List of Best Index ETFs in India

When investing in individual stocks, an individual faces high concentration risk. This means that the financial security of the individual depends solely on the success of the single business. If the specific business faces hard times, the whole investment of the individual is threatened.

To counter this, an ETF (Exchange Traded Fund) provides a safer and easier way to invest by allowing immediate diversification. Instead of trying to pick the winning horse by picking one stock, an ETF helps you purchase a whole lot of some of the best companies in the market with a single investment. This will help diversify the risk and make sure that the value of your wealth rises with the rising economy and not fall with the falling prospects of the failed entity.

With a diversified list of top-performing investments, an ETF helps to diversify your investment portfolio. It gives you the opportunity to experience the success of the markets while also serving to shield your investment from the volatility of the stock markets.

Overview of Index ETFs in India

An ETF (Exchange Traded Fund) is a collective investment that pools money from various investors to purchase a diversified portfolio of assets, such as stocks, bonds, or commodities. As you put your money in the Nifty 50 ETF, the fund manager invests that amount into all 50 stocks that make up the Nifty 50 index in the same ratio as the Nifty 50 index.

The funds merely replicate a list referred to as an “Index”. For instance, the Nifty 50 Index comprises a list of the 50 biggest companies in India. The ETF manager does not use their own brain to pick stocks, instead they just copy this list. If Reliance Industries is 10% of the list, the ETF puts 10% of your money into Reliance.

Returns Comparison of Best Index ETFs in India

Fund Name	1 Year Return	3 Year Return	5 Year Return
Nippon India ETF Nifty 50	11.52%	44.26%	88.62%
SBI Nifty 50 ETF	10.18%	48.25%	82.81%
ICICI Prudential Nifty 50 ETF	11.10%	48.29%	87.86%
HDFC Nifty 50 ETF	11.17	41.85% (since inception)	–
UTI Nifty 50 ETF	11.96%	49.04%	83.54%
Nippon India ETF Nifty Midcap 150	5.19%	85.46%	164.24%
Mirae Asset Nifty Midcap 150 ETF	8.26%	50.20% (since inception)	–
HDFC Nifty Smallcap 250 ETF	-4.49%	75.98% (since inception)	–
Nippon India ETF Nifty 100	10.77%	46.33%	85.69%
LIC Nifty 50 ETF	11.41%	48.93%	86.66%

Read Also: List of Best Commodity ETFs in India

Best Index ETFs in India

1. Nippon India ETF Nifty 50

This is the most popular ETF in India. The trading volume is massive, so you can buy and sell instantly without suffering bid-ask spread. It has an expense ratio of roughly 0.04%, making it a top choice for beginners and active investor The fund has a low tracking error of just 0.02%.

2. SBI Nifty 50 ETF 

This fund manages a huge amount of money because government bodies like the EPFO invest here. It is safe and stable compared to individual stock investing. With an expense ratio of about 0.04%, it is perfect for long-term investors who prioritize safety. The fund closely mimics its benchmark with a tracking error of only 0.02%.

3. ICICI Prudential Nifty 50 ETF 

It has the reputation of being highly efficient. ICICI has the reputation of maintaining the tracking error ratio well within limits. The cost ratio has been quite competitive, even at times touching 0.02%, thus emerging as the best choice for frugal investo The fund exhibits exceptional index alignment, reflected in a 0.02% tracking error.

4. HDFC Nifty 50 ETF 

HDFC is a trusted brand, and the ETF is very liquid and economical too. This would be a very attractive option for those who already have some investment schemes with HDFC and want to keep all the schemes under one roof. A tracking error of 0.02% underscores the fund’s high level of replication accuracy.

5. UTI Nifty 50 ETF

This is almost the largest in terms of size and it has a large asset base (AUM) because it handles massive investments from different government pension bodies. This large size gives it great stability and a very low tracking error of 0.02%. It has an expense ratio of 0.05% and is one of the highest reliable funds where you can buy it and forget it for long term investment. 

6. Nippon India ETF Nifty Midcap 150

This is a reliable option to invest in the mid cap category, with an asset base (AUM) of over 2,800 Crores. Due to its massive size investors get high liquidity making entry and exit very easy. It has an expense ratio of about 0.21% and is one of the aggressively growing mid cap funds in the market. 

7. Mirae Asset Nifty Midcap 150 ETF

This is the highly efficient midcap fund that manages a good asset base (AUM) of around 1,350 Crores with a low tracking error of 0.04%. This is one of the cost effective choices for the investors with its expense ratio of about 0.05%. This can be an ideal choice for the investors that are looking for a low expense ratio and high midcap growth potential.  

8. HDFC Nifty Smallcap 250 ETF

This is a trusted option to capture in the entire smallcap section, with an asset base (AUM) of over 1,500 Crores. This fund offers a diversified basket of around 250 high growth potential companies that are ranked between 251-500, these are the companies that are potential market leaders of the future. It has an expense ratio of about 0.25% and provides a structured low cost method to access the high risk and high return fund market.

