Exchange-Traded Funds (ETFs) offer a flexible and cost-effective way to achieve diversification in your investment portfolio. They track indices and provide exposure to a broad range of assets. For Indian investors seeking diversification, here are ten of the best ETFs available in India:
Top 10 Best Indian ETFs for Diversification
1. Nifty 50 ETF (Nifty BeES)
Nifty BeES tracks the Nifty 50 Index, which represents the top 50 large-cap stocks in India. This ETF provides exposure to a broad spectrum of blue-chip companies and is ideal for investors looking for diversified equity exposure.
2. SBI Nifty Index Fund (SBI Nifty ETF)
SBI Nifty ETF is another option for tracking the Nifty 50 Index. Managed by SBI Mutual Fund, this ETF offers low expense ratios and provides a diversified portfolio of India’s top 50 companies.
3. ICICI Prudential Nifty Next 50 Index Fund (ICICI Nifty Next 50 ETF)
ICICI Nifty Next 50 ETF tracks the Nifty Next 50 Index, which includes the 50 largest stocks not in the Nifty 50 Index. This ETF provides exposure to mid-cap stocks and offers diversification beyond the largest companies.
4. HDFC Nifty 50 Index Fund (HDFC Nifty ETF)
HDFC Nifty ETF is another popular choice for tracking the Nifty 50 Index. Managed by HDFC Mutual Fund, this ETF is known for its liquidity and low tracking error, making it a reliable option for equity diversification.
5. Nippon India ETF Nifty Bank (Nippon India Nifty Bank ETF)
Nippon India Nifty Bank ETF tracks the Nifty Bank Index, which includes major banks in India. This ETF provides targeted exposure to the banking sector, offering diversification within a specific industry.
6. UTI Nifty 50 Index Fund (UTI Nifty ETF)
UTI Nifty ETF offers exposure to the Nifty 50 Index, providing investors with a diversified portfolio of India’s leading companies. Managed by UTI Mutual Fund, it is known for its strong performance and low expense ratio.
7. Kotak Nifty 50 Index Fund (Kotak Nifty ETF)
Kotak Nifty ETF tracks the Nifty 50 Index and offers investors broad market exposure. Managed by Kotak Mahindra Mutual Fund, this ETF provides a simple and efficient way to gain exposure to large-cap stocks.
8. Motilal Oswal Nifty 500 Index Fund (Motilal Oswal Nifty 500 ETF)
Motilal Oswal Nifty 500 ETF tracks the Nifty 500 Index, which represents the top 500 companies in India. This ETF offers extensive diversification across various sectors and market capitalizations.
9. Franklin Templeton Nifty 50 ETF (Franklin India Nifty 50 ETF)
Franklin India Nifty 50 ETF is designed to track the Nifty 50 Index, providing exposure to large-cap stocks. Managed by Franklin Templeton, this ETF is known for its robust tracking and liquidity.
10. ICICI Prudential Sensex ETF (ICICI Sensex ETF)
ICICI Sensex ETF tracks the Sensex Index, which represents 30 of the largest and most liquid stocks on the Bombay Stock Exchange. This ETF offers exposure to India’s top blue-chip companies and provides a diversified portfolio.
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