Top ETFs in India: A Guide to the Best Exchange-Traded Funds for 2024

Exchange-Traded Funds (ETFs) have gained significant popularity among Indian investors due to their low cost, liquidity, and diversified exposure to a range of asset classes. ETFs are a type of investment fund that tracks the performance of an index, sector, commodity, or a group of assets and are traded on stock exchanges like regular stocks. In India, ETFs offer an efficient way to invest in domestic and international markets while maintaining low expense ratios. In this article, we will explore some of the best ETFs available in India and why they could be a good choice for investors.

1. What are ETFs and How Do They Work?
ETFs are investment funds that hold a basket of securities (such as stocks, bonds, or commodities) and aim to replicate the performance of a specific index or sector. Unlike mutual funds, ETFs are traded on stock exchanges, allowing investors to buy and sell units throughout the trading day at market prices, which can fluctuate.

One of the key benefits of investing in ETFs is their low cost. Most ETFs have lower expense ratios compared to mutual funds because they are passively managed, tracking an index rather than being actively managed by fund managers. This makes them an attractive option for long-term investors looking for broad market exposure at a low cost.