is on other, more specialized ETFs that have potential to outperform Nifty in the long term.

Why does the creator recommend the HDFC SML250 ETF?

The HDFC SML250 ETF invests in 250 small-cap companies, which historically have shown significant growth potential, with the ETF delivering over 100% returns in a relatively short period.

What is the rationale for including a mid-cap ETF in the portfolio?

Mid-cap companies, though riskier than large caps, offer high growth potential, and the mid-cap ETF mentioned has also delivered strong returns, nearing 100% over the last year.

Which US-focused ETF does the creator recommend and why?

The creator recommends a Fang ETF that includes top US tech companies like Facebook, Apple, Netflix, Google, and Amazon, which are globally dominant and have delivered a 135% return in the recent period.

What is the creator's view on investing in Chinese ETFs?

The creator is cautious about Chinese ETFs due to the underperformance of Chinese companies in recent times but acknowledges the potential for future growth in China's IT sector.

How does the creator suggest using sector-specific ETFs?

The creator suggests that if an investor believes in the growth of specific sectors like auto, FMCG, IT, or EV, they should consider sector-specific ETFs for focused exposure to that industry.

What is the key risk associated with the ETFs discussed in the video?

The ETFs discussed are categorized as high-risk, with potential volatility, especially in the small-cap sector. The creator advises cautious investment and not putting all funds in these ETFs due to the possibility of market corrections.