ETFs in India — Explore Exchange Traded Funds

Exchange-traded funds (ETFs) are mutual fund schemes that trade on the NSE and BSE like shares. This page tracks the Indian ETF universe — index ETFs on the Nifty 50 and Sensex, gold and silver ETFs, sector and factor ETFs — with prices, returns and costs in one place.

How ETFs differ from regular mutual funds

• You need a demat account. ETFs are bought and sold through a broker at market price during trading hours, not at end-of-day NAV like a normal fund.
• Costs are lower. Index ETFs in India commonly charge 0.05–0.30% — below even direct-plan index funds — though you also pay brokerage and the bid-ask spread when trading.
• Price can drift from value. An ETF's market price can trade slightly above or below its indicative NAV (iNAV) when liquidity is thin; checking volumes before buying matters.
• No SIP by default. Most brokers let you automate ETF purchases, but the native SIP experience of open-ended funds (from ₹100–500 a month) is simpler for beginners — see SIP vs lumpsum.

ETF or index fund?

For most long-term investors the choice is between an ETF and an index fund tracking the same index. The index fund wins on convenience (no demat, NAV pricing, easy SIP); the ETF wins on expense ratio and intraday control. Tracking difference — how closely the product follows its index — matters more than tiny expense gaps, and is explained in the glossary. Equity ETFs are taxed like equity funds: long-term gains above ₹1.25 lakh a year at 12.5%, short-term at 20%. Gold ETFs follow different rules, so check the specific scheme. Use the screener to find index funds to compare against, or the compare tool for head-to-head analysis.

Frequently asked questions

Do I need a demat account to buy an ETF?

Yes. ETF units sit in your demat account and trade through your broker. If you do not have one, an index fund from the same AMC is the closest demat-free alternative — browse them via the fund house directory.

Which is cheaper — an ETF or an index fund?

ETFs usually carry the lowest expense ratios in India, but add brokerage and spread costs per trade. For small monthly investments the all-in difference is often negligible; for large lumpsums the ETF's lower expense ratio compounds meaningfully.

Why does an ETF's price differ from its NAV?

Because the price is set by supply and demand on the exchange. In liquid ETFs market makers keep price close to iNAV; in thinly traded ones the gap can widen — always use limit orders in such cases.