Best ETFs in India For Feb 25 Based on 5Y CAGR: CPSE ETF, Bharat 22 ETF and More

In recent years, exchange-traded funds (ETFs) have gained significant popularity among Indian investors. With a more dynamic financial landscape and increased access to international markets, ETFs provide an affordable and straightforward way to build a diversified portfolio. They are favoured by both retail and institutional investors for their ability to track a variety of indices and asset classes, offering flexibility and liquidity.

As passive investing continues to rise in popularity, ETFs offer an efficient way to tap into a broad range of investment opportunities with lower costs and minimal effort compared to actively managed funds. In this blog, we’ll dive into the top-performing ETFs for February 2025.

What are ETFs?

An Exchange-Traded Fund (ETF) is a type of investment fund that can be bought and sold on a stock exchange, much like individual stocks. It usually consists of a mix of assets, including stocks, bonds, or commodities, and splits these holdings into shares that are available to investors. Designed to mirror the performance of a specific index, sector, or commodity, ETFs provide an easy way for investors to gain exposure to diverse markets or focus on particular areas of interest.

Best ETFs For Feb 2025 – Based on 5Y CAGR

Note: The ETFs mentioned above have been selected based on 5Y CAGR as of January 28, 2025.

Overview of Best ETFs in India

CPSE ETF

The CPSE ETF (Central Public Sector Enterprises Exchange Traded Fund) is a government-backed fund that holds shares of several central public sector enterprises. This ETF allows investors to invest in leading PSUs, providing a mix of diversification and the potential for consistent returns..

Key Metrics

• 1Y Return: 9.98%
• Benchmark Index: Nifty CPSE Index

Motilal Oswal NASDAQ 100 ETF

Motilal Oswal NASDAQ 100 ETF seeks investment return that corresponds (before fees and expenses) generally to the performance of the NASDAQ-100 Index, subject to tracking error. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved

Key Metrics

• 1Y Return: 48.10%
• Benchmark Index: Nifty 50 TRI

Bharat 22 ETF

The Bharat 22 ETF invests in the 22 companies that make up the S&P BSE Bharat 22 Index. The fund aims to deliver returns that closely mirror the total returns of the index, after expenses, and is exposed to market risks.

Key Metrics

• 1Y Return: 5.08%
• Benchmark Index: S&P BSE Bharat 22 Index

Nippon India ETF Junior BeES

Nippon India ETF Junior BeES seeks to provide returns that, before expenses, closely correspond to the returns of Securities as represented by Nifty Next 50 Index. There can be no assurance or guarantee that the investment objective of the Scheme will be achieved

Key Metrics

• 1Y Return: 11.06%
• Benchmark Index: Nifty Next 50 Index

ICICI Prudential Nifty 50 ETF

ICICI Prudential Nifty 50 ETF aims to provide returns before expenses that closely correspond to the total return of the Underlying Index, subject to tracking errors.

Key Metrics

• 1Y Return: 6.45%
• Benchmark Index: CNX NIFTY

Best ETFs For Feb 2025 – Based on Tracking Error

Conclusion

As the investment environment continues to change, ETFs provide a flexible and easy-to-use tool for those seeking exposure to broad market indices, specific sectors, or asset classes—without the need for individual stock picking or active management.

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. 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.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.