ETF Return Calculator

What is an ETF?

An ETF (Exchange-Traded Fund) is a type of investment fund that holds a collection of assets such as stocks, bonds, commodities, or a mix of these. ETFs are traded on stock exchanges, similar to individual stocks, making them accessible to investors throughout the trading day.

What is an ETF Calculator?

An ETF Calculator is a financial tool designed to help investors estimate the potential future value of their investments in Exchange-Traded Funds (ETFs). It considers key factors such as the investment amount, expected return rate, time horizon, and expense ratio to provide insights into how much an investment could grow over time.

Types of ETF Calculators

• ETF Return Calculator: Calculates potential returns over a specified period, considering expected annualized return rates and expense ratios.
• ETF Investment Calculator: Determines how much you need to invest to reach a specific financial goal within a certain timeframe.
• Nifty ETF Calculator: For Indian investors, this focuses on ETFs tracking the Nifty index, estimating returns based on the Nifty 50’s performance.
• ETF Expense Ratio Calculator: Helps understand how expense ratios affect returns over time.
• ETF SIP Calculator: Calculates future value of periodic investments in ETFs, considering expected returns and expense ratios.

How Does an ETF Calculator Work?

The ETF calculator is user-friendly and allows you to find out the future value of your investment while accounting for expense ratios. An ETF calculator works in the following way:

Step 1: Select the ETF

Search for the ETF you want to invest in. Analyze market conditions and determine your risk tolerance before selecting an ETF.

Step 2: Enter Investment Details 

Enter other details such as Investment Amount, Expected Return Rate and Time. These details are used by the calculator to calculate the output.

Step 3: Calculation and Result

The calculator uses the inputs entered and the expense ratio of the selected ETF to calculate the Estimated Returns and Total Amount at the end of the investment horizon.

How are ETF Investment Returns Calculated?

Your Initial Investment Amount in the ETF grows at your Expected Return Rate (P.A.). However, returns are reduced due to the fees charged for owning an ETF. The fee is calculated based on the expense ratio and the calculation is based on the current value of the investment and not on the initial investment amount.

ETF Calculation Formula

• For the first year,
  End Value₁ = Investment * ( 1 + Expected Return Rate )
  Expenses Incurred₁ = End Value₁ * Expense Ratio
  Future Value₁ = End Value₁ – Expenses Incurred₁
  Estimated Return₁ = Future Value₁ – Investment 
• For the second year,
  End Value₂ = Future Value₁ * ( 1 + Expected Return Rate )
  Expenses Incurred₂ = End Value₂ * Expense Ratio
  Future Value₂ = End Value₂ – Expenses Incurred₂
  Estimated Return₂ = Future Value₂ – Investment
  …
  …
  …
• For the nth year,
  End Value_(n) = Future Value_(n-1) * ( 1 + Expected Return Rate )
  Expenses Incurred_(n) = End Value_(n) * Expense Ratio
  Future Value_(n) = End Value_(n) – Expenses Incurred_(n)
  Estimated Return_(n) = Future Value_(n) – Investment
  Total Expenses Incurred_(n) = Expenses Incurred₁ + Expenses Incurred₂ + … + Expenses Incurred_(n)

Example of Using ETF Calculator

Suppose you entered the following inputs:

Initial Investment Amount= ₹1,00,000

Expected Return Rate (P.A.) = 10%

Time Period = 3 years

Total Expense Ratio = 1%

After first year,

End Value₁ = ₹1,00,000 * ( 1 + 10% ) = ₹1,10,000
Expenses Incurred₁ = ₹1,10,000 * 1% = ₹1,100
Future Value₁ = ₹1,10,000 – ₹1,100 = ₹1,08,900
Estimated Return₁ = ₹1,08,900 – ₹1,00,000 = ₹8,900

After second year,

End Value₂ = ₹1,08,900 * ( 1 + 10% ) = ₹1,19,790
Expenses Incurred₂ = ₹1,19,790 * 1% = ₹1,197.9
Future Value₂ = ₹1,19,790 – ₹1,197.9 = ₹1,18,592.1
Estimated Return₂ = ₹1,18,592.1 – ₹1,00,000 = ₹18,592.1
Total Expenses Incurred₂ = ₹1,100 + ₹1,197.9 = ₹2,297.9

After third year,

End Value₃ = ₹1,18,592.1 * ( 1 + 10% ) = ₹1,30,451.3
Expenses Incurred₃ = ₹1,30,451.3 * 1% = ₹1,304.51
Future Value₃ = ₹1,30,451.3 – ₹1,304.51 = ₹1,29,146.8
Estimated Return₃ = ₹1,29,146.8 – ₹1,00,000 = ₹29,146.8

Total Expenses Incurred₃ = ₹1,100 + ₹1,197.9 + ₹1,304.51 = ₹3,602.41

Result:

Total Investment = ₹1,00,000

Estimated Returns = ₹29,147

Total Amount = ₹1,29,147

How to Use Pocketful ETF Calculator?

