Why ETFs Are Gaining Popularity: Risks, Rewards And How They Compare With Stocks And Mutual Funds

Exchange-Traded Funds (ETFs) and BEES have gained popularity among investors seeking market exposure without picking individual stocks. Unlike direct stock investing, ETFs spread investments across a basket of stocks, helping diversify risk while allowing investors to focus on a particular sector. Sharad Kohli, Founder & Chairman, KCC Group, explains why ETFs offer a middle ground between direct equity investments and traditional mutual funds. While ETFs can deliver quicker returns, they can also be more volatile, especially when their underlying sector experiences sharp movements. Investors must understand the risks, investment horizon and sector exposure before choosing ETFs for their portfolios. Like, Share, and Subscribe to Business Today.