If you’re looking for the Best ETF to invest in 2025 that remains stable in an uncertain market then today's blog is for you. We have come up with some top ETFs to buy that might be suitable for enhancing your portfolio.
There are two goals that investors follow during today's volatile market conditions: viewing the long-term execution of wealth and capital preservation. Mutual funds have proven themselves over the years, but there is a better option, perhaps not as readily available as the prior one smarter, safer, and potentially more rewarding an option: Exchange Traded Funds (ETFs).
In this blog, we will explain why ETFs are a good idea, especially during uncertain times, and present the best performing ETFs that will help realize financial goals in uncertain market conditions.
What are ETFs?
ETFs are funds listed on stock exchanges like any stock, but they are traded under a name they carry; they track particular indices, sectors, or themes. Theirs is a marriage of the pluses of diversification (like mutual funds) with flexibility.
So let us pass straight into our carefully-selected list of top-performing ETFs drawn up according to diverse investment styles and risk appetites.
1. NiftyBees: The Basic ETF
Overview:
NiftyBees is India's first ETF, initiated in December 2001 by Benchmark Asset Management, which is now part of Nippon India Mutual Fund. It follows the Nifty 50 Index, representing India's top 50 companies.
Why you should consider it?
NiftyBees offers a return that is steady, smooth, and constant in the long run, making it good for putting in place portfolio defenses. For example, this ETF performed with flying colors while enjoying an unprecedented number of market crashes.
Price of NiftyBees in 2001: Rs.16
Current NiftyBees Price: Rs.270
The breakdown of that would be 20% annualized returns over the last 20 years as shown from the CAGR calculator, thus attesting to stability.
Suitability:
Ideal for conservative investors looking for wealth preservation and moderate growth.
Detailed Video
2. JuniorBees: Higher Risk, Higher Reward
Overview:
This is an investment in an ETF that tracks the performance of 50 companies after the Nifty 50. It invests only in mid-cap stocks and hence brings the prospect of higher growth potential, along with great risk.
Why you should consider it?
Historically, JuniorBees outran NiftyBees mainly due to the mid-cap exposure, making it a favorable investment for risk-seeking investors to earn higher returns.
Price of JuniorBees 15 years ago: Rs.40
The present price of JuniorBees: Rs.726
This takes a 21.3% CAGR, which shows that it can give higher returns than an ETF focused on large caps.
Suitability:
Best suitable for those investors who are moderate to high-risk takers for wealth accumulation in the long term.
3. HDFC Small Cap ETF: Preference for Growth
Overview:
This is a new ETF launched in November 2023, to focus on small-cap companies with a high growth potential. Small caps are like promising new young startups-they promise to be more volatile in short time frames, but good ones can deliver huge returns even in long time frames.
Why you should consider it?
In just 1.5 years, this ETF has delivered a 50% annualized return, showcasing the immense potential of small-cap investments.
Suitability:
Perfect for aggressive investors with a 10+ year horizon, looking to capitalize on high-growth opportunities.
Comparative Analysis of ETFs
|
ETF |
Risk Level |
Returns (CAGR) |
Investor Type |
|
NiftyBees |
Low to Moderate |
~20% (20+ years) |
Conservative, Long-term Focus |
|
JuniorBees |
Moderate to High |
~21.3% (15 years) |
Growth-Oriented, Risk Takers |
|
HDFC Small Cap ETF |
High |
~50% (1.5 years) |
Aggressive, Long-term Horizon |
Key Takeaways
- NiftyBees, JuniorBees, and HDFC Small Cap ETF are some top ETFs to invest keeping in mind the risk appetite, goal and horizon of investment, etc.
- Diversify Across ETFs: Spread your investments across multiple ETFs to balance risk and reward.
- Long-Term Perspective: ETFs shine over the long term, weathering market volatility effectively.
- Understand Your Risk Appetite: Choose ETFs that align with your financial goals and comfort with risk.
Hope this selection and analysis of ETFs will pique your interest. If you find this resource interesting and informative keep visiting our website for more related content.
Disclaimer: Not a buy or sell recommendation. No trading or investment advice is given. Past returns are not the guarantee of future returns. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.
