Top Performing ETFs to Invest in This Year: Diversify Your Portfolio
Exchange-traded funds (ETFs) are a type of investment fund that can be traded on stock exchanges, much like individual stocks. These funds typically hold a diversified portfolio of assets, which may include stocks, bonds, commodities like gold, or a combination of these. ETFs are designed to track the performance of a specific index, sector, commodity, or asset class. This feature makes them an attractive option for investors seeking to mirror the performance of a particular market or segment without having to buy individual securities.
Key Features of ETFs
One of the defining characteristics of ETFs is their structure, which allows investors to buy and sell shares throughout the trading day at market prices. This intraday trading capability provides significant liquidity and flexibility, enabling investors to enter and exit positions with ease. Additionally, ETFs are known for their low expense ratios compared to traditional mutual funds, making them a cost-effective investment option. This combination of liquidity, flexibility, and cost efficiency makes ETFs a popular choice among both individual and institutional investors.
Overview of the Best ETFs in India
Here is a comprehensive overview of the 15 best ETFs to invest in India, detailing their expense ratios, assets under management (AUM), market capitalization, risk levels, and trend charts.
1. Nippon India ETF Nifty 50 BeES
The Nippon India ETF Nifty 50 BeES is one of the best ETFs to invest in 2024 and among the top choices for investors looking to gain broad market exposure. It tracks the Nifty 50 index, which includes the top 50 companies listed on the National Stock Exchange (NSE). This ETF provides investors with access to a diversified portfolio of blue-chip companies across various sectors of the Indian economy.
Fund Symbol: NIFTYBEES
NAV: Rs 241.63
Expense Ratio: 0.04%
AUM: Rs 21,580 crore
Market Cap: Rs 22,606.36 crore
Volume: 20.49 lakhs
Risk: High risk
Minimum Lump Sum Investment: Rs 10,000
Returns:
1Y Return: 12.1%
3Y Return: 44.25%
5Y Return: 101.17%
2. Nippon India ETF PSU Bank BeES
Nippon India ETF PSU Bank BeES tracks the Nifty PSU Bank Index, providing exposure to stocks of public sector banks in India. This ETF can be appealing for those looking to diversify within the banking sector. However, potential investors should consider their individual investment goals and risk tolerance.
Fund Symbol: PSUBNKBEES
NAV: Rs 76.34
Expense Ratio: 0.49%
AUM: Rs 2,561 crore
Market Cap: Rs 2,640.14 crore
Volume: 42.97 lakhs
Risk: Very high risk
Minimum Lump Sum Investment: Rs 10,000
Returns:
1Y Return: 86.17%
3Y Return: 210.69%
5Y Return: 120.81%
3. ICICI Prudential Mutual Fund – BHARAT 22 ETF
The BHARAT 22 ETF is notably the best ETF to Invest in 2024 for its diversified portfolio of blue-chip stocks from key sectors of the Indian economy. It offers exposure to well-established companies with strong growth potential, combined with the benefits of diversification and liquidity typical of ETFs.
Fund Symbol: ICICIB22
NAV: Rs 96.10
Expense Ratio: 0.07%
AUM: Rs 16,624 crore
Market Cap: Rs 16,519.94 crore
Volume: 7.58 lakhs
Risk: Very high risk
Minimum Lump Sum Investment: Rs 5,000
Returns:
1Y Return: 67.72%
3Y Return: 167.61%
5Y Return: 163.31%
4. Mirae Asset NYSE FANG+ ETF
The Mirae Asset NYSE FANG+ ETF is another of the ETFs to Invest in 2024. It aims to replicate the NYSE® FANG+™ Index, which includes leading technology and tech-enabled firms such as Facebook, Apple, Amazon, Netflix, and Google. This ETF provides an opportunity for investors to benefit from the growth potential of major global tech giants.
Fund Symbol: MAFANG
NAV: Rs 83.55
Expense Ratio: 0.66%
AUM: Rs 2,046 crore
Market Cap: Rs 2,140.42 crore
Volume: 3.51 lakhs
Risk: Very high risk
Minimum Lump Sum Investment: Rs 5,000
Returns:
1Y Return: 78.87%
3Y Return: 83.87%
5Y Return: NA
5. UTI S&P BSE Sensex ETF
The UTI S&P BSE Sensex ETF mirrors the performance of the S&P BSE Sensex Index, which comprises India’s top 30 listed companies. This ETF is a convenient way for investors to gain exposure to the blue-chip segment of the Indian equity market.
