Exchange-Traded Funds (ETFs) have gained significant attention among Indian investors as a reliable way to invest in stock markets without directly picking individual stocks. ETF investments offer a blend of diversification and liquidity, making them an excellent choice for beginners and experienced investors.
With 2025 on the horizon, it’s crucial to assess the top-performing ETFs based on past returns and potential future growth.
1. Nippon India ETF Junior BeES (JUNIORBEES)
Nippon India ETF Junior BeES is a strong contender for those looking to tap into India’s mid-cap segment. This ETF tracks the NIFTY Next 50 index, which consists of companies that are potential candidates for the NIFTY 50 in the future.
1-Year Return: 15.45%
3-Year Return: 31.14%
5-Year Return: 125.92%
Its strong five-year performance makes it attractive for long-term investors aiming to ride the growth of emerging market leaders. Investors looking for steady capital appreciation beyond large-cap stocks may find this ETF a well-balanced option.
2. SBI NIFTY NEXT 50 ETF (SETFNN50)
Investors looking for an ETF with a blend of stability and growth should consider SBI NIFTY NEXT 50 ETFs. It mirrors the performance of the NIFTY Next 50 index, which consists of the top 50 stocks outside the NIFTY 50.
1-Year Return: 16.32%
3-Year Return: 48.39%
5-Year Return: 126.35%
With impressive three-year and five-year returns, this ETF is ideal for investors looking to stay ahead of market trends without actively managing their portfolios.
3. KOTAK NV 20 ETF (KOTAKNV20)
If you are considering a focused strategy that targets high-potential stocks, KOTAK NV 20 ETF is worth exploring. It follows the NIFTY Alpha 50 index, which consists of companies with a strong historical performance in earnings and returns.
1-Year Return: 14.58%
3-Year Return: 48.15%
5-Year Return: 156.13%
With the highest five-year return among the ETFs listed, this ETF caters to investors looking for aggressive capital appreciation. However, given its focus on high-growth stocks, investors should be comfortable with potential market fluctuations.
4. Invesco India NIFTY ETF (IVZINNIFTY)
Investors who prefer large-cap stability with steady growth can consider Invesco India NIFTY ETF. This ETF closely tracks the NIFTY 50, offering exposure to India’s top-performing blue-chip companies.
1-Year Return: 6.86%
3-Year Return: 31.15%
5-Year Return: 97.10%
While its one-year return is lower than mid-cap-focused ETFs, its long-term performance demonstrates resilience. Investors looking for a relatively stable yet rewarding long-term ETF investment may find this fund appealing
5. Motilal Oswal M50 ETF (MOM50)
For investors who want exposure to a fundamentally strong basket of large-cap stocks, Motilal Oswal M50 ETF offers a balanced opportunity. This ETF invests in the NIFTY 50 index, ensuring a mix of well-established companies across sectors.
1-Year Return: 6.43%
3-Year Return: 30.56%
5-Year Return: 98.83%
With its steady five-year performance, this ETF is an excellent option for investors seeking long-term growth without excessive market volatility.
6. Quantum Nifty ETF (QNIFTY)
A well-structured ETF that mirrors the movements of the NIFTY 50, Quantum Nifty ETF provides a straightforward investment option for those who prefer index investing.
1-Year Return: 7.00%
3-Year Return: 32.00%
5-Year Return: 98.10%
This ETF is particularly suited for passive investors who want to park their funds in a reliable instrument without frequent trading.
7. Bandhan NIFTY ETF (IDFNIFTYET)
Bandhan NIFTY ETF is another solid choice for investors tracking the NIFTY 50 index. It offers diversified exposure to India’s top large-cap companies and has delivered consistent returns.
1-Year Return: 7.03%
3-Year Return: 32.49%
5-Year Return: 104.19%
With its relatively better five-year performance than other NIFTY-based ETFs, it is an excellent investment avenue for those seeking balanced risk and return.
8. SBI NIFTY 50 ETF (SETFNIF50)
SBI NIFTY 50 ETF offers a solid investment option for investors prioritising long-term wealth accumulation with lower volatility.
1-Year Return: 7.38%
3-Year Return: 32.04%
5-Year Return: 93.03%
Tracking the NIFTY 50 index, this ETF ensures exposure to India’s leading companies. It is best suited for conservative investors aiming for steady growth over time.
Using a Stock Return Calculator for Better Investment Decisions
A Stock Return Calculator is a valuable tool that helps investors assess potential gains from their ETF investments. Investors can estimate expected future growth by inputting the amount invested, time horizon, and past returns
Benefits of using a Stock Return Calculator:
Helps compare different ETFs based on historical performance.
Assists in setting realistic investment goals.
Provides insights into risk and reward potential.
Before investing, using such tools to evaluate different ETFs and ensure they align with your financial objectives is advisable.
The ETFs discussed in this post present substantial investment opportunities for 2025, catering to various investor needs—long-term growth, mid-cap exposure, or large-cap stability.
By analysing past performance and using tools like a Stock Return Calculator, investors can make informed decisions to build a robust portfolio. With the proper ETF selection and strategy, 2025 could be a rewarding year for Indian investors seeking steady growth in the stock market.
