Imagine sipping your morning coffee while thinking about how to grow your savings without taking on too much risk. Mutual funds and stocks are common options, but have you ever considered a strategy that combines the benefits of both? That’s where ETFs, or Exchange Traded Funds, come into play. Investing in the best ETFs in India can provide a balanced approach, offering diversification with the flexibility to trade like stocks.
In this guide, we will explore how these ETFs work, which ones are the best-performing ETFs, and how they can fit into your overall investment strategy. Let’s dive in and discover how you can make the most of your money with these powerful investment tools.
Looking for the best ETFs in India for 2024? Here's a curated list of the top 15 ETFs based on their 3-year performance (as of 2024), designed to help you make an informed decision:
| Best ETFs in India for 2024 | 3yr Return |
|---|---|
| 1. Kotak Nifty PSU Bank ETF | 207.20% |
| 2. Nippon India ETF PSU Bank BeES | 207.43% |
| 3. BHARAT 22 ETF | 189.75% |
| 4. ICICI Prudential Nifty Midcap 150 Etf | 101.04% |
| 5. Mirae Asset NYSE FANG+ ETF | 73.81% |
| 6. HDFC Nifty50 Value 20 ETF | 71.93% |
| 7. UTI S&P BSE Sensex ETF | 50.16% |
| 8. Nippon India ETF Nifty 50 BeES | 54.33% |
| 9. HDFC Nifty100 Low Volatility 30 ETF | 20.52% |
| 10. Nippon India Etf Nifty Bank Bees | 44.03% |
| 11. Nippon India ETF Gold BeES | 48.70% |
| 12. Invesco India Gold ETF | 50.43% |
| 13. Nippon India Silver ETF | 36.33% |
| 14. Bharat Bond ETF - April 2030 | 20.24% |
| 15. Bharat Bond ETF - April 2031 | 19.95% |
These best-performing ETFs in India provide diverse investment opportunities across various sectors, from banking to bonds, gold, and silver, making them suitable for different risk profiles and financial goals in 2024.
ETFs, or Exchange-Traded Funds, are investment funds that hold a collection of various assets, such as stocks, bonds, or commodities, which you can buy and sell on the stock market, just like individual stocks. Imagine you’re shopping for fruits—you could buy an apple, an orange, or a bunch of bananas separately or choose a selection that includes a little bit of everything. ETFs work similarly, providing exposure to diverse assets in one go. This makes them a convenient and diversified option for many investors in India.
One of the key features of ETFs is their structure, which allows investors to buy and sell shares throughout the trading day at market prices. This provides liquidity and flexibility to investors, allowing them to enter and exit positions easily. It is also known for its low expense ratios compared to traditional mutual funds, making it a cost-effective investment option.
Here is a complete overview of the Best ETFs to invest in India, along with their Expense ratio, AUM, Market Cap, Risk, and Trend chart.
KOTAKPSUBK is one of the best ETFs in India which focuses on investing in public sector banks, providing investors with exposure to this banking industry segment. With the banking sector significantly contributing to India's economy, KOTAKPSUBK offers investors an opportunity to capitalize on the performance of PSU banks listed on the NSE.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 54.75 | 207.20 | 184.63 |
Nippon India ETF PSU Bank BeES tracks the Nifty PSU Bank Index, offering exposure to stocks of public sector banks in India. Its appeal depends on individual investment goals and risk tolerance, with potential diversification benefits across the PSU banking sector. However, like any investment, it carries risks, requiring careful consideration and consultation with a financial advisor or stock broker like lakshmishree before investing.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 54.68 | 207.43 | 185.49 |
BHARAT 22 ETF is considered one of the best ETFs to invest in due to its diversified portfolio of blue-chip stocks from key sectors of the Indian economy. It offers investors exposure to well-established companies with strong growth potential and the benefits of diversification and liquidity that Exchange-traded funds provide.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 67.94 | 189.75 | 259.67 |
ICICI Prudential Nifty Midcap 150 Etf (MIDCAPIETF) is a beginner ETF India that focuses on mid-cap companies, offering investors exposure to this market segment with growth potential higher than large-cap stocks but lower than small-cap stocks. Mid-cap stocks are known for delivering attractive returns over the long term, making MIDCAPIETF a suitable choice for investors seeking growth opportunities in the mid-cap segment.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 51.74 | 101.04 | 179.38 |
Mirae Asset NYSE FANG+ ETF aims to mirror the NYSE® FANG+™ Index, encompassing top technology and tech-enabled firms like Facebook, Apple, Amazon, Netflix, and Google. It presents an opportunity for investors to tap into the growth potential of leading global tech giants. However, it's essential to note the associated risks, including market volatility and regulatory uncertainties, before investing.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 50.74 | 73.81 | 99.85 |
