Top 10 ETF Funds In India for Long Term Investing

Top 10 ETF Funds in India: Your Ticket to Stock Market Success!

Hey there, future investor! If you’re looking into the world of investments and thinking about making your money work for you, exchange-traded funds (ETFs) might be the vibe you’re looking for. ETFs are kind of like the cool cousin of mutual funds—they let you dip into a pool of diversified stocks but with more flexibility and lower costs. Plus, if you’re into SIPs (systematic investment plans), you’re in for a treat. Let’s break down the Top 10 ETF funds in India that could set you up for long-term gains and stock market glory!

What Are ETFs?

ETF is like an investment fund traded on the stock market, kind of like a stock itself. They track indexes like Nifty 50 or Sensex, exposing you to multiple stocks in one go. Unlike mutual funds, ETFs are available for purchase and trading throughout the trading day. This makes them super liquid and easy to manage.

Why Choose ETFs for Long-Term Investing?

ETFs are a no-brainer if you’re looking at the stock market as a long-term play. Here’s why:

• Diversification: Spread your risk across multiple stocks and sectors.
• Low Costs: Compared to Mutual Funds, ETFs have lower expense ratios.
• Flexibility: You can trade them at any time during market hours.
• Ideal for SIPs: ETFs work well with SIP strategies for long-term wealth creation if you invest regularly.

If you want to know about Investing in Stocks in 2025, Click Here

Top 10 ETF Funds in India for Long-Term Investment

Now that we’ve told you about ETFs, here’s the list of the top 10 ETF funds in India to consider for long-term investing:

Nippon India ETF Nifty 50

Benefits of Nippon India ETF Nifty 50

• Market Exposure: A cost-effective way to invest in India’s economic growth through the stock market.
• SIP Option: You can set up a SIP (Systematic Investment Plan) to make regular investments for long-term wealth creation.
• Transparency: Since it mirrors the Nifty 50 index, you always know which stocks you’re investing in.
  

  Who Should Invest?

• Long-Term Investors: If you’re looking for long-term growth, this ETF is a great way to ride the stock market’s potential upside.
• Passive Investors: Perfect for those who prefer to track the market passively instead of actively managing their investments.
• Cost-conscious investors: With its low expense ratio, it’s ideal for those who want to minimize costs.

 

SBI ETF Nifty 50

Benefits of SBI ETF Nifty 50

• Diversification: By investing in this ETF, you gain exposure to multiple sectors like IT, banking, FMCG, energy, and more.
• Passive Investment: It is a passive investment vehicle, meaning you don’t have to actively manage it. The ETF simply mirrors the performance of the Nifty 50.
• Ideal for Long-Term Growth: Since the Nifty 50 index tends to grow over the long term, this ETF can be an excellent choice for investors with a long-term horizon.
• Transparency: The holdings and performance of the ETF are publicly available, offering full transparency.

How to Invest in SBI ETF Nifty 50?

• Demat Account: You’ll need a Demat and trading account to buy units of this ETF.
• Market Trading: Purchase the ETF directly on the NSE during trading hours.
• SIP Option: While traditional SIPs are not directly available for ETFs, you can manually invest periodically to mimic an SIP strategy.

ICICI Prudential Nifty Next 50 ETF

Why Invest in ICICI Prudential Nifty Next 50 ETF?

• Diversification: It spreads your investment across multiple sectors and companies.
• Potential for High Returns: It includes companies that have the potential to grow and move into the Nifty 50 index.
• Cost-Effective: As an ETF, it is cheaper to hold compared to actively managed funds.
• Ideal for Long-Term Investors: If you’re looking at long-term wealth creation, this ETF is a solid pick.

