LIC MF's Sumit Bhatnagar bets on smart beta schemes as ETF inflows hit Rs 19,000 cr in April

Smart beta and factor–based ETFs that usage concern factors specified arsenic value, momentum, oregon debased volatility for scale operation alternatively than accepted marketplace capitalisation, are garnering capitalist attraction arsenic well, Sumit Bhatnagar, Fund Manager Equity astatine LIC Mutual Fund says. These trends bespeak the evolving scenery of the Indian ETF market, offering investors a assortment of options to diversify their portfolios and capitalize connected emerging opportunities, helium adds.

Inflows successful ETFs jumped 74% successful April to Rs 19,000 crore. While we support talking astir equities and communal funds, ETFs are steadily gaining popularity among the investors due to the fact that of their debased cost, liquidity and debased volatility. What are the emerging trends successful equity ETFs amid tariff scares and geo-political concerns?
The Indian Equity ETF continues to pull important inflows from assorted sets of investors. Interestingly, portion plain vanilla Exchange Traded Funds (ETFs) proceed to pull inflows, there’s a increasing involvement successful ETFs that absorption connected circumstantial sectors similar technology, healthcare, defence etc. These thematic ETFs let investors to people peculiar industries that are expected to execute well.

Also, Smart Beta and Factor – Based ETFs that usage concern factors specified arsenic value, momentum, oregon debased volatility for scale operation alternatively than accepted marketplace capitalisation, are garnering capitalist attraction arsenic well. These trends bespeak the evolving scenery of the Indian ETF market, offering investors a assortment of options to diversify their portfolios and capitalize connected emerging opportunities.

Global maturation forecasts are being trimmed down and successful that context, would you urge investors to little their instrumentality expectations from equities and hence spell for safer options similar the equity ETFs alternatively of taking banal enactment risks?
Given the caller downward revisions successful planetary maturation forecasts, it's understandable to see adjusting concern strategies. This situation tin so interaction equity markets, perchance starring to little returns. In specified a scenario, it mightiness beryllium prudent for investors to temper their instrumentality expectations from equities. They whitethorn see equity ETFs arsenic they tin connection an alternate by providing diversification crossed a wide scope of sectors and stocks, reducing the hazard associated with idiosyncratic banal selection. Alternatively, they tin see Smart Beta and Factor-Based ETFs arsenic these ETFs tin assistance seizure circumstantial concern factors specified arsenic debased volatility oregon quality, which mightiness execute successful uncertain markets.

Healthcare and financials person been 2 themes that person stood retired and astir ETF schemes having vulnerability to these sectors person fixed double-digit returns successful the past 1 year. Should 1 proceed investing successful some these themes, particularly healthcare fixed that the assemblage remains exposed to Trump's tariffs?
Healthcare and financials person so been beardown performers recently, with galore ETFs successful these sectors delivering decent returns. However, the imaginable interaction of Trump's tariffs connected the healthcare assemblage is simply a valid concern. President Trump's tariffs whitethorn summation costs for healthcare companies which could impact their profitability. These accrued costs mightiness beryllium passed connected to consumers oregon could pb to reduced margins for healthcare companies. Despite these challenges, the healthcare assemblage often remains resilient owed to the indispensable quality of its services and products. Innovations and an aging colonisation proceed to thrust demand.

Financial assemblage show is intimately tied to economical conditions. While planetary maturation forecasts are being trimmed, the fiscal assemblage tin inactive execute good if home economical conditions stay stable.

Within financials, would you urge staying distant from ETFs with vulnerability to PSU banks fixed their anemic show for the past 1 twelvemonth oregon would you inactive stake connected them, fixed that astir nationalist assemblage banks (7 retired of 12) person reported a bully acceptable of numbers?
PSU banks person had mixed show precocious and astir apt whitethorn beryllium excessively niche a class for investors. While the assemblage offers balanced risks-reward, a diversified attack focusing connected performers tin beryllium beneficial. Investors request to show assemblage developments intimately to set investments accordingly.

Between equity and debt, wherever would your wealth spell arsenic successful India we person already had a mates of complaint cuts and successful the US we tin person 2 this year?
Given caller complaint cuts successful India and imaginable cuts successful the US, a balanced attack is advisable. Equities connection higher returns but are volatile, portion indebtedness instruments supply diversification and superior gains with rising enslaved prices. Investors whitethorn look to diversify their portfolio with a premix of equities and bonds to negociate risks and seizure maturation opportunities. However, investors should archetypal consult an advisor to measure an individual's hazard profile.

With LIC MF’s 3 ETFs demonstrating stronger show compared to the broader marketplace mean implicit the past year, are determination immoderate plans to motorboat caller ETFs successful the adjacent future?
This reflects a coagulated strategy focused connected amended execution with a presumption to minimising tracking error. Looking ahead, LIC MF does privation to beryllium a superior subordinate successful the ETF and Index fund.

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