HDFC Nifty50 Value 20 ETF (HDFCVALUE) is the best nifty 50 ETF and a value-oriented Exchange-traded fund that aims to invest in stocks trading at a discount to their intrinsic value. Value investing focuses on identifying undervalued stocks with the potential for long-term capital appreciation. HDFCVALUE allows investors to benefit from the investment strategy of buying quality stocks at discounted prices.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 45.14 | 71.93 | 71.93 |
UTI S&P BSE Sensex ETF aims to mirror the performance of the S&P BSE Sensex Index, comprising India's top 30 listed companies. This Exchange-traded funds offers investors a convenient way to gain exposure to the Indian equity market's blue-chip segment. While it provides diversification and potential for long-term capital growth, investors should assess market risks before investing.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 27.99 | 50.16 | 133.29 |
Nippon India ETF Nifty 50 BeES is one of the best Nifty50 ETFs to invest because it tracks the Nifty 50 index, which comprises the top 50 companies listed on the National Stock Exchange (NSE). By investing in NIFTYBEES, investors gain exposure to a diversified portfolio of blue-chip companies across various sectors of the Indian economy, making it a popular choice for broad market exposure.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 31.89 | 54.33 | 141.34 |
HDFC Nifty100 Low Volatility 30 ETF aims to invest in stocks with lower volatility, offering investors stability and potentially reducing downside risk. HDFCLOWVOL focuses on companies that exhibit lower price volatility than the broader market, making it suitable for investors seeking a defensive investment strategy.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 14.37 | 20.52 | 20.52 |
Nippon India Etf Nifty Bank Bees (BANKBEES) is a beginner ETF in India because it tracks the Bank Nifty index, which comprises the most liquid and large-cap banking stocks listed on the NSE. This ETF offers investors exposure to India's banking sector, which is crucial to the country's economic growth. Investing in BANKBEES allows investors to capitalize on the performance of leading banks in India.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 16.90 | 44.03 | 88.27 |
Nippon India ETF Gold BeES (GOLDBEES) is one of the best gold ETFs to invest backed by physical gold, offering investors exposure to the price movements of gold without the need for physical ownership. By investing in GOLDBEES, investors can access the returns of gold bullion, considered a safe-haven asset and a hedge against inflation and currency depreciation.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 19.99 | 48.70 | 72.44 |
Invesco India Gold ETF is also one of the best Gold ETFs; it is an investment fund that aims to track the price of gold in India. By investing in these Exchange-traded funds, investors gain exposure to the performance of gold without needing to physically own or store the precious metal. While it offers liquidity and potential for capital appreciation, investors should consider market risks and fluctuations in gold prices before investing.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 20.95 | 50.47 | 75.88 |
SILVERBEES is the best silver ETF backed by physical silver. By investing in SILVERBEES, investors can gain exposure to the price movements of silver bullion, which is considered a valuable industrial and precious metal. SILVERBEES offers investors a convenient way to invest in silver without needing physical storage.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 12.58 | 36.33 | 36.33 |
Bharat Bond ETF - April 2030 offers similar benefits as its 2031 counterpart, providing investors with exposure to a diversified portfolio of high-quality bonds with a fixed maturity date. It is cost-effective and tax-efficient, making it an attractive option for investors seeking stability and income generation. However, investors should evaluate their investment objectives and risk tolerance before investing.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 8.50 | 20.24 | 40.31 |
Bharat Bond ETF - April 2031 is considered one of the best ETFs to invest in 2024 due to its fixed maturity date, diversification benefits from investing in high-quality bonds, cost-effectiveness, and tax efficiency. However, investors should assess their goals and risk tolerance before investing.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 8.54 | 19.95 | 25.39 |
These are Best Performing ETFs last 10 years in India, based on their 5-year and 10-year performance. The list features two of the best gold ETFs in India, along with three sector-specific ETFs that have stood out for their strong returns.
