Exchange Traded Funds become one of the most popular and attractive investing options. After the mutual funds were introduced ETFs become more popular. In India, it is one of the great sectors to invest in. Here we will discuss Best ETFs in India in 2022. Many beginners can’t find the best ETFs for them and looking for it.
If you are looking for ETF advice and want to know the best ETFs in India, then you have come to the perfect place to learn. Here we will cover all the facts and points about ETFs. Before beginning the main topic we discuss briefly about ETF.
What is an ETF?
The full form of ETF is Exchange Traded Funds. ETFs are the pool of investment, where many people invest their money and ETFs invest it in stocks, bonds, currencies and commodities. ETFs are much similar to mutual funds. Both invest in multiple sectors. But mutual funds do not trade in exchanges, whereas ETFs do.
ETFs trade like stocks. It trades in the trading hours. Like stocks, you can buy an ETF at a certain price. When the price gets higher sell it and take your profit. Mostly the ETFs price increase when any underlying asset or stocks price increases. Thus you can earn the profit. The profit is calculated by the difference between the selling price and purchase price.
Earning From ETFs
If compared with mutual funds then ETFs are the best way to invest. You can consider investing in one particular stock instead of in ETFs. Also, you can choose your preferable sector to invest in ETFs. There are mainly two ways to earn from ETFs.
Firstly, The assets you choose in ETF will give you dividend funds. These dividend funds will be calculated as your earnings.
Secondly, if the stock’s or the asset’s price gets higher than you own, the ETF’s price will get higher. These are ways you can earn profit from ETFs.
Types of ETFs
ETFs are divided in several types. These are listed below.
- Sector ETFs
- Currency ETFs
- Bond ETFs
- Gold ETFs
- Index ETFs
- Global ETFs
We have mentioned the best ETFs of each sector below.
Best ETFs in India 2022
We have discussed briefly what is an ETF. If you are willing to buy and invest in ETFs then this will help you to know the best ETFs in India in 2022. We have listed below the best ETFs.
Best ETFs in India with AUM
|NO.||ETFs NAME||TOTAL AUM (CR)|
|1.||Motilal Oswal NASDAQ 100 ETF||RS. 31048|
|2.||UTI Sensex EXCHANGE TRADED FUND||RS. 2,23,499.21|
|3.||Nippon ETF Liquid BeES||RS. 5549.08|
|4.||HDFC Gold EXCHANGE TRADED FUND||RS. 4,39,939.45|
|5.||SBI ETF Sensex||RS. 6,43,285.27|
|6.||Nippon India ETF Long Term Guilt||RS. 2,77,915.13|
|7.||ICICI PRUDENTIAL NV20 ETF||RS. 78,127.92|
|8.||India Earning Wisdom Tree Fund (EPI)||RS. 2,77,915.13|
|9.||Motilal Oswal NASDAQ 100 ETF||RS. 31,048.98|
|10.||SBI ETF 10 Year Guilt||RS. 6,43,285.27|
This is as on 7 Aug 2022.
The average returns are based on the underlying index.
The source of this data is – www.mutualfundindia.com.
How to invest in ETFs
To invest in ETFs is likely to stocks. Both traded on the stock exchange. The trading will be done within the trading hours. You need to open a Demat account through any discount broker. In ETFs, you can choose your preferable bonds, securities, or commodities such as gold and silver. Like stocks, you can buy an ETF at a certain price. Then if any asset’s price, underlying in the ETF increases, the ETF’s price gets higher. The investor can sell the ETF at a higher price and make a profit. The ETFs are traded in high volume, as it trade on multiple number of stocks or basket of stocks. This high volume denotes the high liquidity of ETFs.
ETFs trade in variety of stocks. Also the underlying asset consists in much volume. That makes liquidity of the ETFs. Moreover, it makes a easier way for the trades to hold or exit their position.
Benefits of Investing in Exchange Traded Funds
Some advantages or benefits you can get from investing in ETFs or Exchange Traded Funds.
1. High Liquidity
ETFs give the traders high liquidity for trading, thus they can easily change their position at any time in the trading time.
2. Minimum Cost
In ETF you can trade with low capital because it offers you to buy one stock at the one share cost.
3. Tax Efficient
As ETFs are traded like buy and selling execute in the open trading market. This will not reflect any impact on tax. So a retail investor will get the tax concession.
The best part of Exchange Traded Funds is the transparency of this trade. Every day when the trading time begins you will get the report of your holdings position.
This was the best ETFs in India in 2022 we have listed. Hope you can pick any one to invest. ETF is that sector that can make a diversification in your portfolio.
Before investing consider the facts for investing. ETF is the great way for the small traders. If you can use the tool properly you can definitely make profits from it and make your dream true.
HAPPY & SAFE INVESTING.
Is ETF good for long term in India?
Yes, you can trade for the long term in ETFs. As experts say, ETFs are a much safe option for long-term investment. Because ETFs are not so volatile as stocks and indicis, rather it is silent in its movement character. So the investors can relay more on it.
Is ETF better than mutual fund?
Compared with mutual funds, ETFs are better. In mutual funds you need to invest the minimum required funds. But in ETFs you can invest only one price of any underlying asset. Moreover, ETFs have the more liquidity and transparency than mutual funds. Also it is tax efficient.
Can you get rich off ETFs?
The disciplined trading and with right strategy you can be a millionerd. Even with a decent salary and investing in the right approach to ETFs you can get the profit you want and full fill all dream with one transaction.