The Pocketful ETF Calculator is an intuitive tool designed to help you estimate the future value of your investment while considering expense ratios. Follow these simple steps to make the most of it:

Step 1: Search ETF

Search for the ETF you want to invest in. If you are a beginner, you can select any popular ETF mentioned below the search bar to see how the calculator works.

Step 2: Enter the Investment Amount

Enter the amount you wish to invest in the “Investment” field or adjust the slider to the desired investment amount

Step 3: Enter the Expected Return Rate

Enter the expected annualized rate of return in the “Expected Return Rate (P.A.)” field.

Step 4: Choose the Investment Horizon

Select the investment horizon from the options given. The options include 5-day, weekly, monthly, yearly, etc.

Step 5: Review Your Results

After entering all the details, the calculator will display the following results:

• Total Investment: Your original investment amount.
• Estimated Returns: The total expected returns over the selected period.
• Total Amount: The estimated value of your investment after accounting for returns and expenses.

By using the Pocketful ETF Calculator, you can make informed investment decisions with clarity and ease.

Benefits of Using a Pocketful ETF Calculator Online

1. Financial Planning: Using the ETF calculator, investors can set clear investment goals and develop detailed plans to achieve financial milestones like early retirement or funding children’s education.
2. Future Value Prediction: The calculator employs algorithms to predict the future value of your ETF investments based on various parameters, allowing for quick and accurate projections.
3. Time-Saving: Manually calculating the future value of an ETF investment can be tedious and complex. The calculator simplifies this process, saving valuable time.
4. Comparative Analysis: Adjust variables such as investment amount, rate of return, and investment duration to compare different investment scenarios and strategies.

Best ETFs in India

India’s ETF market has grown significantly in recent years, offering investors various options. Here’s a list of 15 top-performing ETFs in India, based on their past returns as of March 20, 2025:

ETF Name	Symbol	6 Month Return	1 Year Return	5 Year Return	Price (₹)
Nippon India ETF Junior BeES	JUNIORBEES	-17.15%	8.69%	202.30%	667.50
SBI NIFTY NEXT 50 ETF	SETFNN50	-17.21%	8.68%	200.26%	658.41
KOTAK NV 20 ETF	KTKNV20ETF	-13.67%	3.25%	231.28%	142.44
Invesco India NIFTY ETF	IVZINNIFTY	-9.50%	6.39%	165.37%	2,601.98
Motilal Oswal M50 ETF	MOM50	-8.41%	7.54%	177.67%	238.71
Quantum Nifty ETF	QNIFTY	-9.81%	7.35%	182.40%	2,510.5
IDFC NIFTY ETF	IDFNIFTYET	-9.71%	7.31%	124.51%	251.09
SBI NIFTY 50 ETF	SETFNIF50	-9.66%	7.44%	172.45%	245.15
Invesco India Gold ETF	IVZINGOLD	19.06%	33.99%	108.57%	7,798.30
Kotak Nifty Bank ETF	BANKNIFTY1	-6.55%	9.08%	6.62%	514.93
Nippon India ETF Shariah BeES	SHARIABEES	-17.18%	-0.28%	117.68%	489.78
SBI 10 YEAR GILT ETF	SETF10GILT	3.66%	9.39%	36.30%	248.44
Edelweiss Nifty Bank ETF	EBANKNIFTY	-6.18%	-3.89%	-6.18%	50.22
UTI BSE Sensex ETF	UTISENSETF	-9.27%	7.03%	140.35%	829.35
CPSE ETF	CPSEETF	-13.50%	11.50%	441.93%	84.92

Best ETFs to Buy in 2025

Based on the latest performance data, here’s an overview of the 15 best ETFs in India:

1. Nippon India ETF Junior BeES (JUNIORBEES)

• Price: ₹667.50
• Returns: 6 Month: -17.15% | 1 Year: 8.69% | 5 Years: 202.30%
• Overview: Tracks the Nifty Next 50 Index, offering exposure to the next 50 largest companies after the Nifty 50. Excellent long-term performance, suitable for growth-oriented investors.

