Examine the best Exchange-Traded Funds (ETFs) of 2024 that are suited for Indian investors. Investing in gold, sectors, bonds, currencies, global indices, tech-focused NASDAQ 100 trackers, and other assets is made easier with the strategic insights offered by this guide. Use our carefully chosen list to navigate the ever-changing world of exchange-traded funds and to further your wealth-building endeavors.
Making the decision to enter the dynamic world of investing requires thought and planning. An increasingly popular choice among Indian investors are Exchange-Traded Funds (ETFs), which provide diversified exposure and are frequently compared to stocks. We explore the complexities of exchange-traded funds (ETFs) in this guide, revealing the best options in a range of categories, including gold, index, sector, and bond ETFs. Come along as we examine the Top 11 ETF Picks for Indian Investors in 2024, catered to Indian investors looking to build diversified, international portfolios.
Exchange-Traded Funds, or ETFs, are investment vehicles that trade similarly to stocks on stock exchanges. They invest in a wide variety of tradable financial assets, such as shares, bonds, and derivatives, by pooling the money of several investors. ETFs, which are registered with the Securities and Exchange Board of India (SEBI), present a compelling choice for investors with different degrees of stock market experience.
ETFs, which blur the distinction between stocks and mutual funds, are traded as shares on stock exchanges and offer flexibility during hours of equity trading. An ETF is a dynamic and responsive investment tool since the underlying assets in its portfolio affect its share price. Read more such articles on Vantage Vista Blog.
India's Top ETF Categories:
India offers six main ETF categories: Index ETFs, Gold ETFs, Sector ETFs, Bond ETFs, Currency ETFs, and Global Index ETFs. These categories cater to a wide range of investment preferences. Let’s examine the best ETFs for 2024 in each category:
1. Index ETFs: U.S. Bank Global technology giants are exposed to the NASDAQ 100 ETF, which replicates the performance of the NASDAQ 100 Index.
HDFC Sensex ETF: This ETF offers a strong basis for exposure to the Indian market while attempting to match the S&P BSE SENSEX Index.
2. Gold ETFs: The IDBI Gold ETF provides a convenient way to invest in gold while trying to replicate the performance of real gold.
ETF for Invesco India Gold: With returns that track gold prices, this exchange-traded fund (ETF) gives investors access to the precious metals market.
3. Sector ETFs: Nippon India ETF Consumption: This ETF targets investors interested in India’s consumer-driven sectors and focuses on the Nifty Consumption Index.
Kotak NV 20 ETF: This ETF, which tracks the NV 20 Index, is a good choice for investors who want exposure to premium stocks.
4. ETFs for bonds: Japan India ETF Long Term Gilt This ETF, which tracks the Nifty 8–13 year G-Sec Index, is a great option for investors who prefer longer-term government securities.
SBI-ETF 10Y Gilt: This ETF is well-positioned for investors considering government securities, providing returns consistent with the underlying index.
5. Exchange-traded funds: India Earnings WisdomTree Fund (EPI): This exchange-traded fund (ETF) offers exposure to India’s earnings potential by tracking the price and yield performance of the WisdomTree India Earnings Index.
6. Global Index Exchange-Traded Funds (ETFs): The Nippon ETF Hang Seng BeES, which tracks the Hang Seng Index, provides access to Hong Kong stock market investment opportunities.
Motilal Oswal NASDAQ 100 ETF: This ETF offers access to the performance of leading international tech companies and is focused on the NASDAQ 100 Index.
Things to Think About Before Investing: DEMAT Account and Brokerage Fees: Before making an investment, investors should be aware that buying exchange-traded funds (ETFs) may result in brokerage fees. It might be required to operate a DEMAT account, which calls for a rudimentary understanding of stock market operations.
Volatility of the Stock Market: ETFs see price swings as a result of market trends. It is important for investors to adjust their investment strategies to account for the inherent volatility.
Diversification: While ETFs provide a moderate level of diversity, investors should be aware that ETFs that are passively managed may fail to recognize smaller businesses that have room to grow.
