Nifty ETF Strategy: Why Expert Prefers Index ETFs Over Midcaps, Smallcaps & Bank Stocks

Nifty ETFs are emerging as the preferred route for gaining equity exposure over the next two to three months, with a focus on managing risk. Amit Goel, Co-Founder & Chief Global Strategist, Pace 360, says the firm is currently buying Nifty ETFs during market declines rather than taking exposure to individual stocks, midcaps, smallcaps or banking stocks. He believes Nifty valuations are near the lower end of their historical range, with the index trading at around 18.25–18.5 times projected March 2027 earnings. The strategy reflects a preference for broad-market exposure as global equities potentially enter another rally phase.