Fund Symbol: UTISENSETF
NAV: Rs 784
Expense Ratio: 0.05%
AUM: Rs 36,897 crore
Market Cap: Rs 37,759 crore
Volume: 303
Risk: Very high risk
Minimum Lump Sum Investment: Rs 5,000
Returns:
1Y Return: 25.59%
3Y Return: 50.93%
5Y Return: 96.76%
6. Nippon India ETF Gold BeES
The Nippon India ETF Gold BeES (GOLDBEES) offers investors exposure to the price movements of gold without needing to own the physical metal. This ETF is backed by physical gold, making it a convenient and cost-effective way to invest in gold bullion.
Fund Symbol: GOLDBEES
NAV: Rs 55.54
Expense Ratio: 0.79%
AUM: Rs 8,929 crore
Market Cap: Rs 9,676.18 crore
Volume: 51.90 lakhs
Risk: High risk
Minimum Lump Sum Investment: Rs 10,000
Returns:
1Y Return: 12.38%
3Y Return: 44.61%
5Y Return: 101.67%
7. Nippon India Etf Nifty Bank Bees
The Nippon India ETF Nifty Bank Bees (BANKBEES) tracks the Bank Nifty index, comprising the most liquid and large-cap banking stocks listed on the NSE. This ETF provides exposure to India’s crucial banking sector, allowing investors to benefit from the performance of leading banks.
Fund Symbol: BANKBEES
NAV: Rs 471.90
Expense Ratio: 0.19%
AUM: Rs 6,120 crore
Market Cap: Rs 6,074.77 crore
Volume: 5.91 lakhs
Risk: Very high risk
Minimum Lump Sum Investment: Rs 10,000
Returns:
1Y Return: 17.94%
3Y Return: 30.97%
5Y Return: 56.87%
8. HDFC Nifty50 Value 20 ETF
The HDFC Nifty50 Value 20 ETF (HDFCVALUE) focuses on value investing by targeting stocks that are trading at a discount to their intrinsic value. This strategy aims to identify undervalued stocks with potential for long-term capital appreciation.
Fund Symbol: HDFCVALUE
NAV: Rs 123.29
Expense Ratio: 0.15%
AUM: Rs 23 crore
Market Cap: Rs 25.62 crore
Volume: 0.06 lakhs
Risk: Very high risk
Minimum Lump Sum Investment: Rs 5,000
Returns:
1Y Return: 34.58%
3Y Return: 47.00%
5Y Return: 48.08%
9. Invesco India Gold ETF
The Invesco India Gold ETF is designed to track the price of gold in India. This ETF provides a way for investors to gain exposure to gold’s performance without the need to physically own or store the metal, offering both liquidity and potential capital appreciation.
Fund Symbol: IVZINGOLD
NAV: Rs 5,852.88
Expense Ratio: 0.55%
AUM: Rs 97 crore
Market Cap: Rs 104.40 crore
Volume: 107
Risk: High risk
Minimum Lump Sum Investment: Rs 5,000
Returns:
1Y Return: 12.37%
3Y Return: 43.74%
5Y Return: 104.88%
10 . Nippon India Silver ETF
The Nippon India Silver ETF (SILVERBEES) is backed by physical silver, allowing investors to gain exposure to the price movements of silver bullion. This ETF provides a convenient way to invest in silver without needing to manage physical storage.
Fund Symbol: SILVERBEES
NAV: Rs 72.56
Expense Ratio: 0.51%
AUM: Rs 1,518 crore
Market Cap: Rs 1,621.04 crore
Volume: 74.96 lakhs
Risk: Very high risk
Minimum Lump Sum Investment: Rs 1,000
Returns:
1Y Return: 9.53%
3Y Return: N/A
5Y Return: N/A
In conclusion, ETFs offer investors a versatile and cost-effective way to gain diversified exposure to various asset classes, sectors, and markets. The 15 best ETFs in India highlighted above provide a range of options catering to different investment goals and risk appetites. Whether seeking broad market exposure, sector-specific investments, or commodity-based ETFs, investors can find suitable options to enhance their portfolios.