Why ETFs Are Powerful? Top 10 ETFs Explained | Pushkar Raj Thakur

Introduction to Sussex and Its Companies

Overview of Sussex

• Sussex includes 30 top companies listed on the Indian stock market, specifically referencing the BSE.

• The inception of Sussex was in January 1986, a significant year for its establishment.

Current Status of Companies

• As of now, only four companies from the original 30 remain listed in Sussex since its inception.

• This indicates that 26 companies have either ceased to exist or have exited from Sussex over the years.

Investment Insights and Returns

Historical Performance

• The initial value of Sussex in 1986 was ₹561, which has dramatically increased to approximately ₹85,700 today.

• Calculating CAGR (Compound Annual Growth Rate), it stands at about 13.76% over a span of 39 years.

Potential Returns on Investment

• An investment of ₹1 crore today could grow to ₹152 crores over this period at a CAGR of 13.76%.

• If one had invested ₹1 lakh initially, it would now be worth ₹1 crore and 52 lakhs.

Index Investing Strategy

Importance of Index Investing

• Warren Buffett's bet against hedge fund managers highlighted the superiority of index investing like S&P 500 over actively managed funds.

• Index investing is also referred to as passive investing; it requires less active management and decision-making.

ETFs for Long-Term Growth

• Discussion on top ETFs (Exchange-Traded Funds), emphasizing their role in achieving long-term growth while diversifying portfolios.

Recommended ETFs for Investment

Nifty ETFs

• Nifty 20 ETF is highlighted as popular with an expense ratio of just 0.04%, showing returns above 100% over five years.

Mid Cap and Small Cap Investments

• Mid Cap ETF has an expense ratio of 0.05%, focusing on top mid-cap companies.

• Small Cap ETF offers exposure to smaller firms with an expense ratio of around 0.10%.

Diversification Strategies

Next Level Investments

• Nifty Next 50 ETF provides opportunities in emerging companies that may soon enter the Nifty index, boasting a five-year return rate higher than Nifty itself.

Momentum Investments

• Momentum Mom 30 ETF allows investments in stocks currently performing well within the market.

International Market Exposure

Hong Kong and China Investments

• Hang Seng Twenty ETF focuses on Hong Kong-listed companies with impressive returns noted at around 44% over one year.

US Market Opportunities

The MEFANG index offers exposure to major US tech firms like Facebook, Apple, Netflix, Google, Amazon with substantial historical returns noted at around 238% over five years.

Defense Sector Considerations

• Motilal Oswal’s India Defense Sector ETF shows promising returns at about18 % annually , providing essential exposure amidst global defense contracts .

Portfolio Summary

• A diversified portfolio can include various sectors including international markets while maintaining focus on equity markets for long-term growth potential .

Final Thoughts

• Investors are encouraged to explore these ETFs through SIP (Systematic Investment Plan), requiring a demat account for ease in transactions .