2. SBI NIFTY NEXT 50 ETF (SETFNN50)

• Price: ₹658.41
• Returns: 6 Month: -17.21% | 1 Year: 8.68% | 5 Years: 200.26%
• Overview: Also tracks the Nifty Next 50 Index, providing similar exposure to potential future large-cap stocks. Strong performer across all time frames.

3. KOTAK NV 20 ETF (KOTAKNV20)

• Price: ₹142.44
• Returns: 6 Month: -13.67% | 1 Year: 3.25% | 5 Years: 231.28%
• Overview: Tracks the Nifty50 Value 20 Index, focusing on value stocks within the Nifty 50. Impressive long-term performance, appealing to value investors.

4. Invesco India NIFTY ETF (IVZINNIFTY)

• Price: ₹2,601.98
• Returns: 6 Month: -9.50% | 1 Year: 6.39% | 5 Years: 165.37%
• Overview: Tracks the Nifty 50 Index, offering exposure to India’s top 50 companies. Solid performance across all time periods.

5. Motilal Oswal M50 ETF (MOM50)

• Price: ₹238.71
• Returns: 6 Month: -8.41% | 1 Year: 7.54% | 5 Years: 177.67%
• Overview: Also tracks the Nifty 50 Index, providing consistent performance, especially over the long term.

6. Quantum Nifty ETF (QNIFTY)

• Price: ₹2,510.5
• Returns: 6 Month: -9.81% | 1 Year: 7.35% | 5 Years: 182.40%
• Overview: Offers similar exposure to large-cap Indian stocks, with strong and consistent performance across time frames.

7. IDFC NIFTY ETF (IDFNIFTYET)

• Price: ₹251.09
• Returns: 6 Month: -9.71% | 1 Year: 7.31% | 5 Years: 124.51%
• Overview: Tracks the Nifty 50 Index. Newer ETF with limited long-term data but solid short and medium-term performance.

8. SBI NIFTY 50 ETF (SETFNIF50)

• Price: ₹245.15
• Returns: 6 Month: -9.66% | 1 Year: 7.44% | 5 Years: 172.45%
• Overview: Managed by SBI Funds Management, consistent performer across all time periods.

9. Invesco India Gold ETF (IVZINGOLD)

• Price: ₹7,798.30
• Returns: 6 Month: 19.06% | 1 Year: 33.99% | 5 Years: 108.57%
• Overview: Tracks domestic gold prices, providing exposure to gold without physical ownership. Moderate returns, useful for portfolio diversification.

10. Kotak Nifty Bank ETF (BANKNIFTY1)

• Price: ₹514.93
• Returns: 6 Month: -6.55% | 1 Year: 9.08% | 5 Years: 6.62%
• Overview: Tracks the Nifty Bank Index, offering focused exposure to the banking sector. Moderate short-term returns but strong long-term performance.

11. Nippon India ETF Shariah BeES (SHARIABEES)

• Price: ₹489.78
• Returns: 6 Month: -17.18% | 1 Year: -0.28% | 5 Years: 117.68%
• Overview: Tracks the Nifty50 Shariah Index, offering Shariah-compliant investment in large-cap stocks. Strong performer, especially in the short and long term.

12. SBI 10 YEAR GILT ETF (SETF10GILT)

• Price: ₹248.44
• Returns: 6 Month: 3.66% | 1 Year: 9.39% | 5 Years: 36.30%
• Overview: Tracks 10-year Government of India bonds, providing exposure to government securities. Lower but more stable returns, suitable for conservative investors.

13. Edelweiss Nifty Bank ETF (EBANKNIFTY)

• Price: ₹50.22
• Returns: 6 Month: -6.18% | 1 Year: -3.89% | 5 Years: -6.18%
• Overview: Offers exposure to the banking sector with moderate long-term performance.

14. UTI BSE Sensex ETF (SENSEXETF)

• Price: ₹829.35
• Returns: 6 Month: -9.27% | 1 Year: 7.03% | 5 Years: 140.35%
• Overview: Tracks the BSE Sensex, providing exposure to 30 largest and most actively traded stocks on BSE. Moderate performance across all time frames.

15. CPSE ETF (CPSEETF)

• Price: ₹84.92
• Returns: 6 Month: -13.50% | 1 Year: 11.50% | 5 Years: 441.93%
• Overview: Tracks the Nifty CPSE Index, investing in Central Public Sector Enterprises. Exceptional short-term performance, solid medium-term returns.

