Exchange Traded Funds (ETFs) are becoming more popular in India day by day. They are simple, low-cost, and a smart way to invest in the stock market without picking individual shares. Whether you are a new investor or someone with experience, ETFs can help you grow your money with less risk. In this article, we will talk about the best ETFs in India and explain why adding them to your portfolio can be a good decision for long-term wealth creation.
What is an ETF?
ETF means Exchange Traded Fund. It is a type of investment that works like a mutual fund but trades like a stock in the share market. An ETF holds a collection of assets, like shares, bonds, gold, or an index (like Nifty 50 or Sensex). When you invest in an ETF, you are not buying one single company’s share — you are buying a group of them together.
ETFs are listed on the stock exchange, so you can buy or sell them anytime during market hours, just like normal stocks. They are low-cost, easy to invest in, and give good diversification — that means your money is not dependent on one stock only, which reduces risk.
Best ETF In India
| ETF Name | AUM (₹ Cr) | NAV (₹) | Minimum SIP (₹) |
|---|---|---|---|
| Mirae Asset S&P 500 Top 50 ETF FoF | 668.66 | 19.25 | 0 |
| Invesco India – Invesco EQQQ NASDAQ-100 ETF FoF | 397.85 | 16.25 | 0 |
| Mirae Asset Global X Artificial Intelligence & Technology ETF FoF | 327.87 | 19.53 | 0 |
| BHARAT Bond ETF FOF – April 2032 | 4444.74 | 12.32 | 100 |
| HDFC Gold ETF FoF | 3059.77 | 27.70 | 100 |
| BHARAT Bond ETF FOF – April 2033 | 2297.10 | 12.03 | 100 |
| ICICI Pru Nifty 100 Low Volatility 30 ETF FOF | 1338.40 | 17.21 | 100 |
| ICICI Pru Silver ETF FOF | 1032.34 | 15.32 | 100 |
| ICICI Pru Nifty Alpha Low – Volatility 30 ETF FOF | 814.19 | 14.11 | 100 |
| Nippon India Silver ETF FOF | 563.74 | 15.25 | 100 |
1. Mirae Asset S&P 500 Top 50 ETF FoF
Mirae Asset S&P 500 Top 50 ETF FoF Direct-Growth is an international FoF mutual fund scheme from Mirae Asset Mutual Fund. It was launched on 30/04/2020, so it has been active for over 5 years.
This FoF invests in the S&P 500 Top 50 Index via ETFs and is classified under FoFs (Overseas) – Equity Oriented. It manages assets worth ₹669 crore. The CAGR return over the past 5 years is around 12.15%. The fund has no exit load and an expense ratio of 0.49%.
Asset composition: 100% Equity exposure (via ETFs). Risk level: Very High, as per SEBI.
2. Invesco India – Invesco EQQQ NASDAQ-100 ETF FoF
Invesco India – Invesco EQQQ NASDAQ-100 ETF FoF Direct-Growth is an overseas equity FoF that invests in the NASDAQ-100 Index via the Invesco EQQQ ETF. It was launched on 09/03/2021, and has completed over 4 years.
It manages assets of ₹398 crore, has no minimum SIP, and is ideal for investors looking to diversify internationally. CAGR since inception is 13.1%. The fund has no exit load and an expense ratio of 0.52%. Asset mix: 100% equity (global exposure). SEBI risk category: Very High.
3. Mirae Asset Global X Artificial Intelligence & Technology ETF FoF
This ETF FoF was launched on 10/01/2022 by Mirae Asset Mutual Fund. It invests in the Global X Artificial Intelligence & Technology ETF, giving exposure to AI and tech stocks worldwide.
AUM is around ₹328 crore, with no SIP minimum. CAGR is ~11.2% since inception. Expense ratio is 0.49%, and there is no exit load.
This is an FoF (Overseas – Thematic) fund, risk level: Very High. Asset allocation: 100% international equity.
4. BHARAT Bond ETF FOF – April 2032
BHARAT Bond ETF FOF – April 2032 Direct-Growth is a Target Maturity mutual fund from Edelweiss Mutual Fund, launched on 03/12/2021, now over 3 years old.
It is a FoFs (Domestic) – Debt Oriented fund, managing ₹4,445 crore. Over the past 3 years, CAGR is 6.94%. It has an exit load of 0.1% and a very low expense ratio of 0.06%.
Asset mix: No Equity, 96.8% Debt, 3.2% Cash. SEBI risk level: Moderate.
5. HDFC Gold ETF FoF
HDFC Gold ETF FoF Direct-Growth is a Gold FoF mutual fund from HDFC Mutual Fund, launched on 01/11/2011, making it over 13 years old.
It invests in HDFC Gold ETF, offering returns that mirror domestic gold prices. AUM is ₹3,060 crore, CAGR over 5 years is around 11.4%, with an expense ratio of 0.50%, and no exit load.
Asset allocation: 100% Gold ETF. Risk level: Moderately High.
6. BHARAT Bond ETF FOF – April 2033
Another Target Maturity Debt FoF from Edelweiss, this one launched on 20/06/2022. It is over 2 years old and matures in 2033.
