Exchange-Traded Funds (ETFs) have gained significant traction among Indian investors looking for diversified exposure to equities, commodities, and bonds with lower costs. With the stock market evolving rapidly, selecting the right ETF can maximize returns while mitigating risks. In this blog, we explore the Top 10 ETFs in India in 2025, their advantages, and why they should be on your investment radar.
ETFs are investment funds that trade on stock exchanges like individual stocks. They offer: ✅ Diversification – Exposure to a basket of securities. ✅ Cost-Effectiveness – Lower expense ratios compared to mutual funds. ✅ Liquidity – Can be bought and sold throughout the trading day. ✅ Transparency – Holdings are disclosed daily.
💡 “ETFs provide a balanced approach for risk-averse and growth-oriented investors alike.”
📊 Top 10 ETFs in India in 2025
Here’s a comprehensive list of the best-performing and most promising ETFs to consider in 2025:
1️⃣ Nippon India ETF Nifty 50 BeES
- Category: Equity ETF (Nifty 50)
- Expense Ratio: ~0.05%
- Why Invest? One of the most liquid and oldest ETFs tracking the Nifty 50 index.
2️⃣ ICICI Prudential Nifty ETF
- Category: Equity ETF (Nifty 50)
- Expense Ratio: ~0.04%
- Why Invest? Strong performance, low tracking error, and backed by ICICI’s expertise.
3️⃣ SBI ETF Nifty 50
- Category: Large Cap Equity ETF
- Expense Ratio: ~0.07%
- Why Invest? Ideal for long-term investors looking for index-based investing.
4️⃣ HDFC Sensex ETF
- Category: Equity ETF (Sensex)
- Expense Ratio: ~0.10%
- Why Invest? Provides exposure to India’s top 30 companies based on market capitalization.
5️⃣ UTI Gold ETF
- Category: Commodity ETF (Gold)
- Expense Ratio: ~0.65%
- Why Invest? A great way to hedge against inflation and diversify a portfolio with gold.
6️⃣ Motilal Oswal NASDAQ 100 ETF
- Category: International Equity ETF
- Expense Ratio: ~0.55%
- Why Invest? Provides exposure to global tech giants like Apple, Google, and Amazon.
7️⃣ Edelweiss MSCI India Domestic ETF
- Category: Thematic Equity ETF
- Expense Ratio: ~0.50%
- Why Invest? Focuses on India’s growth story with exposure to high-growth domestic companies.
8️⃣ Kotak Banking ETF
- Category: Sectoral ETF (Banking)
- Expense Ratio: ~0.20%
- Why Invest? Ideal for investors bullish on the banking sector’s future.
9️⃣ Axis Healthcare ETF
- Category: Sectoral ETF (Healthcare)
- Expense Ratio: ~0.45%
- Why Invest? Capitalizes on the rapidly expanding Indian pharmaceutical and healthcare industry.
🔟 Aditya Birla Sun Life Silver ETF
- Category: Commodity ETF (Silver)
- Expense Ratio: ~0.75%
- Why Invest? Offers exposure to silver as an alternative asset class with strong industrial demand.
📈 Performance Comparison
| ETF Name | Category | Expense Ratio | Key Benefit |
|---|---|---|---|
| Nippon India ETF Nifty 50 BeES | Nifty 50 | 0.05% | High liquidity & low cost |
| ICICI Prudential Nifty ETF | Nifty 50 | 0.04% | Low tracking error |
| SBI ETF Nifty 50 | Nifty 50 | 0.07% | Strong index representation |
| HDFC Sensex ETF | Sensex | 0.10% | Stable blue-chip exposure |
| UTI Gold ETF | Gold | 0.65% | Inflation hedge |
| Motilal Oswal NASDAQ 100 ETF | Global Equity | 0.55% | Exposure to US tech giants |
| Edelweiss MSCI India Domestic ETF | Thematic Equity | 0.50% | Growth-oriented |
| Kotak Banking ETF | Banking | 0.20% | Focused on financial sector |
| Axis Healthcare ETF | Healthcare | 0.45% | Pharma & healthcare focus |
| Aditya Birla Sun Life Silver ETF | Silver | 0.75% | Industrial demand potential |
Before investing, consider:
✔ Investment Goal: Long-term wealth creation vs. short-term trading.
✔ Expense Ratio: Lower costs mean higher net returns.
✔ Liquidity: Higher trading volumes ensure smooth entry/exit.
✔ Sector Exposure: Choose ETFs that align with your market outlook.
✔ Historical Performance: Past performance isn’t a guarantee, but trends matter.
Investing in ETFs in India in 2025 presents numerous opportunities for portfolio diversification, cost-effective investing, and better market exposure. Whether you’re looking for equity, commodity, or sector-specific ETFs, the above list provides a solid foundation for informed decision-making.