Data as of March 20, 2025, between 3 pm – 4 pm

These ETFs offer diverse investment options, covering various indices, sectors, and asset classes. The Nifty Next 50 and Value 20 ETFs have shown strong performance across all time frames. Nifty 50 ETFs offer consistent returns, while sector-specific and thematic ETFs like Gold, Banking, and Shariah-compliant options provide targeted exposure. The CPSE ETF stands out with its exceptional short-term performance. When choosing among these ETFs, investors should consider their risk tolerance, investment horizon, and overall portfolio strategy.

Similarities Between ETFs and Mutual Funds

A mutual fund can do much of what an ETF does, so let’s understand their similarities.

1. Diversification: Both mutual funds and ETFs offer investors access to a diversified portfolio of assets. They pool money from multiple investors to invest in a variety of securities such as stocks, bonds, or other assets. This diversification spreads out portfolio risk, reducing the impact of market fluctuations on individual investments.
2. Professional Management: Experienced fund managers or investment teams manage both mutual funds and ETFs. These professionals perform extensive research and analysis before making investment decisions, aiming to achieve the best possible returns for investors.
3. Dividend Reinvestment: Both mutual funds and ETFs utilize the power of dividend reinvestment. This feature allows investors to automatically reinvest dividends received, potentially compounding their returns over time. It’s a popular strategy among investors seeking to maximize the growth of their investments.
4. Liquidity: Both mutual funds and ETFs offer liquidity to investors, allowing them to buy and sell shares at market prices. Mutual funds typically transact at the end of the trading day based on the fund’s net asset value (NAV), while ETFs trade throughout the day on stock exchanges like individual stocks.

Differences Between ETFs and Mutual Funds

While both ETFs and mutual funds offer ways to invest in a diversified portfolio, they have some key differences:

• Trading: ETFs trade like stocks throughout the day, while mutual funds are priced and traded once daily after market close.
• Minimum Investment: ETFs often have lower minimum investment requirements compared to mutual funds.
• Costs: ETFs typically have lower expense ratios than actively managed mutual funds.
• Transparency: ETFs disclose their holdings daily, while mutual funds usually do so monthly or quarterly.
• Tax Efficiency:
  ETFs are generally more tax-efficient due to their structure and lower turnover.
• Example: For example, if you want to invest ₹5,000 in the Nifty 50, you could buy about 18 units of Nippon India ETF Nifty 50 BeES (assuming a price of ₹276 per unit). With a mutual fund, you might need a higher minimum investment, sometimes ₹5,000 or more.

ETFs vs. Equity Stocks

While both ETFs and individual stocks are traded on exchanges, they differ in several ways:

• Diversification: An ETF provides instant diversification across multiple stocks, while buying individual stocks requires building your own diversified portfolio.
• Risk:
  ETFs generally carry lower risk due to diversification, while individual stocks can be more volatile.
• Management: ETFs are professionally managed to track an index, while individual stocks require more active management from the investor.
• Dividends: ETFs may pay dividends from multiple companies, while individual stocks pay dividends from a single company.

For instance, buying Nippon India ETF Nifty 50 BeES shares gives you exposure to all 50 companies in the Nifty 50 index. To achieve the same diversification with individual stocks, you’d need to buy shares of all 50 companies separately.

How to Invest in ETFs

Investing in ETFs is relatively straightforward. Here’s a step-by-step guide:

1. Open a Demat and Trading Account: You’ll need these accounts to buy and hold ETFs. Many brokers offer online account opening.
2. Choose Your ETFs: Research and select ETFs that align with your investment goals and risk tolerance.
3. Place an Order: Log into your trading account, search for the ETF you want to buy, and place a buy order. You can choose between market orders (buy at current market price) or limit orders (buy only at a specified price or lower).
4. Monitor and Rebalance: Keep track of your ETF investments and rebalance your portfolio as needed to maintain your desired asset allocation.

For example, if you want to invest in the Nifty 50 index, you could search for “NIFTYBEES” in your trading platform and place an order for the number of units you want to buy.

Remember, it’s always wise to start with a small investment and gradually increase as you become more comfortable with ETF investing.

ETF Expense Ratios and Their Impact

Expense ratios significantly impact your ETF returns over time. An ETF expense ratio calculator helps you understand how these costs reduce overall returns. By comparing ETFs with different expense ratios, you can choose funds that offer the best value.