Introduction
Hey there, fellow investor! Are you looking to dip your toes into the exciting world of Indian ETFs? Well, you've come to the right place! Today, we're going to chat about the top 15 ETFs you might want to consider for your investment portfolio in the Indian market. These ETFs offer a great way to diversify your investments and potentially grow your wealth. So, let's dive in and explore these fantastic options together!
What are ETFs?
Before we jump into our list, let's quickly go over what ETFs are:
- Exchange-Traded Funds (ETFs) are investment funds traded on stock exchanges.
- They typically track an index, sector, commodity, or other assets.
- ETFs offer diversification, lower expense ratios, and flexibility.
- ETF is like stock, doesn’t have any expiration like an index future.
You can invest in all sectoral stocks by investing in ETFBees.
Click here for a Demat Account Opening in Zerodha (Investing and mutual fund free, F&O Per order Rs 20)
Top 15 ETFs in the Indian Market
1. Nifty 50 ETF or NIFTYBEES
The Nifty 50 ETF tracks the performance of the 50 largest Indian companies. It's a great way to get exposure to the cream of the crop in the Indian stock market. The ETF price will follow the Nifty 50 index price movement.
2. Nifty Bank ETF or BANKBEES
If you're interested in the banking sector, this ETF is for you. It follows the top banking stocks in India, giving you a slice of this crucial industry. The ETF price will follow the Nifty bank index price movement.
3. Sensex ETF OR SENSEXBEES
This ETF mirrors the performance of the top 30 most established and financially sound companies listed on the Bombay Stock Exchange. The ETF price will follow the Sensex index price movement.
4. Gold ETF or GOLDBEES
For those who love the glitter of gold, this ETF allows you to invest in gold without the hassle of physical storage and expiry like a futures contract. You can track with gold price. Taxation will be considered as a capital gain tax if you book a profit.
5. Nifty Next 50 ETF
This ETF tracks the next 50 largest companies after the Nifty 50, offering exposure to potentially faster-growing mid-sized companies. The ETF price will follow the Nifty Next 50 index price movement.
6. Nifty IT ETF
Tech enthusiasts, listen up! This ETF focuses on the top IT companies in India, a sector known for its growth and innovation. The ETF price will follow the Nifty IT index price movement.
7. Nifty Pharma ETF
With the healthcare sector gaining importance, this ETF exposes you to leading pharmaceutical companies in India. The ETF price will follow the Nifty Pharma index price movement.
8. Nifty Midcap 150 ETF
This ETF is perfect for those looking to invest in medium-sized companies with potential for higher growth. It consists of the top 150 mid-cap stocks. The ETF price will follow the Nifty midcap index price movement.
9. Nifty Auto ETF
Car lovers, this one's for you! This ETF tracks the performance of automobile and auto component companies in India. The ETF price will follow the Nifty auto index price movement.
10. MON100 ETF
MON100 ETF means Motilal Oswal Nasdaq Top 100 company fund, which is a USA exchange-traded fund. It is offered by Motilal Oswal Mutual Fund, and you can even buy ETFs through any broker account. The ETF price will follow the Nasdaq 100 index price movement.
11. Nifty Infrastructure ETF
For those who believe in India's growth story, this ETF invests in companies involved in infrastructure development. It consists of all the infrastructure exchange listed companies.
12. MAFANG ETF
MAFANG ETF means MIRAI ASSET NYSE FANG + ETF, which is a Top 10 Technology company of the Nasdaq 100 index. It is offered by MIRAI ASSET Mutual Fund, and you can even buy ETFs through any broker account.
13. Nifty Dividend Opportunities 50 ETF
If you're looking for regular income, this ETF invests in companies known for consistent dividend payouts a such as interest payout, and you will get benefits from Stock price gain.
14. Nifty PSU Bank ETF
This ETF tracks public sector banks in India, offering exposure to government-owned banking institutions like SBI, BOB, and PNB. The ETF price will follow the Nifty PSU index price movement.
15. Nifty Alpha Low-Volatility 30 ETF
For the risk-averse investor, this ETF aims to provide returns with lower volatility compared to the broader market.
Factors to Consider When Choosing ETFs
When picking any ETFs for your good portfolio, keep these points in mind:
- Expense ratio: Lower is generally better.
- Tracking error: How closely the ETF follows its underlying index.
- Liquidity: Higher trading volumes usually mean better liquidity.
- Your investment goals and risk tolerance.
How to Invest in ETFs in India
- Open a Demat & Trading Account – Click Here To Open a Demat Account .
- Pick an ETF – Choose based on your risk profile and investment goal.
- Place the Order – Use your trading platform to buy the ETF like a stock.
- Track and Rebalance – Monitor your portfolio and make adjustments periodically.
Remember, it's always a good idea to do your own research and consult with a financial advisor before making investment decisions!