Among Indian investors, exchange-traded funds (ETFs) are becoming very popular. They provide an easy and reasonably priced approach to fund a basket of commodities, bonds, or equities. This article will help you grasp your choices and make wise judgments if you’re trying to find the finest ETFs to invest in.
ETFs – What are they?
Like individual equities, ETFs are financial tools traded on stock markets. Their assets—stocks, bonds, commodities, or otherwise—allow investors to diversify their portfolios without purchasing each item individually. (Lakshmishreen)
Why Think About ETFs?
- Invest in a variety of assets one transaction at once.
- Buy and sell ETFs on stock markets with ease.
- Comparatively to mutual funds, cost-effective lower expense ratios.
- Daily disclosure of holdings allows you to precisely know what you are investing in.
Top ETFs to Invest in India Through 2025
Based on performance, cost ratios, and market coverage, here are some of the top ETFs you may want to invest in:
- Junior BeES ETF from Nippon India
- Tracks: Nifty Next 50 Index
- One-year return: 15.45%
- Five-year return: 125.92%
- Why Invest: Provides access to rising big-cap corporations set for expansion. (5 pais, JustETF)
- Tracks: Nifty Next 50 Index
- SBI Nifty Next 50 ETF (SETFNN)
- Tracks: Nifty Next 50 Index
- One-year return: 16.32%
- Five-year return: 126.35%
- Why Invest: Captures possible future leaders by diversifying outside of the top 50 firms. (5 pais)
- Tracks: Nifty Next 50 Index
- Kotak Nifty PSU Bank ETF
- Tracks: Nifty PSU Bank Index
- Three-year return: 121.02%
- Why Invest: Emphasizes public sector banks, which support India’s financial system absolutely. (Wikipedia Lakshmishree)
- Tracks: Nifty PSU Bank Index
- Mirror Asset NYSE FANG+ Index Tracking
- Three-year return: 143.71%
- Why Invest: Exposes one to worldwide tech behemoths including Google, Amazon, Facebook, and Netflix. (Lakshmishree)
- Three-year return: 143.71%
- Invesco India Gold ETF (IVZINGOLD)
- Tracks: Domestic gold prices
- One-year return: 30.33%
- Why Invest: Perfect for those wishing to diversify with a commodities asset and fight inflation. (5 Pais)
- Tracks: Domestic gold prices
- CPSE ETF
- Tracks: Central Public Sector Enterprises
- Five-year CAGR: 31.39%
- Why Invest: Provides access to businesses under government ownership in many different fields. (Mommy Therine, Angel One, Thankyou Trade App)
- Tracks: Central Public Sector Enterprises
- ICICI Prudential Nifty Midcap 150 ETF
- Tracks: Nifty Midcap 150 Index
- Three-year return: 67.12%
- Why Invest: Targets highly growth potential mid-sized businesses. (Reddit, Lakshmishree)
- Tracks: Nifty Midcap 150 Index
- Nippon India ETF Gold BeES
- Tracks: Domestic gold prices
- Three-year return: 57.56%
- Why Invest: Offers a practical approach free from physical storage issues for gold. (Lakshmishree)
- Tracks: Domestic gold prices
- HDFC Nifty50 Value 20 ETF
- Tracks: Nifty50 Value 20 Index
- Three-year return: 53.39%
- Why Invest: Emphasizes value equities with consistent return possibility. (Lakshmishree)
- Tracks: Nifty50 Value 20 Index
- SBI 10 Year Gilt ETF (SETF10GILT)
- Tracks: 10-year government assets
- Three-year return: 27.65%
- Why Invest: Perfect for cautious investors looking for consistent profits with less risk. (5 pais)
- Tracks: 10-year government assets
ETF Investing: How To Do It
- Open a demat and trading account using an internet platform or regulated broker.
- Choose the ETF depending on your risk tolerance and investing objectives.
- Order something here. Like stocks, buy or sell ETFs during market hours.
- Review your assets often to be sure they support your financial goals.
Last Thoughts
One sensible approach to diversify your portfolio and reach your financial objectives is by investing in the top ETFs. There’s an ETF for your requirements whether your priorities are stability, income, or growth. Always take your investment horizon and risk tolerance into account; if required, see a financial professional.