Best Nifty 50 ETFs in India by Returns

Exchange-Traded Funds (ETFs) tracking the Nifty 50 index have gained popularity among Indian investors seeking low-cost exposure to the stock market. These funds mirror the performance of the Nifty 50—India’s benchmark index comprising the top 50 listed companies across various sectors.

Nifty 50 ETFs offer a simple and efficient way to participate in the long-term growth of India’s largest and most stable companies. They are ideal for investors who prefer diversification, transparency, and passive investing.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

In this article, we highlight the best-performing Nifty 50 ETFs in India based on returns. Whether you're building a long-term portfolio or looking to balance your equity exposure, these ETFs can be an excellent addition to your investment strategy.

Aditya Birla Sun Life Nifty 50 ETF (BSLNIFTY)

BSLNIFTY is a passively managed exchange-traded fund that aims to closely replicate the Nifty 50 Index. It invests almost entirely in large-cap equities, offering broad exposure to India's top 50 listed companies across sectors like finance, IT, energy, and auto. Known for its ultra-low expense ratio and minimal tracking error, it provides cost-effective access to the equity market. The ETF is popular among investors for its consistency, diversification, and ability to mirror the market’s performance, making it ideal for long-term and passive investment portfolios.

Motilal Oswal Nifty M50 ETF (MOM50)

The MOM50 ETF is designed to mirror the Nifty 50 Index by investing in large-cap companies with high market capitalisation. It offers a very low-cost structure and one of the lowest tracking errors among its peers, making it highly efficient in tracking the benchmark index. The fund holds stocks across sectors like financials, energy, and information technology. Its precise index replication and accessibility make it suitable for various strategies such as SIPs, lump sum investing, and long-term wealth building with minimal active management.

LIC MF Nifty 50 ETF (LICNETFN50)

LICNETFN50 is a passive investment fund that replicates the Nifty 50 Index, offering exposure to India’s leading blue-chip companies. With strong backing from LIC and a low expense ratio, it provides a cost-effective option for investors seeking index-level returns. The fund's portfolio covers a range of sectors, including finance, IT, and energy, and features high-quality, large-cap stocks. It is considered a reliable choice for conservative and long-term investors seeking stable returns through a trusted brand.

Tata Nifty 50 ETF (NETF)

Offered by Tata Mutual Fund, NETF seeks to replicate the Nifty 50 Index by investing in its constituent large-cap stocks. It offers a balance of low cost, reasonable tracking accuracy, and exposure to key sectors like financial services, technology, and energy. With a straightforward structure and a reputable sponsor, NETF is appealing to investors who prefer a known brand and a simple, passive strategy for participating in India’s stock market. It's appropriate for beginners and experienced investors alike.

Invesco India Nifty 50 ETF (IVZINNIFTY)

IVZINNIFTY is a passively managed ETF that provides exposure to the Nifty 50 Index by investing in top Indian large-cap stocks. The fund focuses on efficient index tracking with a low expense ratio and minimal tracking error. It spans various key sectors, including financials, IT, and energy, and includes well-established companies in its portfolio. Despite having a smaller fund size, it remains competitive due to its cost efficiency and precision. It is suited for investors seeking reliable, long-term market exposure through a passive investment vehicle.

Conclusion

Nifty 50 ETFs are a smart choice for investors seeking long-term market growth with minimal cost and risk. These funds track India’s benchmark index and offer exposure to the country’s top companies across key sectors like finance, IT, energy, and auto.

With low expense ratios, high liquidity, and consistent returns, ETFs like those from Aditya Birla, Motilal Oswal, LIC, Tata, and Invesco provide simple and efficient investment solutions. They are ideal for both beginners and seasoned investors aiming for passive wealth creation.

By comparing performance, AUM, tracking error, and cost, investors can select an ETF that fits their financial goals. With the right pick and discipline, Nifty 50 ETFs can be a powerful addition to any portfolio.