Exchange-Traded Funds (ETFs) have ensured that the Indian investment landscape is quite different from the past eras, and the investor enjoys a cheap and diversified entry across various asset classes such as equities, gold, and silver. The educative guide provides an in-depth view of Top 10 ETF Funds In India, explains what a gold ETF is, speaks about the best gold ETFs, and provides information on some specific funds like HDFC Gold ETF, Nippon Silver ETF, and Tata Gold ETF.
Understanding Exchange-Traded Funds (ETFs) and the Top 10 ETF Funds In India 2025
Introduction
What is an ETF?
How Do ETFs Work?
ETFs function by bringing money from many different investors together in order to invest in a spread of assets. Below is how they work, step by step:
Setting up the ETF: A provider selects an index or asset class they want to mirror and creates the ETF.
Security Basket: An ETF maintains a basket of securities that is consistent with the asset class or the selected index.
Shares Issued: The fund issues shares that are a proportion of the holdings within the ETF.
Trading on Exchanges: The shares are listed and traded on stock exchanges so that investors can purchase and sell them during the course of trading in the day at the market prices.
Market Pricing: The price of shares of the ETF will vary depending upon the supply and demand and the value of the underlying assets.
Dividends and Reinvestment: ETFs can distribute dividends accrued on the underlying securities, which may be reinvested by investors.
Advantages of Investing in ETFs
ETFs function by bringing money from many different investors together in order to invest in a spread of assets. Below is how they work, step by step:
Setting up the ETF: A provider selects an index or asset class they want to mirror and creates the ETF.
Security Basket: An ETF maintains a basket of securities that is consistent with the asset class or the selected index.
Shares Issued: The fund issues shares that are a proportion of the holdings within the ETF.
Trading on Exchanges: The shares are listed and traded on stock exchanges so that investors can purchase and sell them during the course of trading in the day at the market prices.
Market Pricing: The price of shares of the ETF will vary depending upon the supply and demand and the value of the underlying assets.
Dividends and Reinvestment: ETFs can distribute dividends accrued on the underlying securities, which may be reinvested by investors.
Top 10 ETF Funds In India 2025
1. CPSE ETF
Definition: CPSE ETF tracks Nifty CPSE Index comprising top public sector entities.
AUM: ₹42,632.15 Crores
Expense Ratio: 0.05%
3-Year Return: 57.17%
5-Year Return: 34.85%
Top Holdings: NTPC, Power Grid Corporation of India, Bharat Electronics, Coal India
2. Nippon India ETF Nifty 50 BeES
Description: This ETF is designed to mirror the performance of the Nifty 50 Index, covering India’s best 50 businesses.
AUM: ₹29,369.60 Crores
Expense Ratio: 0.04%
3-Year Return: 14.76%
5-Year Return: 18.43%
Top Holdings: HDFC Bank, Reliance Industries, ICICI Bank, Infosys
3. UTI Nifty Next 50 ETF
Description: Tracks the Nifty Next 50 Index, which is made up of companies 51-100 based on market capitalization.
AUM: ₹2,375 Crores
Expense Ratio: 0.00%
3-Year Return: 22.78%
5-Year Return: 23.70%
Major Holdings: Changes as per index composition
4. Bharat 22 ETF
Description: Bharat 22 ETF tracks the S&P BSE Bharat 22 Index, with diversified public sector undertakings.
AUM: ₹18,903.54 Crores
Expense Ratio: 0.05%
3-Year Return: 41.01%
5-Year Return: 28.33%
Top Holdings: L&T, ITC, Power Grid Corporation, NTPC, Axis Bank, SBI
5. SBI Nifty Next 50 ETF
Description: It’s an ETF that invests in the Nifty Next 50 Index to gain exposure to replacement large-cap stocks.
AUM: ₹2,859 Crores
Expense Ratio: 0.15%
3-Year Return: 22.73%
5-Year Return: 23.54%
Top Holdings: According to index composition
6. Motilal Oswal NASDAQ 100 ETF
Description: The ETF follows the NASDAQ-100 Index, giving exposure to the leading 100 non-financial stocks traded on the NASDAQ stock exchange.
AUM: ₹7,988.16 Crores
Expense Ratio: 0.58%
3-Year Return: 17.21%
5-Year Return: 23.46%
Top Holdings: Apple, Microsoft, Amazon, NVIDIA, Google (Alphabet)
7. ICICI Prudential Nifty 50 ETF
Overview: Tracks the Nifty 50 Index, offering investors direct exposure to India’s top 50 blue-chip companies.
AUM: ₹14,980 Crores
Expense Ratio: 0.05%
3-Year Return: 14.62%
5-Year Return: 18.39%
Key Holdings: Reliance Industries, HDFC Bank, ICICI Bank, Infosys, TCS
8. HDFC Sensex ETF
Description: This ETF tracks the S&P BSE Sensex Index, which comprises the 30 largest and most liquid Indian stocks.
AUM: ₹1,765 Crores
Expense Ratio: 0.05%
3-Year Return: 15.35%
5-Year Return: 17.87%
Major Holdings: HDFC Bank, Reliance Industries, Infosys, TCS, ICICI Bank
9. Kotak Nifty Bank ETF
Summary: Concentrates on the Nifty Bank Index consisting of India’s top banking shares.
AUM: ₹3,456 Crores
Expense Ratio: 0.19%
3-Year Return: 18.54%
5-Year Return: 16.92%
Principal Holding: HDFC Bank, ICICI Bank, SBI, Axis Bank, Kotak Mahindra Bank
10. Aditya Birla Sun Life Gold ETF
Description: This ETF follows domestic gold prices, providing an easy means of investment in gold without physically holding the metal.
AUM: ₹1,589 Crores
Expense Ratio: 0.55%
3-Year Return: 11.98%
5-Year Return: 14.35%
Major Holdings: Physical Gold (stored in secured vaults)
Conclusion
ETFs are the most ideal investment choice in terms of diversification, liquidity, and low costs. Although equity-based ETFs like the Nifty 50 and Sensex ETFs are well-liked, you may also opt for thematic funds like the Gold and NASDAQ 100 ETFs. The Indian market is full of choices through which you can choose depending on various investment goals. And Above we explain about Top 10 ETF Funds In India 2025