Introduction

When it comes to investing, diversification is the golden rule. Spreading investments across various asset classes minimises risk while maximising growth potential. Exchange-traded funds (ETFs) have emerged as one of the most versatile and efficient ways to invest in the financial markets. They combine the best of both worlds: the diversification of mutual funds and the ease of trading individual stocks. Savvy investors increasingly turn to ETFs to build a balanced portfolio that spans equity, commodities, and global markets. With low expense ratios and numerous options catering to different risk appetites and financial goals, ETFs are changing how Indians approach wealth creation.

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Top Performing ETFs in India

As 2025 progresses, some ETFs stand out as reliable options for building a balanced portfolio. Let’s explore the top-performing ETFs in India, offering robust returns and diverse exposure.

• Motilal Oswal NASDAQ 100 ETF (MON100)

If the global technology sector excites you, the Motilal Oswal NASDAQ 100 ETF is a must-have in your portfolio. As of 17th January 2025, this ETF manages assets worth ₹8,868 crore. It tracks the NASDAQ 100 index, which includes global tech giants like Apple, Microsoft, and Tesla.

With a stellar 1-year return of 31.5% and an impressive 5-year annualised return of 23.4%, MON100 has consistently outperformed. The fund’s performance highlights the resilience and innovation of the U.S. technology sector, making it an excellent choice for long-term wealth creation.

• Nippon India ETF Nifty 50 BeES (NIFTYBEES)

For investors who prefer domestic equities, NIFTYBEES is a top contender. As of 17th January 2025, it boasts an asset base of ₹36,639 crore and an ultra-low expense ratio of 0.04%. This ETF tracks the Nifty 50 index, offering exposure to India’s largest and most liquid companies.

The fund’s 1-year return of 6.2% reflects moderate market conditions, but its 5-year return of 14.6% demonstrates consistent growth, making it an ideal choice for investors seeking steady and reliable performance.

• Nippon India ETF Bank BeES (BANKBEES)

Banking is a cornerstone of India’s economy, and the Nippon India ETF Bank BeES provides focused exposure to this sector. As of 17th January 2025, the ETF manages ₹7,335 crore in assets. It tracks the Nifty Bank index, comprising leading banks like HDFC Bank, ICICI Bank, and State Bank of India.

The 1-year return of 3.1% reflects a challenging year for the sector, but its 5-year return of 9.2% underscores its long-term potential. As India’s economy grows and credit demand rises, BANKBEES is poised to benefit.

• Nippon India ETF Gold BeES (GOLDBEES)

Gold has always been a reliable hedge against market volatility, and GOLDBEES offers a convenient way to invest in this precious metal. As of 17th January 2025, the fund manages ₹15,190 crore in assets with an expense ratio of 0.81%.

The ETF’s 1-year return of 24.9% underscores its value as a safe-haven asset during uncertain times. Its 5-year return of 13.4% and lifetime return of 11.5% make it a trusted choice for investors looking to add stability to their portfolios.

• Nippon India Silver ETF (SILVERBEES)

For those exploring alternatives to gold, the Nippon India Silver ETF offers exposure to silver, a metal with growing industrial and renewable energy applications. As of 17th January 2025, this ETF manages ₹5,313 crore in assets.

With a 1-year return of 26.5% and a lifetime return of 13.6%, SILVERBEES has captured the rising demand for silver in global markets. It’s an excellent option for investors seeking growth-oriented diversification.

• Nippon India ETF Hang Seng BeES (HNGSNGBEES)

Global diversification is key to building a robust portfolio, and the Nippon India ETF Hang Seng BeES provides exposure to top companies in China and Hong Kong. As of 17th January 2025, this ETF has an AUM of ₹745 crore.

The fund’s 1-year return of 33.2% reflects the resurgence in Asian markets, while its lifetime return of 6.4% highlights its potential for long-term growth. It’s a great pick for investors seeking to diversify geographically.

Conclusion

ETFs offer a unique blend of diversification, transparency, and cost efficiency, making them an ideal investment tool for beginners and experienced investors. Whether you are looking to capitalise on the growth of the U.S. tech sector, invest in India’s blue-chip companies, or hedge against market volatility with commodities, ETFs provide tailored solutions to meet diverse financial goals.

As markets evolve, selecting the right ETFs can help you stay ahead of the curve, balancing risk and reward while building wealth sustainably. Wealth management partners like Motilal Oswal will help make your investment more efficient, accessible, and rewarding, and your financial future more secure.

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