Best ETFs in India for Smart Investing

In India, Exchange-Traded Funds (ETFs) have become one of the most efficient and transparent ways to invest. Traded on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), ETFs combine the simplicity of equity trading with the diversification benefits of mutual funds.

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Just like buying or selling shares, investors can purchase or sell ETFs through a stockbroker, with prices fluctuating throughout the trading day based on supply and demand. To invest, you need a demat account, which can be opened easily with any leading brokerage platform.

List of Best-Performing ETFs in India (as of 4 November 2025)

The following ETFs have delivered consistently strong performance across different categories — from equity and mid-cap exposure to thematic and gold-based investing.

Top Equity and Index ETFs:

• Nippon India ETF Nifty PSU Bank BeES (Nippon India MF),
• CPSE ETF (Nippon India MF),
• Bharat 22 ETF (ICICI Prudential MF),
• Motilal Oswal Nifty Midcap 100 ETF (Motilal MF),
• ICICI Pru Nifty Midcap 150 ETF (ICICI Prudential MF),
• Nippon India ETF Nifty Midcap 150 (Nippon India MF),
• Motilal Oswal Nasdaq 100 ETF – MOFN100 (Motilal MF),
• UTI Nifty Next 50 ETF (UTI MF),
• ICICI Pru Nifty Next 50 ETF (ICICI Prudential MF),
• Mirae Asset Nifty Next 50 ETF (Mirae Asset MF).

Top Gold and Thematic ETFs:

• SBI Nifty Next 50 ETF (SBI MF),
• LIC MF Gold ETF (LIC MF),
• LIC MF Nifty 100 ETF (LIC MF),
• Axis Gold ETF (Axis MF),
• ICICI Pru Gold ETF (ICICI Prudential MF),
• Aditya Birla Sun Life Gold ETF (ABSL MF),
• HDFC Gold ETF (HDFC MF),
• SBI Gold ETF (SBI MF),
• ICICI Pru Nifty Alpha Low Volatility 30 ETF (ICICI Prudential MF).

Best ETFs to Invest in 2025

1. Nippon India ETF Nifty PSU Bank BeES

Tracks the Nifty PSU Bank Index, offering exposure to India’s top public-sector banks. With a 5-year return of 44.8 %, it has been a standout performer among financial-sector ETFs.

2. CPSE ETF

Designed to mirror the Nifty CPSE Index, this fund provides exposure to India’s largest public-sector enterprises. With 5-year returns above 41 %, it continues to be a strong performer in the PSU space.

3. Motilal Oswal Nasdaq 100 ETF

Provides investors with international diversification by tracking the Nasdaq 100 Index. Despite currency risk, the fund’s 37.8 % one-year return underscores its global tech exposure advantage.

4. HDFC Gold ETF

Among the most popular gold-backed ETFs, it offers a safe-haven asset class with over 51 % one-year return in 2025, benefiting from rising gold prices and global uncertainty.

5. ICICI Pru Nifty Midcap 150 ETF

This ETF captures India’s mid-cap growth story, providing a 5-year return of 28 %. Ideal for investors seeking long-term capital appreciation beyond blue-chip stocks.

6. UTI Nifty Next 50 ETF

Offers exposure to the next generation of large-cap companies likely to enter the Nifty 50. Its consistent 5-year return around 21 % makes it suitable for steady, long-term growth.

7. Axis Gold ETF

An efficient tool for portfolio diversification, tracking domestic gold prices. It has delivered over 51 % one-year and 32 % three-year returns, reflecting robust demand for safe assets.

How to Select the Right ETF

When evaluating ETFs, consider the following factors:

Underlying Index: Choose an ETF that mirrors your target market or sector exposure — for example, Nifty 50, Nifty Next 50, or thematic indices like PSU Bank or Gold.

Total Expense Ratio (TER): A lower TER directly enhances net returns. Compare TERs across ETFs tracking the same benchmark.

Tracking Error: Indicates how closely the ETF follows its benchmark. A smaller tracking error reflects higher efficiency.

Liquidity: Highly traded ETFs generally have tighter bid-ask spreads, making them easier and cheaper to buy or sell.

AUM: Larger AUM often implies greater liquidity and investor confidence.

How Much to Invest in ETFs per Month

Your monthly ETF investment should align with your financial goals and budget. Start with an affordable amount — even ₹ 1,000 per month — and scale up gradually as your income and confidence grow.

Define Goals: Whether you’re saving for retirement, a child’s education, or wealth accumulation, set clear objectives.

Budget Wisely: Allocate 10–20 % of disposable income to investments.

Start Small: Begin with manageable sums to build consistency and discipline.

Increase Gradually: As financial awareness and comfort grow, step up your SIP amount.

Regular ETF investing allows you to benefit from rupee-cost averaging and long-term compounding, helping to build wealth while mitigating short-term volatility.

Conclusion

ETFs have emerged as one of the smartest, most cost-efficient investment avenues in India. The Nippon India ETF Nifty PSU Bank BeES and CPSE ETF lead in PSU exposure, while the Motilal Oswal Nasdaq 100 ETF offers international diversification. Gold ETFs like HDFC Gold ETF and Axis Gold ETF remain preferred safe-haven options.

By blending domestic index exposure with thematic and gold ETFs, investors can build a balanced, diversified, and low-cost portfolio that thrives across market cycles.