List of Well-known Indian ETFs

Indian investors are starting to choose ETFs, sometimes known as Exchange Traded Funds, more and more. Simple, reasonably priced track indexes like Nifty, Sensex, or even gold abound. Understanding well-known ETFs will enable you to make better decisions whether you are new to investing or wish to diversify your portfolio.
This is a basic overview of some of the most often used ETFs in India, fit for beginners.

What is an ETF?
Allow us to define an ETF before diving into the list:
An ETF is a basket of securities—such as bonds or stocks—likewise. It is sold on the stock market much as a standard share. You could buy or sell it any moment during market hours. Most ETFs monitor a sector or market index.

Advantages of ETFs Investing

• Low cost: Comparatively to mutual funds, the expense ratio is rather low.
  
• Diverse: One ETF exposes you to plenty of stocks.
  
• Simple trading: Buy and sell as though you were a stockholder.
  
• Open: You consistently know what the ETF owns.
  
• Good for long-term wealth creation.
  

Let us now review the most often used ETFs among Indian investors nowadays.

Most Popular ETFs in India

1. Nippon Japan Nifty BeES
   
   • Follows the Nifty 50 index.
     
   • Good for novices.
     
   • Long performance history and high liquidity.
     
2. SBI ETF with Nifty 50
   
   • Another choice in line with Nifty 50.
     
   • Under control by SBI Mutual Fund.
     
   • Minimal tracking error and low cost.
     
3. ICICI Prudential Nifty Next 50 ETF
   
   • Tracks the Nifty Next 50 index.
     
   • Covers businesses most likely to join Nifty 50.
     
   • Somewhat higher growth potential but more risk as well.
     
4. HDFC Sensex ETF
   
   • Follows BSE Sensex.
     
   • Makes investments in top thirty companies.
     
   • Simple and steady.
     
5. Kotak Banking ETF
   
   • Only concerned with the banking industry.
     
   • Tracks the Nifty Bank index.
     
   • Great if you think Indian banks will grow.
     
6. Nippon India Gold BeES
   
   • Tracks actual gold prices.
     
   • Safe choice during fluctuating market conditions.
     
   • Facilitates portfolio diversification.
     
7. Motilal Oswal Nasdaq 100 ETF
   
   • Exposes US tech stocks.
     
   • Includes companies like Apple, Microsoft, Amazon, etc.
     
   • Perfect for global diversification.
     

Items to Review Before Making ETF Investments

• Tracking mistakes: Lower is better.
  
• Expense ratio: Affects your returns.
  
• Liquidity: Higher liquidity makes buying and selling simpler.
  
• Underlying index: Find out what the ETF monitors.
  

ETF Investors: Who Should They Be?

• First-time traders seeking simplicity.
  
• Individuals reluctant to choose specific stocks.
  
• Long-term investors seeking reasonably priced solutions.
  
• Those seeking global markets or gold exposure.
  

Passive investing is much aided by ETFs. Selecting from the well-known ETFs helps you begin to lay a strong basis for your financial future.