Are you looking for a smart way to grow your savings while controlling risks? Mutual funds and stocks are often the go-to options, but have you explored the growing popularity of exchange-traded funds (ETFs)? Investing in the best ETFs in India gives you the perfect blend of diversification and the flexibility to trade just like stocks, making them a powerful choice for modern investors.
In this article, we’ll guide you through everything you need to know about ETFs, including how they work, the best-performing ETFs in India, and why they could be the ideal addition to your portfolio in 2025. Let’s dive in and unlock the potential of ETFs for your financial growth.
The top 10 ETFs in India for 2025 are those delivering strong returns and offering diversified exposure to key market sectors. These top-performing ETFs are ideal for maximizing growth while minimizing risk. Explore the table below to find detailed insights into their performance.
| Best ETFs in India for 2025 | 3yr Return |
|---|---|
| 1. Mirae Asset NYSE FANG+ ETF | 152.54% |
| 2. Kotak Nifty PSU Bank ETF | 140.23% |
| 3. BHARAT 22 ETF | 122.20% |
| 4. Nippon India ETF PSU Bank BeES | 121.52% |
| 5. ICICI Prudential Nifty Midcap 150 Etf | 72.64% |
| 6. HDFC Nifty50 Value 20 ETF | 62.79% |
| 7. Invesco India Gold ETF | 60.25% |
| 8. Nippon India ETF Gold BeES | 56.90% |
| 9. HDFC Nifty100 Low Volatility 30 ETF | 48.46% |
| 10. Nippon India Silver ETF | 46.35% |
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 2025.
ETFs are investment funds that hold a mix of assets like stocks, bonds or commodities which you can trade on the stock market just like individual stocks. Think of it like a fruit basket—you can have a variety of fruits in one package instead of buying them individually. Similarly, ETFs offer exposure to multiple assets in one investment, making it a convenient option for Indian investors.
A unique feature of ETFs is that they can be bought and sold throughout the day at market prices, offering high liquidity and flexibility. Also, ETFs are known for their low expense ratio compared to traditional mutual funds, which makes them a cost-effective and efficient investment option for those who want diversification and growth.
Dive into a comprehensive overview of the 10 best ETFs in India for 2025, carefully curated to help you make informed investment decisions. This section covers essential details such as expense ratios, AUM, market capitalization, risk levels, and trend charts, giving you a clear picture of each ETF’s performance and potential.
Mirae Asset NYSE FANG+ ETF tracks the NYSE® FANG+™ Index, which includes innovative technology and technology-enabled companies at the forefront: Facebook, Apple, Amazon, Netflix, and Google. This will enable investors to catch up with leading global tech giants and unlock their future growth potential. Before investing, however, prospective investors should be aware that risks are present in the form of market volatility and regulatory uncertainty.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 83.35 | 152.54 | 175.82 |
The KotakPSUBK is one of the best ETFs in India, which is targeted at investing in Public Sector Banks. Therefore, it exposes this banking industry segment to the investing community. Because the banking sector has played a major role in India's economy, this index fund can be a very good avenue for the investor to reap benefits arising from the performance of PSU banks listed on NSE.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 6.85 | 140.23 | 164.46 |
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 (%) |
| 13.28 | 122.20 | 259.67 |
This scheme aims to track the Nifty PSU Bank Index returns through investment in securities constituting the Nifty PSU Bank Index. The scheme would therefore be attractive to an individual investor with objectives and risk appetite concerning diversification in the PSU banking segment. Like any other investment alternative, this one, too has its share of risks and, therefore should be considered with due caution but not without consulting a financial adviser or stockbroker such as lakshmishree, prior to making an investment decision.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 9.28 | 121.52 | 167.25 |
ICICI Prudential Nifty Midcap 150 Etf would fall into one of the newer ETFs focusing on mid-cap companies. One will note herein the opportunity of getting exposure in a market that usually has higher growth opportunities than large cap, while pretty low compared with small cap investment stocks.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 15.19 | 72.64 | 198.86 |
HDFC Nifty50 Value 20 ETF (HDFCVALUE) is the best nifty 50 ETF, a value-oriented Exchange-traded fund that aims to create wealth by predominantly investing in stocks trading at a discount to intrinsic value. Value investing focuses on identifying undervalued stocks with the potential for long-term capital appreciation.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 12.80 | 62.79 | 62.96 |
Invesco India Gold ETF is another best Gold ETFs, which is an investment fund intended to shadow the gold price in India. By investing in these Exchange-traded funds, investors get exposure to the performance of gold without necessarily having to own or store the precious metal physically.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 26.28 | 60.25 | 93.92 |
Nippon India ETF Gold BeES (GOLDBEES) is one of the best Gold ETFs to invest in that is backed by physical gold. It allows investors to take exposure in the movements in gold prices without physically holding gold. In such a case, the investment in GOLDBEES would provide returns linked to gold bullion, a safe-haven asset and a hedge against inflation and currency depreciation.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 22.28 | 56.90 | 85.71 |
HDFC Nifty 100 Low Volatility 30 ETF: Investment in relatively low volatile scripts would provide stability to the investors and, at the same time, will reduce the downside risk. The scheme will invest in companies showing lower price volatility compared to the overall market which is beneficial for the investors following a more defense-oriented investment approach.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 10.50 | 48.46 | 48.15 |
SILVERBEES is the best silver ETFs backed by physical silver. By being exposed to this investment through SILVERBEES, the investor attains the return represented in price changes of the underlying instrument, such as the highly valued industrial metal or a very valuable precious metal in silver bullion.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 24.36 | 46.35 | 46.12 |
These are Best Performing ETFs in the last 10 years, 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 | 10Yr Return |
|---|---|---|
| Nippon India ETF Nifty 50 BeES | 99.07% | 203.93% |
| UTI S&P BSE Sensex ETF | 93.33% | 221.80% |
| BHARAT 22 ETF | 204.64% | 191.69% |
| Invesco India Gold ETF | 93.92% | 162.68% |
| Nippon India ETF Gold BeES | 85.71% | 157.92% |
Here’s a look at the Best ETFs in India for February 2025, showcasing the 5 ETFs that have delivered the best returns in 1years and have good potential to grow
| Best ETFs in India for February 2025 | 1 Yr Return |
|---|---|
| Nippon India Nifty Auto ETF | 21.94% |
| Mirae Asset Nifty Next 50 ETF | 19.07% |
| SBI Nifty Junior ETF | 17.12% |
| Nippon India ETF Nifty Next 50 Junior BeES | 16.85% |
| Kotak Nifty Alpha 50 ETF | 15.21% |
Regarding investment options, ETFs and mutual funds are often compared for their unique features. While both are excellent tools for diversification, understanding their key differences can help you decide which suits your financial goals better.
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.
While ETFs offer numerous advantages, they also come with certain risks that investors should consider before diving in. Understanding these risks will help you make informed decisions:
Also Check:
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 2025 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 the last 10 years include 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.
To invest in ETFs in India, you need a demat and trading account with lakshmishree. You can then buy and sell ETFs directly through the stock exchange, just like regular stocks.
ETF investments are subject to capital gains tax upon sale or redemption. Short-term gains are taxed at the investor's income tax rate.
ETFs carry market risks, liquidity risks, tracking errors, and sector concentration risks. It can further result in volatility in prices, inability to buy or sell shares, or tracking error versus the Index.
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.
