The essential guide to choosing the right ETF

Exchange-traded funds (ETFs) have surged in popularity in recent years. Since these passive funds track an underlying index, say the Sensex or Nifty, they offer low-cost exposure to a diversified range of assets. This makes them an attractive option for many investors, particularly those looking to build long-term wealth without actively managing their investments. However, with over 230 ETFs currently available in the market, selecting the right one can be a daunting task. While ETFs are often seen as an easy way to invest, choosing the wrong ETF can lead to suboptimal returns or unnecessary costs. Sometimes, you may even find it tough to sell your investment in the fund. Categories No. of funds Assets under management (Rs in Crore) Equity: Diversified 96 Rs 5,26,714 Equity: Sectoral and Thematic 72 Rs 74,551 Equity: International 6 Rs 13,898 Debt ETFs 32 Rs 93,705 Commodities: Gold & Silver 30 Rs 69,463 No. of funds and assets as of Feb 28, 2025

This article was originally published on April 03, 2025.