 

HDFC Sensex ETF

Top Reasons to Invest in HDFC Sensex ETF

• Stability and Growth: The Sensex represents established companies with proven track records, which adds a layer of stability to your portfolio.
• Low Tracking Error: HDFC AMC is known for its efficient fund management, ensuring minimal deviation from the index returns.
• Ideal for Long-Term Goals: If you’re planning for wealth creation over the long term, this ETF is a solid option as it captures the essence of India’s economic growth.
• Beginner-Friendly: It’s perfect for new investors who want simple exposure to the stock market without the hassle of selecting individual stocks.

UTI Nifty 50 ETF

• Index Tracking: The ETF tracks the Nifty 50 index, which represents the top 50 companies listed on the National Stock Exchange (NSE). These companies are leaders in their respective industries, offering diversified exposure to India’s stock market.
• Low Expense Ratio: As an ETF, it has a significantly lower expense ratio compared to actively managed mutual funds, which means more of your money works for you.
• Liquidity: Since it’s traded on the stock exchange like a regular stock, you can buy and sell the units at any time during trading hours.

Aditya Birla Sun Life Gold ETF

Who Should Invest?

• Risk-Averse Investors: Those looking to safeguard their portfolio during market volatility.
• Long-Term Investors: Individuals aiming for stability and wealth preservation over time.
• Stock Market Enthusiasts: Investors looking to diversify beyond traditional equity ETFs or mutual funds.

Kotak Nifty ETF

• Follows the Nifty 50 index at a low-cost ratio.
• A reliable choice for stock market enthusiasts.

Motilal Oswal NASDAQ 100 ETF

• The index includes leading global technology and innovation-driven companies like Apple, Microsoft, Amazon, Alphabet (Google), NVIDIA, Tesla, and others.
• It excludes financial companies, focusing primarily on technology, consumer services, and healthcare.
• The fund aims to mimic the performance of the NASDAQ-100 Index by investing in securities in the same proportion as the index.
• It provides Indian investors exposure to U.S.-based companies without the need to invest directly in the U.S. markets.

Axis Nifty 100 ETF

• Launch Date: October 18, 2019.
• Fund Type: Open-ended index fund.
• Investment Objective: To replicate the performance of the NIFTY 100 Index (Total Return Index).
• Expense Ratio: 0.21% (as of October 2024), indicating low management costs.
• AUM: Approximately ₹1,710 crore as of November 2024.

IDFC Nifty 50 ETF

• Market Representation: Offers exposure to the top 50 companies, often regarded as the backbone of India’s economy.
• Transparency: Holdings are updated frequently, providing clear visibility into investments.
• Ease of Trading: Like stocks, you can buy or sell ETF units anytime during market hours at prevailing market prices.
• Low Tracking Error: Designed to mirror the Nifty 50 Index as closely as possible.

How to Invest in ETFs?

Getting started with ETFs is easier than you think. All you need is a Demat account and some basic knowledge of the stock market. Here’s how you can do it:

• While opening a trading and demat account, choose an experienced broker.
• Choose Your ETF: Look into the top ten ETF funds available in India and select the one that best matches your goals and needs. Start a SIP: If long-term investing is your jam, set up a SIP for consistent contributions.
• Track and Hold: Keep an eye on your portfolio, but don’t panic during market dips—remember, it’s all about the long term!

SIP in ETFs: The Long-Term Wealth Formula

ETFs and SIPs together are like peanut butter and jelly—a match made in heaven. With SIPs, you can invest small amounts regularly, which helps in rupee cost averaging and building discipline. Pairing SIPs with ETFs lets you benefit from market growth over the long term while minimizing risks. Click here to unlock the secrets of stock marketing

Final Thoughts: Are ETFs Right for You?

Absolutely! Whether you’re a newbie or a seasoned investor, ETFs are a fantastic way to dip into the stock market. They’re flexible, cost-effective, and perfect for SIP enthusiasts aiming for long-term wealth creation. And with the top 10 ETF funds in India listed above, you’ve got plenty of great options to get started. So, what are you waiting for? Let’s make those long-term investment dreams come true!