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Best ETFs to Invest in India

26 July 2022

An ETF, or Exchange-Traded Fund, is a collection of securities that trade on the stock market and is similar to a stock. Exchange-Traded Funds pool the money of many investors and use it to buy a variety of tradable financial assets, including derivatives, debt securities like bonds, and shares.

Most ETFs are registered with the Securities and Exchange Board of India (SEBI). It is an appealing option for investors with limited expertise in the stock market.

ETFs share traits with both shares and mutual funds, as was previously mentioned if you're wondering what an ETF fund is or how it operates, here's your answer.

Typically, they are traded in the stock market as shares made possible by creating blocks. All significant stock exchanges list ETF funds, which can be bought and sold according to the need during the equity trading period.

The costs of the underlying assets included in the resource pool determine changes in an ETF's share price. The share price of the ETF increases if the price of one or more assets increases correspondingly, and vice versa.

Exchange-Traded Funds are being regarded as a suitable investment option by an increasing number of investors, so it is vital to recognize the top and best ETFs to invest in, in India. As a result, we have compiled a list of the best ETF Funds in India in this blog.

India's Top ETFs to Invest in for 2022

The six broad categories of Exchange-Traded Funds in India are Index ETFs, Gold ETFs, Sector ETFs, Bond ETFs, Currency ETFs, and Global Index ETFs. Here are some of the best ETF to invest in 2022 India-

Index ETFs

Gold ETFs

Sector ETFs

Bond ETFs

Currency ETFs

Global Index ETFs

Motilal Oswal NASDAQ 100 ETF

IDBI Gold ETF

Nippon ETF Consumption

Nippon ETF Long Term Gilt

India Earnings WisdomTree Fund (EPI)

Nippon ETF Hang Seng BeES

HDFC Sensex ETF

Invesco India Gold ETF

Nippon ETF Infra BeES

SBI-ETF 10Y Gilt

Market Vectors- India Rupee/USD ETN

Motilal Oswal NASDAQ 100 ETF

SBI ETF Sensex

Aditya Birla Sun Life Gold ETF

Kotak NV 20 ETF

LIC MF Government

 

 

Edelweiss ETF - NQ30

SBI ETF Gold

ICICI Prudential NV20 ETF

Nippon ETF Liquid BeEs

 

 

UTI Sensex ETF

HDFC Gold ETF

 

 

 

 

Factors to Consider Before Investing in ETFs

  • Brokerage Fees and DEMAT Account

Since ETFs are traded like shares, there are several expenses that have to be incurred to purchase them. This is generally done by the fund managers, who charge a nominal commission fee for such transactions.

You can also opt to transact by yourself on the share market and not involve any fund managers in the process. A Demat account has to be opened in such a situation. Operating a Demat account requires basic knowledge of stock market transactions and their associated technique, which might be difficult for a novice.

  • The Volatility of The Stock Market

ETF companies listed on a stock exchange are subject to price fluctuations as per market trends. They are not stable like government bonds. Earning a profit or incurring a loss depends heavily on the stock market conditions.

  • Diversification

Exchange-Traded Funds have moderate diversity. As most ETFs are passively managed, they generally invest in the best-performing companies listed on a particular stock exchange. ETF organizations often overlook small-scale companies with huge potential.

India's Top Index ETFs to Invest in for 2022

S.No.

ETF Name

Total AUM

1.      

Motilal Oswal NASDAQ 100 ETF

Rs. 31,048 Cr

2.      

HDFC Sensex ETF

Rs. 4,39,939.45 Cr

3.      

SBI ETF Sensex

Rs. 6,43,285.27 Cr

4.      

Edelweiss ETF - NQ30

Rs. 78,127.92 Cr

5.      

UTI Sensex ETF

Rs. 2,23,499.21 Cr

1) Motilal Oswal NASDAQ 100 ETF

The Scheme seeks an investment return that corresponds to the performance of the NASDAQ 100 Index, subject to tracking errors. This ETF is the best ETF to invest in India.

2) HDFC Sensex ETF

The scheme seeks to provide investment returns that, before expenses, closely correspond to the total returns of the Securities as represented by the S&P BSE SENSEX Index subject to tracking errors. This is also considered another best ETF to buy in India.

3) SBI ETF Sensex

The scheme seeks to provide returns closely corresponding to the total returns of the securities as represented by BSE Sensex by holding BSE Sensex stocks in the same proportion. This is a top ETF in India.

4) Edelweiss ETF - NQ30

The scheme seeks to provide returns before expenses that closely correspond to the total returns of the Nifty 100 Quality 30 Index subject to tracking errors.

5) UTI Sensex ETF

The scheme seeks to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error.

India's Top Gold ETFs to Invest in for 2022

S.No.

ETF Name

Total AUM

1.      

IDBI Gold ETF

Rs. 4,192.92 Cr

2.      

Invesco India Gold ETF

Rs. 44,138.01 Cr

3.      