AUM is ₹2,297 crore, CAGR of 6.85% since launch, with an exit load of 0.1% and low expense ratio of 0.06%.
Asset mix: 97.1% Debt, 2.9% Cash, no equity. Risk level: Moderate.
7. ICICI Pru Nifty 100 Low Volatility 30 ETF FOF
Launched on 10/11/2021 by ICICI Prudential Mutual Fund, this is a domestic equity FoF that tracks the Nifty 100 Low Volatility 30 Index.
AUM is ₹1,338 crore, CAGR around 12.9%, expense ratio 0.30%, and no exit load. SIP starts at ₹100.
Asset mix: 100% equity, risk level: Very High.
8. ICICI Pru Silver ETF FOF
This fund was launched on 28/01/2022 by ICICI Prudential. It invests in silver through ICICI Silver ETF.
AUM is ₹1,032 crore, CAGR ~9.7%, expense ratio 0.40%, no exit load.
Asset allocation: 100% Silver ETF. Risk level: Moderately High.
9. ICICI Pru Nifty Alpha Low – Volatility 30 ETF FOF
Launched on 30/11/2022, this ICICI fund tracks the Nifty Alpha Low Vol 30 Index, blending alpha stocks with stability.
AUM: ₹814 crore, expense ratio: 0.29%, no exit load, SIP from ₹100.
Asset mix: 100% equity, risk level: Very High.
10. Nippon India Silver ETF FOF
This fund from Nippon India was launched on 13/09/2022, and it invests in Nippon Silver ETF, tracking silver prices.
AUM: ₹564 crore, CAGR of ~8.9%, expense ratio: 0.44%, no exit load, SIP from ₹100.
Asset allocation: 100% Silver ETF. Risk category: Moderately High.
📌 Features of the Best ETFs in India
The best ETFs in India come with many useful features that make them a smart choice for investors. One of the biggest advantages is low cost – ETFs have a very low expense ratio compared to regular mutual funds, which helps in getting better returns over the long term. They also offer high liquidity, which means you can buy or sell them anytime during the stock market hours, just like shares. Another great feature is transparency – you can easily check which stocks or assets the ETF is holding because the list is updated daily.
Diversification is also a major benefit. One ETF can give you exposure to many companies or even a full index like Nifty or Sensex, which helps reduce risk. Lastly, ETFs offer flexibility. You can use different trading options like stop-loss, limit orders, or even short selling. These features make ETFs a flexible, transparent, and cost-effective way to invest in the Indian stock market.
Best ETFs in India Based on 3-Year CAGR (Highest to Lowest)
If you are looking for the top-performing ETFs in India based on 3-year Compound Annual Growth Rate (CAGR), the table below highlights the best options. These ETFs have delivered solid returns over the past 3 years and are suitable for both beginners and experienced investors.
| TF Name | 3-Year CAGR (%) | Minimum SIP (₹) |
|---|---|---|
| Mirae Asset S&P 500 Top 50 ETF FoF | 21.90% | 0 |
| HDFC Gold ETF FoF | 17.97% | 100 |
| ICICI Pru Nifty Alpha Low – Volatility 30 ETF FOF | 15.31% | 100 |
| ICICI Pru Nifty 100 Low Volatility 30 ETF FOF | 15.27% | 100 |
| ICICI Pru Silver ETF FOF | 11.30% | 100 |
| Nippon India Silver ETF FOF | 11.08% | 100 |
| BHARAT Bond ETF FOF – April 2032 | 6.94% | 100 |
📊 Impact of Market Trends on ETFs in India
Market trends play a major role in shaping the performance of ETFs in India because these funds closely follow specific indices, commodities, or sectors. When the overall market is doing well — such as during a bull run — equity ETFs like those tracking the Nifty 50 or Sensex usually deliver strong returns. On the other hand, during times of economic uncertainty, investors often move their money to safer options like gold ETFs or target maturity debt ETFs, which are seen as more stable.
Events such as interest rate changes by RBI, inflation, global market movements, geopolitical tensions, or even Union Budget announcements can cause sharp movements in ETF prices. Sector-specific ETFs, like those focusing on banking, technology, or international markets, are also affected by news or earnings from companies in those sectors. In short, the type of ETF you invest in should match your risk level and market outlook, as different ETFs react differently to market trends.
👥 Who Should Invest in the Best ETFs in India?
ETFs are good for many types of investors in India. If you are a beginner and want simple entry into the stock market, ETFs are a smart choice. They are also perfect for people who want to invest and hold for long-term without checking daily. Since ETFs have low fees, they are great for cost-conscious investors too. Even traders can use them for intraday buying and selling. If you want to invest in a specific sector like gold, silver, or technology, ETFs can give you that exposure easily. Just make sure you know your goal, risk level, and how long you want to stay invested.
Conclusion
ETFs in India are becoming a popular and smart investment option for both new and experienced investors. They offer low costs, good returns, and easy access to different markets like equity, gold, silver, and even global indexes. Whether you want stable growth, diversification, or flexibility in trading, there is an ETF that suits your goal. But before investing, always check your financial plan, how much risk you can take, and your investment period. With the right approach, the best ETFs in India can help you build long-term wealth with less effort and more peace of mind.