Exchange Traded Funds (ETFs) might be a wise alternative if you’re seeking quick and cheap strategies to increase your money. Knowing the appropriate ETFs to invest in can let both novice and seasoned investors create money consistently without choosing specific equities.
Let’s define ETFs and identify which ones fit Indian investors most.
ETFs: What are they?
ETFs, often known as Exchange Traded Funds, are market-linked investments traded on stock exchanges much like shares. They make collective investments in bonds, equities, or another kind of asset. Buying one unit of an ETF so exposes you to multiple firms at once.
A Nifty 50 ETF, for instance, will comprise every 50 company on the Nifty index. This simplify investment and helps lower risk.
Why should one choose ETFs?
Searching for the appropriate ETFs to make investments in serves several purposes.
- Expense ratio is far lower than that of low cost mutual funds.
- Diversification: One fund houses several equities.
- Liquidity: One can purchase and sell any moment inside market hours.
- Transparency: You absolutely know what the ETF owns.
Top ETFs for Investment in India – 2025
For Indian investors, here are some of the most often used ETFs:
- Nippon Indonesia Nifty fifty ETF
- monitors the Nifty 50 index.
- Perfect for the long run in building riches
- rather low expenditure ratio
- monitors the Nifty 50 index.
- ETF based on ICICI Prudential Sensex
- Uses the BSE Sensex
- Appropriate for cautious investors and novices
- Uses the BSE Sensex
- ETF Nifty Bank SBI
- Turns mostly toward the financial industry.
- Excellent if you wish to work with top Indian banks
- Turns mostly toward the financial industry.
- Motilal Oswal ETF for NASDAQ 100
- Makes investments in leading US technology firms.
- Good for worldwide diversity
- Makes investments in leading US technology firms.
- ETF Nifty Next 50 for UTIs
- targets the following 50-strong group of corporations.
- Beneficial for those looking for upcoming market leaders
- targets the following 50-strong group of corporations.
- ETF for Bharat bonds
- makes investments in public sector bonds
- Among ETFs, safer and more steady choice for investment
- makes investments in public sector bonds
ETF Investing: How To Do It
- Opening a demat and trading account
- Choose the ETF depending on your objective.
- Purchase it like ordinary stock on the trade.
- Hold it for the long run to earn improving returns.
Last Words
Selecting appropriate ETFs for your investment will enable you to safely and low-cost increase your wealth. There is an ETF for any objective, whether your investment target is global technology companies or Indian markets.
Start little, be persistent, and see how gradually your money increases over time.