Highest Return ETFs in India: a comprehensive guide

GURGAON, India - Sept. 12, 2024 - PRLog -- What Are ETFs? A Quick Overview

ETFs are investment funds that pool money from investors to purchase a diversified portfolio of stocks, bonds, or other securities. In particular they aim to replicate the performance of a specific index, sector, commodity, or asset class.

Why Invest in ETFs?

• Low Cost: ETF typically have lower management fees and expenses compared to mutual funds.
• Liquidity: ETF are traded on stock exchanges, providing investors with the ability to buy or sell throughout the trading day.
• Diversification: By investing in an ETF, you get exposure to a wide range of securities, reducing risk.
• When looking for the highest return ETFs in India, it's crucial to consider both past performance and future growth potential. Here are some of the top-performing ETFs in India:
• 1) Nippon India ETF Nifty 50 (NIFTYBEES) (https://etf.nipponindiaim.com/)
  • Overview: The Nippon India ETF Nifty 50, commonly known as NIFTYBEES, is one of the oldest and most popular ETFs in India. It aims to mirror the performance of the Nifty 50 Index, which represents the top 50 companies listed on the National Stock Exchange (NSE).
  • Performance: Over the past few years, NIFTYBEES has provided substantial returns, aligning closely with the Nifty 50's performance. Given the robust performance of the Nifty 50, this ETF remains a favored choice among investors seeking high returns.
  
  2) SBI — ETF Nifty Next 50 (https://www.moneycontrol.com/mutual-funds/nav/sbi-nifty-n...)
  • Overview: This ETF aims to track the Nifty Next 50 Index, which represents the next 50 largest companies after the Nifty 50.
  • Performance: With the potential to capture growth from companies that could eventually join the Nifty 50, this ETF offers a balance of growth and moderate risk. Over the past year, it has delivered impressive returns due to the robust performance of mid-cap stocks.
  
  3) ICICI Prudential Bharat 22 ETF (https://www.moneycontrol.com/mutual-funds/nav/bharat-22-e...)
  • Overview: This ETF is part of the government's disinvestment strategy and focuses on 22 public sector companies. The Bharat 22 ETF includes companies from diverse sectors like energy, finance, and basic materials.
  • Performance: Historically, this ETF has shown solid returns, especially when public sector undertakings (PSUs) have outperformed the broader market. However, its performance can be more volatile due to its concentrated exposure to a specific sector.
  
  4) Kotak Banking ETF (https://www.moneycontrol.com/mutual-funds/nav/kotak-nifty-bank-etf/MKM903)
  • Overview: As the name suggests, the Kotak Banking ETF aims to replicate the performance of the Nifty Bank Index, which includes the most liquid and large Indian banking stocks.
  • Performance: Banking is a vital sector in India's growth story, and this ETF has consistently performed well in bullish markets. Given the cyclical nature of banking stocks, this ETF can offer high returns during periods of economic growth.