Exchange Traded Funds (ETFs) have become a preferred investment choice for many Indian investors, with ETFs in India managing over ₹5 lakh crore in assets as of 2024. The SBI Nifty 50 ETF alone holds ₹1.89 lakh crore, making it the largest ETF in the country.
While most popular ETFs track the Nifty 50 or Sensex, focusing on large-cap stocks, a new option has emerged—the Nifty Total Market ETF, offering exposure to 750 stocks across large, mid, small, and micro-cap segments.
Until now, no ETF had tracked the Nifty Total Market Index, which includes 750 stocks across large-cap, mid-cap, small-cap, and micro-cap segments. This makes it one of the most diversified ETFs, covering nearly the entire listed Indian equity market.
Angel One Mutual Fund has launched the Angel One Nifty Total Market Index Fund to provide investors with access to this broad market exposure. The new fund offer opened on 10 February 2025 and will close on 21 February 2025, offering investors a chance to invest in a fully diversified index.
The most widely held ETFs in India are those that track the Nifty 50 and Sensex, which include only large-cap stocks. Some of the biggest ETFs in India by Assets Under Management (AUM) include:
These ETFs focus on the top companies in India, offering stability and lower risk, but they miss out on the growth potential of mid and small-cap stocks.
Here’s a comparison of how these ETFs have performed as of 12th February 2025:
| ETF Name | AUM (₹ Cr) | 1-Year Return | 3-Year CAGR | 5-Year CAGR | 10-Year CAGR |
| SBI Nifty 50 ETF | 1,89,650 | 7.2% | 11.1% | 14.8% | — |
| SBI BSE Sensex ETF | 1,10,721 | 7.62% | 10.72% | 14.22% | 11.5% |
| UTI Nifty 50 ETF | 57,440 | 7.2% | 11.1% | 14.8% | — |
| UTI BSE Sensex ETF | 43,451 | 7.62% | 10.72% | 14.22% | — |
| Nippon India ETF Nifty 50 BeES | 38,966 | 7.21% | 11.12% | 14.83% | 11.32% |
| Nifty Total Market Index | — | 7.41% | 13.56% | 17.49% | 12.89% |
Over the past year, the Nifty Total Market ETF delivered 7.41% returns, slightly outperforming Nifty 50 ETFs at 7.2% but trailing behind Sensex ETFs at 7.62%. While short-term movements can vary, the broader exposure of the Nifty Total Market ETF provides a more balanced performance across different market segments.
Looking at longer trends, the Nifty Total Market ETF showed a 13.56% CAGR over 3 years, outpacing all major ETFs, indicating stronger medium-term growth. Over 5 and 10 years, it continued to outperform, delivering 17.49% CAGR over five years, significantly higher than Nifty 50 and Sensex ETFs, proving its potential for long-term wealth creation.
| Type of Investor | Suitability | Why? |
| Beginner or Conservative Investor | Nifty 50 or Sensex ETFs | More stable and less risky, ideal for those new to investing |
| Long-Term Investor | Nifty Total Market ETF | Higher returns over time due to mid and small-cap exposure |
| Investor Who Prefers Diversification | Nifty Total Market ETF | Covers all market segments, reducing concentration risk |
| Risk-Averse Investor | Nifty 50 or Sensex ETFs | Large-cap stocks provide stability and steady returns |
| Aggressive Investor | Nifty Total Market ETF | Includes high-growth mid and small-cap stocks |
| Passive Investor | Nifty Total Market ETF | Offers exposure to the entire stock market with no active stock-picking |
Note: This table is for informational purposes only and is not a recommendation. Readers should decide based on their financial and risk profiles before choosing between the indices.
Investing in ETFs is all about aligning with your financial goals and risk tolerance. If you prefer stability, lower risk, and proven large-cap companies, then Nifty 50 and Sensex ETFs may be a better fit. But if you are willing to take on some additional risk for higher long-term returns, the Nifty Total Market ETF offers a more comprehensive, diversified, and growth-oriented approach.
Both options have their place in a well-balanced portfolio. The real question is—do you want to stick with the familiar giants, or are you ready to tap into the full potential of India’s growing economy?
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 14, 2025, 6:25 PM IST
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