Best ETFs in India For Dec 24 Based on 5Y CAGR: CPSE ETF, Bharat 22 ETF and More

In recent years, exchange-traded funds (ETFs) have emerged as a popular investment choice among Indian investors. With the financial landscape becoming more diversified and access to global markets expanding, ETFs offer a simple, low-cost way to build a diversified portfolio. They have gained traction among both retail and institutional investors due to their ability to track various indices, sectors, and asset classes while providing liquidity and flexibility.

As passive investing continues to grow in popularity, ETFs provide a straightforward way for investors to tap into a wide range of investment opportunities with minimal effort and reduced costs compared to actively managed funds. In this blog, we will explore the best ETFs in India for Dec 2024.

What are ETFs?

An Exchange-Traded Fund (ETF) is a type of investment fund that is traded on a stock exchange, much like stocks. It consists of a collection of assets such as stocks, bonds, or commodities, and divides ownership of these assets into shares that can be bought and sold by investors on the exchange. ETFs are designed to track the performance of a particular index, sector, or commodity, providing investors with a simple way to invest in a broad market or niche segment.

For example, an ETF could track the performance of major stock indices like the Nifty 50 or the Sensex, allowing investors to gain exposure to a diversified basket of stocks. There are also ETFs for other asset classes, such as bond ETFs, commodity ETFs (like gold), and sector-specific ETFs focused on industries such as technology, healthcare, and energy.

Best ETFs For Dec 2024 – Based on 5Y CAGR

Note: The ETFs mentioned above have been selected based on 5Y CAGR as of December 5, 2024.

Overview of 5 Best ETFs in India

1. CPSE ETF

CPSE ETF stands for Central Public Sector Enterprises Exchange Traded Fund. It is a government-backed investment fund that includes shares of several central public sector enterprises. This ETF provides investors with the opportunity to invest in leading PSUs, offering both diversification and the potential for consistent returns.

Key Metrics

• 1Y Return: 31.87%
• Benchmark Index: Nifty CPSE Index

2. Nippon India ETF Nifty Midcap 150

Nippon India ETF Nifty Midcap 150 aims to deliver investment returns that closely mirror the total returns of the securities in the Nifty Midcap 150 Index, before expenses and are subject to tracking errors.

Key Metrics

• 1Y Return: 28.73%
• Benchmark Index: Nifty Midcap150 Index

3. Motilal Oswal Midcap 100 ETF

Motilal Oswal Midcap 100 ETF aims to generate investment returns that closely reflect the performance of the Nifty Midcap 100 Index (Underlying Index), before fees and expenses, and subject to tracking error.

Key Metrics

• 1Y Return: 28.43%
• Benchmark Index: Nifty Midcap 100 Index

4. Bharat 22 ETF

Bharat 22 ETF invests in the 22 companies that constitute the S&P BSE Bharat 22 Index. The fund aims to deliver returns that closely mirror the index’s total returns, after expenses, and are subject to market risk.

Key Metrics

• 1Y Return: 27.11%
• Benchmark Index: S&P BSE Bharat 22 Index

5. Motilal Oswal NASDAQ 100 ETF

Motilal Oswal NASDAQ 100 ETF is designed for investors seeking exposure to the 100 largest non-financial companies listed on the Nasdaq Stock Market. The index is heavily weighted toward leading technology stocks.

Key Metrics

• 1Y Return: 25.39%
• Benchmark Index: Nasdaq 100 Index

Conclusion

Investing in ETFs in India presents a unique opportunity for both novice and seasoned investors to grow their wealth in a diversified, low-cost, and efficient manner. As the investment landscape continues to evolve, ETFs offer a flexible and accessible option for individuals who want exposure to broad market indices, sectors, or asset classes without having to engage in individual stock picking or active management.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.