Top Performing ETFs in India for 2024: What to Look for in 2025

Top Performing ETFs in India for 2024: What to Look for in 2025

Introduction

Exchange-Traded Funds (ETFs) have become an investment plaything. ETFs provide high returns, diversification, and simplicity for people of all ages. In this blog, we’ll look at the top-performing ETFs in India for 2024 and share what to look for in 2025 to maximize your returns.

What is ETF?

Top Performing ETFs in India for 2024: What to Look for in 2025

For 2024, exchange traded funds (ETFs) are a popular option to invest in. Exchange traded funds (ETFs) pay a higher interest than fixed income (equities). Among these funds, ICICI Prudential Securities Company (PIC) is going to seek an insurance plan backed by exchange traded funds (ETFs). Unlike mutual funds, ETFs trade on stock exchanges, and provides intraday trading. One easy way to buy stocks in a wide variety of different markets is by comparing ETFs to ESMs, which help you build your portfolio without having to go through many options to purchase each type of asset.

Why are ETFs popular in India?

The increasing popularity of ETFs in India can be linked to several important factors:

  • Cost-Effectiveness:
    ETFs generally have lower expense ratios compared to mutual funds.
  • Transparency:
    Investors have the ability to see the exact holdings of an ETF at any time.
  • Liquidity:
    ETFs can be bought or sold on stock exchanges throughout trading hours.
  • Diverse Choices:
    There are various options available, including equity, debt, gold, and international markets.

As a result, more investors are turning to ETFs as a trustworthy tool for achieving their financial goals, making the conversation about the top-performing ETFs in India for 2024 particularly significant.

How to buy ETFs in India

Investing in ETFs is quite simple, even for those who are new to it. Here’s a step-by-step guide:

  • Open a Demat and Trading Account:
    These accounts are essential for buying and holding ETFs. Many brokers and financial institutions in India offer a hassle-free account setup.
  • Research ETFs:
    Identify which ETFs align with your investment strategy, whether they are equity-based, sector-specific, or gold ETFs.
  • Select the Right ETF:
    Consider important factors like the underlying index, expense ratio, and liquidity.
  • Place Your Order:
    Use your trading platform to purchase ETFs during market hours, similar to buying stocks.
  • Track and Rebalance:
    Keep an eye on your ETF portfolio regularly and make adjustments as necessary.

Knowing how to purchase ETFs in India is the initial step to harnessing the benefits of these investment tools.

Top performing ETFs in India for 2024

Here’s a detailed look at the top-performing ETFs in India for 2024, which have delivered stellar returns across categories:

  • Nifty 50 ETFs These ETFs track the Nifty 50 index, providing investors with access to India’s leading companies. They are perfect for long-term investors seeking steady growth. Examples include SBI ETF Nifty 50 and UTI Nifty 50 ETF.
  • Gold ETFs Took advantage of global economic uncertainty and increasing gold prices. Serves as a safeguard against inflation and changes in currency value. Examples include HDFC Gold ETF and Kotak Gold ETF.
  • Sectoral and Thematic ETFs Concentrates on rapidly expanding sectors such as IT and banking, as well as emerging themes like ESG (Environmental, Social, and Governance). Examples include the ICICI Prudential IT ETF and the Mirae Asset NYSE FANG+ ETF.
  • International ETFs Provides access to international markets, enabling diversification beyond India. Examples: Motilal Oswal Nasdaq 100 ETF, Edelweiss MSCI World Index ETF.
  • Debt ETFs
  • Safer, low-risk investment options include government or corporate bonds. Examples: Bharat Bond ETF series (2025, 2030). Investing in the best-performing ETFs in India for 2024 allows you to engage with high-performing sectors while also diversifying your portfolio.

How to Invest in ETFs in India

Knowing how to invest in ETFs in India is crucial for maximizing returns:

  • Learn About Different ETF Types:
    Pick from equity, debt, gold, or thematic ETFs that suit your risk profile and investment goals.
  • Examine Key Metrics:
    Review the ETF’s expense ratio, tracking error, and past performance.
  • Diversify Your Portfolio:
    Steer clear of putting too much focus on a single sector or asset class.
  • Investing through SIPs:
    Investing through Systematic Investment Plans (SIPs)in ETFs allows you to make consistent investments over time.
  • Keep an Eye on the Market:
    Regularly check on market trends and make adjustments to your investments as needed.

Following these steps ensures that you leverage the benefits of the top-performing ETFs in India for 2024 effectively.

What to Look for in ETFs in 2025

As the ETF market evolves, here are key trends and factors to consider for 2025:

  • Emerging Themes:
    Consider ETFs that target innovative sectors such as renewable energy, electric vehicles, and artificial intelligence.
  • Passive Investing Growth:
    Anticipate an increase in passive investment choices, such as index ETFs.
  • Global exposure:
    International ETFs are likely to become more popular as investors seek to diversify their portfolios across different regions.
  • Regulatory Advancements:
    Anticipate changes in regulations to protect investors and enhance ETF transparency.
  • SIP Popularity:
    SIPs in ETFs could emerge as a preferred strategy for retail investors.

Understanding what to look for in ETFs in 2025 will help you stay ahead of the curve and capitalize on new opportunities.

Why Invest in Top-Performing ETFs in India for 2024?

Investing in ETFs offers numerous benefits:

  • Cost-Effective Wealth Creation:
    Lower expense ratios help you keep more of your returns.
  • Risk Mitigation:
    Diversifying your investments lessens the effects of volatility from individual stocks.
  • Ease of Access:
    ETFs are simple to buy, sell, and hold, making them beginner-friendly.
  • Transparent Holdings:
    You can see exactly how your money is allocated.
  • Flexibility:
    You can trade ETFs at any time during market hours.

FAQs on ETFs

What are the best ETFs to invest in India for 2024?

Some of the best ETFs include SBI ETF Nifty 50, Kotak Gold ETF, and Bharat Bond ETFs.

Open a Demat account, choose your preferred ETF, and place your order through a trading platform.

ETFs are cost-effective, diversified, and transparent, making them an excellent choice for all types of investors.

Yes, they provide exposure to global markets and help diversify your portfolio.

Conclusion

The leading ETFs in India for 2024 have established a standard for what investors can anticipate in the upcoming year. With advancements such as thematic ETFs, global exposure, and the increasing popularity of SIPs, 2025 presents significant opportunities for ETF investors. Whether you’re just starting out or have years of experience, staying updated and making informed choices will assist you in reaching your financial objectives.

Begin your ETF journey now and seize the thrilling opportunities that await.

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