The Best Performing ETFs of the Last Decade in India: All You Need to Know

Hello, dawg! If you have been looking at investing in ETFs as the cool new way to bring swag into your portfolio, this article is going to get you stoked. ETFs are the Swiss Army knives of investing-intrinsically flexible, wonderfully varied, and very well suited for a wide variety of investors' needs who want diversification without getting bogged down with dealing directly in stocks. Well, today we will look at the top-performing ETFs in India over the last decade. Buckle up in this article to find out which one has been hitting the high notes, and why they just might be your ticket to investment success.

What Makes ETFs Shine?

First, though, let me briefly run through what makes these instruments such a great investment product to begin with. Diversity brought together in one fund, with a suite of underlying assets including stocks, bonds, and many others-can be obtained by investing in this ETF. Listed on an exchange as would any other stock, they are versatile and can be easily traded as such. Also, their expense ratios are pretty low compared to many of the more traditional mutual funds. Diversification in one stop shopping at its best!

1. Nippon India ETF Nifty BEES

NIFTYBEES is the largest and most popular Rockstar of the Indian ETF market tracking the Nifty 50 index, one of the leading stock market indices of India. Over the last decade, NIFTYBEES has emerged as one of the best performers that could offer a right blend of stability and growth to its investors.

Why NIFTYBEES?

Comprehensive Exposure: It's a fund that invests in the Nifty 50, comprising the 50 largest and most liquid Indian securities. Strong Performance: The performance has oscillated in a tightly coiled range for far too long; therefore, this fund has emerged as one of the probable sources of long-term growth.

Low Expense Ratio: It is an inexpensive way to access a broad market index.

Example: A purchase of NIFTY BEES is akin to owning a slice of the top 50 Indian companies. It is an efficient way of getting exposure to the whole gamut of Indian stocks with a single investment.

2. HDFC Nifty 50 Index Fund (HDFCNIF)

The next one is the HDFC Nifty 50 Index Fund. Though technically a mutual fund, it works just like an ETF because of its tracking performance with the Nifty 50 index. This has been among the best performers in the last ten years and enabled any investor to take a ride on the growth in the country's economy.

Why HDFCNIF?

Steady Growth: Invests in the Nifty Fifty-assures you of investment in India's biggest companies.

Performance: Steady returns are credited to this fund.
Diversification: A wide dispersion offered regarding sectors in the Nifty 50 Index.
Example: Think of HDFCNIF as a board ticket to the India economic success story. Ideal for someone who is looking for stability in his or her investment, with no need to choose any one particular stock.

3. ICICI Prudential Nifty Next 50 Index Fund (ICICINXT50)

To investors who would look beyond the Nifty 50, the ICICI Prudential Nifty Next 50 Index Fund would be a very good option. The ETF tracks the Next Nifty 50 index. The latter consists of a basket of the next 50 largest stocks in continuation to the Nifty 50.

Why ICICINXT50?

Growth Potential: Since this focuses on the next biggest 50 companies, hence offers growth opportunities.

Diversification: Exposure to a mix of industries and sectors.

Strong Returns: Excellent historical performance and promising future ahead. Opportunity to move before these stocks truly reach the current leading positions of the Nifty 50. A good way to catch growth in emerging large-cap stocks.

4. UTI Nifty Index Fund (UTINIFTY)

Another heavyweight in the Indian ETF space is the UTI Nifty Index Fund. Like NIFTYBEES, it also tracks the Nifty 50 index, though it may be different in style of tracking and management. For a period of the last ten years, it has proved to be a performer on whom one can always rely.

Why UTINIFTY?

Stable Performance: UTINIFTY tracks the Nifty 50 hence assured returns.

Reputed Fund House: UTI, one of India's premier fund houses.

Diversified Exposure: This scheme shall have wide exposure to the market with a single investment. Example: UTINIFTY is the go-to ETF for diversified, steady investment in India's largest companies. It tried and works when looking to benefit from the performance of the broader market.

5. SBI ETF Nifty Bank SETFNIFBK

That would be an excellent pick for one who intends to focus on the banking sector: SBI ETF Nifty Bank. This would follow the Nifty Bank index, which includes the major banking stocks of India. It has done really well in the last ten years because the growth in the banking sector of India was relatively higher.

Why SETFNIFBK?

Sector Focused: Invests in the Banking sector, which has seen good growth.

High Returns: The sector has seen a very strong performance in the past; Indian banks are growing and continue to grow. This is focused exposure intended for investors desiring to take concentrated bets on the growth of the banking sector. Example: If you invest in the SETFNIFBK, you are betting that the Indian banking industry will keep growing. That's an interesting way of targeting one particular industry, which has shown strong performance in the last decade.

Invest in ETF Tips: Know Your Goal: Choose between General Market exposure and sector-specific investment Schemes; Check the Historical Performance Past performance gives you an idea about the future potential. It may or may not guarantee it; Consider Fees The lesser the expense ratio, the higher would be your return after some time.

Keep Yourself Informed: Keep eyes and ears open to market trends and change your investments accordingly.

Conclusion

Indeed, over the last decade or so, the journey for many investors in India who have put their money into ETFs has been quite rewarding. From broad market exposure with NIFTY BEES to sector-specific plays like SETFNIFBK, almost every investment strategy finds an ETF match. While taking cognizance of these top performers for your portfolio, remember that smart investing is essentially selecting the products to serve your financial goals and risk tolerance.

Maybe you have your favorite ETF, or you want to learn how to choose the right one in line with your needs? Leave a comment below, hit that subscribe button for more tips and updates. Here's to savvy investing in 2024 and beyond!