9. Nippon India ETF Nifty 100

This fund provides investors with both stability and growth potential as you get top 50 companies and the best 50 growing companies in the market. It has a decent asset base (AUM) of around 325 Crores and acts as a single window to access the entire large cap market. This fund has an expense ratio of around 0.50% and is best suitable for investors that want to manage a single large cap fund rather than managing two separate funds. The fund demonstrates tight benchmark adherence, keeping tracking error down to 0.03%.

10. LIC Nifty 50 ETF 

This fund has a strong backing as it is backed by the most trusted insurance giant in the country, making it reliable for the investo The asset base (AUM) of this fund is around 900 Cr., this fund gives a steady and disciplined approach to track the index. It has an expense ratio of 0.06% making it a cost effective option for the investors along with the safety and history associated with the brand LIC. 

Key Indicators of Best Index ETFs in India (KPI)

Fund Name	Current Market Price(INR)	Market Capitalization (in INR Cr.)	52 Week High (INR)	52 Week Low (INR)
Nippon India ETF Nifty 50	291.15	55,784	302.25	231.30
SBI Nifty 50 ETF	274.87	2,18,200	287.33	227.33
ICICI Prudential Nifty 50 ETF	289.52	37,425	328.24	234.97
HDFC Nifty 50 ETF	287.83	5,150	301.88	240.55
UTI Nifty 50 ETF	283.18	70,245	297.48	235
Nippon India ETF Nifty Midcap 150	226.95	2,812	239.29	179
Mirae Asset Nifty Midcap 150 ETF	22.20	1,366	23.61	16
HDFC Nifty Smallcap 250 ETF	162.10	1,591	183.18	135.21
Nippon India ETF Nifty 100	277.81	327	290	230.35
LIC Nifty 50 ETF	285.99	918	295	239.65

Read Also: Best Index Funds in India

Advantages of Investing in Index ETFs

• Cost Efficiency: The actively managed funds or mutual funds charge you 1% to 2% annually as Total Expense Ratio. Index ETF funds start from 0.04% per annum. This looks like a small number, but multiply it by 20 years, and it would be some lakhs of rupees that would remain with you instead of going to the fund management company.
• High Liquidity and Real-Time Trading: You are free to buy or sell your ETF units at any time during the market hours (9:15 AM to 3:30 PM). One characteristic of mutual funds, which does not apply to ETFs, is the restriction to check the price at the end of the trading day to know the price at which you can buy or sell.
• Broad Market Diversification: The diversification reduces company specific risk. For example, if you invest in a Nifty50 ETF, you are exposed to 50 different companies with one unit. If one fails, it doesn’t wipe out your portfolio because you have 49 other companies working for you.
• Elimination of Fund Manager Bias: The fund manager cannot go wrong since they are not making human stock picking bias or decisions. Their decisions are governed by the rule of the index. You don’t have to worry since the manager might be having a bad year.

Factors Affecting the Indian Stock Market in 2026

• Foreign vs. Indian Investors : Indian markets often see FIIs selling equities to reallocate capital globally, which can pressure prices in the short term. However, steady investments from domestic investors through SIPs and institutions frequently absorb these outflows, helping markets stay stable rather than collapse.
• Corporate Report Cards (Earnings) : Stock price changes are driven by the company’s profits. A company that misses earnings estimates will typically see a drop in their share price. Investors with a long-term investment strategy tend to focus on the fundamentals of a business, therefore, they will buy shares on corrections caused by a company’s earnings miss, as these corrections are part of the cyclical nature of all industries.
• Global Connection: Global factors influence Indian markets. Rising US interest rates can pull capital toward US bonds, increasing volatility in India. Over time, stronger domestic growth, higher savings, and broader retail participation can reduce dependence on foreign flows, though short-term fluctuations remain inevitable.

Things to Consider Before Buying Index ETF in India

• Measuring the Deviation : This shows how accurately a fund tracks the index. A 10% rise in the Index means a rise of 10% in the ETF too. An ETF may rise by 9.95%, so the difference is referred to as ‘Tracking Error’. You must aim at a fund with a near zero tracking error.
• Liquidity & Trading Volume : This is the most critical aspect. You need an ETF where thousands of people trade every day. If there are fewer people exchanging it, then it may happen that when you want to sell, there is no one to buy it or have to forcefully sell it at lower prices. Always select an ETF with high volume.

• Asset Under Management (AUM) : Assets under Management is the amount of money that the fund has invested. This means that the more the fund is worth, the more it is likely trusted and stable. This is because it is able to accommodate more individuals.
• Expense Ratio Comparison : It is the cost you have to pay. It is essential to look out for the lowest expense ratio at all times. It ensures that you benefit with higher returns.

Read Also: Top Smart Beta ETFs in India

How to Invest in Index ETFs in India

You cannot invest in ETFs without opening a Demat account. This can easily be done online on Pocketful. Complete the e-KYC procedure. Your account will then be ready for trading. 

Conclusion

Investing via Index ETFs is not merely an investment decision but an investment in your future self. By making this decision, you are moving away from the “stress” of “guessing” the market and relying instead upon the growth of the best performing companies in India. This is a liberating way to build your wealth by allowing you to share the benefits of the very economy you are a part of every day, but you no longer need to be a full-time expert in order to do so.

 Remember, the art of the investment is not merely to become rich quickly but to “stay the course” and let the power of time work for you and not against you.

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