Aditya Birla Sun Life Gold ETF

Rs. 2,97,412.07 Cr

4.      

SBI ETF Gold

Rs. 6,43,285.27 Cr

5.      

HDFC Gold ETF

Rs. 4,39,939.45 Cr

1) IDBI Gold ETF

This is one of the best ETF in India 2022. The fund aims to provide returns that closely correspond to the return provided by the price of gold through investment in physical gold in the domestic market.

2) Invesco India Gold ETF

The fund aims to provide returns that closely correspond to the return provided by the price of gold through investment in physical gold.

3) Aditya Birla Sun Life Gold ETF

It is one of the most popular ETF funds India. The fund aims to provide returns that closely correspond to the return provided by the price of gold through investment in physical gold.

4) SBI ETF Gold - NQ30

The scheme seeks to generate returns that correspond to the returns provided by the price of gold through investment in physical Gold.

5) HDFC Gold ETF

The scheme seeks to generate returns that are in line with the performance of gold, subject to tracking errors.

India's Top Sector ETFs to Invest in for 2022

S.No.

ETF Name

Total AUM

1.      

Nippon India ETF Consumption

Rs. 2,77,915.13 Cr

2.      

Nippon India ETF Infra BeES

Rs. 2,77,915.13 Cr

3.      

Kotak NV 20 ETF

Rs. 2,85,392.44 Cr

4.      

ICICI Prudential NV20 ETF

Rs. 78, 127.92 Cr

1) Nippon India ETF Consumption

It is one of the best ETF funds in India. The scheme seeks to provide investment returns that, before expenses, closely correspond to the total returns of the securities as represented by the Nifty Consumption Index, subject to tracking errors.

2) Nippon India ETF Infra BeES

The investment objective of the scheme is to provide returns that, before expenses, closely correspond to the total returns of the Securities as represented by the Nifty Infrastructure Index by investing in the Securities in the same proportion as in the Index.

3) Kotak NV 20 ETF

It is considered to be one of the best ETFs to invest in India. The scheme seeks to provide returns before expenses that closely correspond to the total returns of stocks as represented by the NV 20 Index, subject to tracking errors.

4) ICICI Prudential NV20 ETF

The scheme seeks to provide returns before expenses that closely correspond to the total return of the underlying index subject to tracking errors. This is the best-performing ETF in India.

India's Top Bond ETFs to Invest in for 2022

S.No.

ETF Name

Total AUM

1.      

Nippon India ETF Long Term Gilt

Rs. 2,77,915.13 Cr

2.      

SBI-ETF 10Y Gilt

Rs. 6,43,285.27 Cr

3.      

LIC MF Government

Rs. 17,91366 Cr

4.      

Nippon India ETF Liquid BeEs

Rs. 2,77,915.13 Cr

1) Nippon India ETF Long Term Gilt

The scheme seeks to provide investment returns closely corresponding to the total returns of the securities as represented by the Nifty 8-13 yr G-Sec Index before expenses, subject to tracking errors and is thus, known as the best ETF in India.

2) SBI-ETF 10Y Gilt

The scheme seeks to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error.

3) LIC MF Government

The scheme seeks to generate reasonable returns with investments in government securities, securities guaranteed by the call money markets.

4) Nippon India ETF Liquid BeEs

The scheme will provide returns that before expenses, closely correspond to the returns of the Nifty 1D Rate index. There can be no assurance or guarantee that the investment objective of the Scheme will be achieved.

India's Top Currency ETFs to Invest in for 2022

S.No.

ETF Name

Total AUM

1.      

India Earnings WisdomTree Fund (EPI)

Rs. 2,77,915.13 Cr

1) India Earnings WisdomTree Fund (EPI)

India Earnings WisdomTree Fund investment determines to track the price and yield performance, before fees and expenses, of the WisdomTree India Earnings Index.

India's Top Global Index ETFs to Invest in for 2022

S.No.

ETF Name

Total AUM

1.      

Nippon ETF Hang Seng BeES

Rs. 2,77,915.13 Cr

2.      

Motilal Oswal NASDAQ 100 ETF

Rs. 31,048.98 Cr

1) Nippon ETF Hang Seng BeES

This Scheme determines to offer returns that, before expenses, closely correspond to the total returns of securities as represented by Hang Seng Index of Hang Seng Data Services Limited, by investing in the securities in the same proportion as in the Index.

2) Motilal Oswal NASDAQ 100 ETF

Motilal Oswal Nasdaq 100 ETF is an open ended scheme tracking Nasdaq 100 Index via which one can take exposure to Nasdaq 100 index stocks. It is a fund that invests primarily in shares of foreign companies.

Conclusion

This was a ranking of the top ETFs available in India in 2022. Remember that there are many factors to consider when building an effective investment portfolio.

Therefore, before selecting an ETF to invest in, make sure that you are in alignment with your current investments and that the ETF can help increase the portfolio's overall returns. Exchange-Traded funds are effective investment tools. If you use it properly, you can easily reach your financial goals.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww.

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Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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