How To Choose The Right ETF: Sector Outlook, Risk, Benchmark Selection And Long-Term Investing Tips

Choosing the right Exchange-Traded Fund (ETF) requires more than checking past performance. Investors should assess the outlook of the underlying sector, understand market volatility and select suitable benchmarks when investing in index-based products such as BEES. In this Business Today discussion, Sakshi Batra speaks with Sharad Kohli, Founder & Chairman, KCC Group, about the key factors investors should consider before selecting ETFs. He explains the importance of diversifying across sectors, tracking sector rotation and avoiding frequent trading, as transaction costs and expense ratios can reduce returns. ETFs, like mutual funds, may be better suited to long-term investment strategies.