Top 11 ETF Picks for Indian Investors in 2024 :
Motilal Oswal NASDAQ 100 ETF: A top pick for investors seeking exposure to global tech giants.
HDFC Sensex ETF: Providing a foundation for Indian market exposure, this ETF is well-regarded for its alignment with the S&P BSE SENSEX Index.
Top Gold ETFs in India for 2024:
IDBI Gold ETF: A reliable choice for investors looking to track the performance of gold.
Invesco India Gold ETF: Offering returns corresponding to gold prices, this ETF facilitates participation in the precious metal’s market movements.
Top Sector ETFs in India for 2024:
Nippon India ETF Consumption: Catering to India’s consumer-driven sectors, this ETF is a standout choice.
Kotak NV 20 ETF: Aligned with the NV 20 Index, this ETF is ideal for those seeking exposure to high-quality stocks.
Top Bond ETFs in India for 2024:
Nippon India ETF Long Term Gilt: Geared towards longer-term government securities, this ETF provides stability.
SBI-ETF 10Y Gilt: Suited for investors eyeing government securities, this ETF aligns with the underlying index.
Top Currency ETF in India for 2024:
India Earnings WisdomTree Fund (EPI): Offering exposure to India’s earnings potential, this ETF tracks the WisdomTree India Earnings Index.
Top Global Index ETFs in India for 2024:
Nippon ETF Hang Seng BeES: A gateway to the Hong Kong stock market, this ETF aligns with the Hang Seng Index.
Motilal Oswal NASDAQ 100 ETF: Providing access to global tech giants, this ETF focuses on the NASDAQ 100 Index.
Top 11 ETF Picks for Indian Investors in 2024 Conclusion:
Indian Investors’ Top 11 ETF Selections for 2024 In conclusion, selecting the appropriate ETFs becomes critical for Indian investors as we traverse the complexity of international markets. The thoughtfully chosen list for 2024 offers a road map for assembling a diversified and strong investment portfolio, regardless of your preference for tech companies, gold, particular industries, bonds, currencies, or worldwide indices. Recall that in the constantly changing world of exchange-traded funds (ETFs), knowing your financial objectives and risk tolerance is essential to making wise investment choices.
Top 11 ETF Picks for Indian Investors in 2024 FAQs
A group of securities that combine elements of stocks and mutual funds and are traded on stock exchanges is known as an exchange-traded fund (ETF). ETFs trade like individual stocks throughout the trading day, in contrast to mutual funds.
Like individual stocks, ETF shares can be purchased and sold through a brokerage account. Orders are accepted from investors during market hours, and deals are carried out at market rates.
ETFs provide flexibility, low fees, and diversification. Their ability to expose investors to a wide range of assets, such as stocks, bonds, and commodities, makes them a desirable option for those looking to diversify their portfolio.
ETFs trade on stock exchanges like individual stocks, but mutual funds and exchange-traded funds (ETFs) pool money from multiple investors to invest in a diversified portfolio. At the close of trading, mutual funds are bought and sold at their net asset value (NAV).
In order to ensure compliance with regulatory requirements and investor protection measures, the majority of exchange-traded funds (ETFs) in India are registered with the Securities and Exchange Board of India (SEBI).
Take into account the underlying assets of the ETF, your investing objectives, risk tolerance, and expense ratios. To make well-informed decisions, examine trading volume, performance history, and the fund manager’s approach.
ETFs can, in fact, be appropriate for long-term investors. Their diversified nature and low expense ratios make them appealing for constructing a long-term, reliable portfolio.
Review your ETF investments on a regular basis, taking into account things like market conditions, modifications to your financial objectives, and whether or not your portfolio is in line with them. A few investors review their investments every quarter or year.
It’s true that when purchasing and selling ETFs, investors may have to pay brokerage fees. Moreover, some ETFs have expense ratios that account for both running and management costs. Understanding these fees and how they affect overall returns is essential.
Yes, because they are liquid and can be bought and sold at any time during the trading day, exchange-traded funds (ETFs) are frequently used for short-term trading. On the other hand, transaction costs and possible tax ramifications should be considered by investors.