| Best Performing ETFs last 10 years in India | 5Yr Return | 15Yr Return |
|---|---|---|
| 1. Nippon India ETF Nifty 50 BeES | 131.01% | 707.9% |
| 2. Nippon India ETF Gold BeES | 95.10% | 467.4% |
| 3. Invesco India Gold ETF | 89.54% | 288.0% |
| 4. UTI S&P BSE Sensex ETF | 119.91% | 200.8% |
| 5.BHARAT 22 ETF | 228.94% | 172.2% |
Here’s a look at the Best ETFs in India for November 2024, showcasing the five ETFs that have delivered the best returns in 1years and have good potential to grow
| Best ETFs in India for November 2024 | 1 Yr Return |
|---|---|
| 1. Mirae Asset Nifty Next 50 ETF | 67.5% |
| 2. SBI Nifty Junior ETF | 64.0% |
| 3. Nippon India ETF Nifty Next 50 Junior BeES | 62.16% |
| 4.Kotak Nifty Alpha 50 ETF | 58.90% |
| 5. Nippon India Nifty Auto ETF | 52.78% |
Here's a difference between ETFs and Mutual Funds
You can invest in the Best ETFs in India without any hassle in easy steps using the below instructions:
When considering investing in ETFs, it's crucial to assess various factors to make informed decisions:
Understanding the tax implications of exchange-traded funds (ETFs) is crucial for maximizing returns. Here's a brief overview of how income and capital gains from ETF investments are taxed:
Equity ETFs
For ETFs primarily investing in equity, the tax treatment is similar to that of equity shares:
Other ETFs
For ETFs with less than 35% investment in domestic equities, tax treatment differs based on the acquisition date.
Investing in Exchange Traded Funds (ETFs) offers various benefits, but it's crucial to be aware of the potential risks involved. Here are some key risks associated with ETF investments:
ETFs represent a valuable investment vehicle that aligns with various investment objectives, whether seeking long-term growth, income generation, or capital preservation. With careful consideration of the factors discussed in this article about the best ETFs in India, investors can harness the potential of ETFs to achieve their financial goals and navigate the ever-changing landscape of the investment market.
The Best ETF in India 2024 includes Kotak Nifty PSU Bank ETF, Nippon India ETF PSU Bank BeES, BHARAT 22 ETF, ICICI Prudential Nifty Midcap 150 Etf and Mirae Asset NYSE FANG+ ETF for growth potential. However, it depends on your financial goals and risk tolerance.
The best-performing ETFs in last 10 years includes Nippon India ETF Nifty 50 BeES, Nippon India ETF Nifty 50 BeES, Invesco India Gold ETF, UTI S&P BSE Sensex ETF and BHARAT 22 ETF, which have given the best returns with stability.
Check the complete list of Best Gold ETFs to invest.
Kotak Silver ETF FoF is the best silver ETF in India, providing an average return of 36.56% in the last 3 years. This fund aims to replicate the performance of silver prices, offering investors an opportunity to gain exposure to this precious metal without holding physical silver.
HDFC NIFTY Smallcap 250 ETF is the smallcap ETF in India. It tracks the NIFTY Smallcap 250 Index, providing investors with exposure to a diversified range of small-cap stocks. With a focus on high growth potential, this ETF has shown impressive performance, making it an attractive option for investors seeking to capitalize on the growth of emerging companies.
You can invest in ETFs through a brokerage account. Choose suitable ETFs based on your investment goals and risk appetite. To get your Free Demat account.
ETF investments are subject to capital gains tax upon sale or redemption. Short-term gains are taxed at the investor's income tax rate.
Risks include market volatility, liquidity issues, and tracking errors. It's essential to assess these risks before investing.
Disclaimer: This article is intended for educational purposes only. Please note that the data related to the mentioned companies may change over time. The securities referenced are provided as examples and should not be considered as recommendations.
