oday, the Nifty 50 Index showed a downward trend, currently standing at 24,183.70, a drop of 155.45 points or 0.64% as of 10:43 a.m. IST. After opening higher at 24,328.85, the index saw volatility, reaching an early high of 24,378.65 before dropping to a low of 24,158.25. This performance reflects caution in the market as investors weigh global economic uncertainties. The Nifty 50 remains well below its 52-week high of 26,277.35, though it is still far from the 52-week low of 19,210.90, suggesting potential for a rebound if market conditions improve.
With the recent dip in the Nifty Index, investors are looking for ways to secure their portfolios while maintaining growth potential. Exchange-Traded Funds (ETFs) offer a diverse and often lower-risk method for exposure to multiple sectors, making them a popular choice during market downturns. Here’s a curated list of the best ETFs to consider in today’s market, focusing on a mix of Indian and global options that have a history of resilience, solid returns, and sector diversity.
1. Nippon India ETF Nifty BeES
- Overview: Tracks the Nifty 50 index, providing a comprehensive snapshot of India’s large-cap equities.
- Why It’s Good: Great for stable, long-term growth, especially during Nifty corrections.
2. SBI Nifty Next 50 ETF
- Overview: Focuses on the Nifty Next 50, capturing companies just below the top 50 in market cap.
- Why It’s Good: Diversification across high-potential companies on the verge of large-cap growth.
3. HDFC Sensex ETF
- Overview: Mimics the BSE Sensex, a benchmark for 30 top companies across diverse sectors.
- Why It’s Good: A traditional and stable ETF with exposure to blue-chip companies.
4. ICICI Prudential Nifty Low Vol 30 ETF
- Overview: Aims for lower volatility, focusing on stocks within the Nifty 100 with reduced price fluctuation.
- Why It’s Good: Ideal for risk-averse investors seeking steady returns amid market instability.
5. UTI Nifty Bank ETF
- Overview: Tracks the Nifty Bank index, targeting India’s leading banking stocks.
- Why It’s Good: Banks often show resilience due to strong fundamentals, making this ETF attractive for those bullish on financials.
6. Motilal Oswal Nasdaq 100 ETF
- Overview: Provides exposure to the U.S. Nasdaq 100 index, which is tech-heavy.
- Why It’s Good: Diversifies portfolios with international tech leaders, including Apple, Microsoft, and Amazon.
7. Mirae Asset NYSE FANG+ ETF
- Overview: Tracks the FANG+ index, offering exposure to top tech and growth stocks globally.
- Why It’s Good: Allows investors to tap into major tech players without direct stock investment.
8. Aditya Birla Sun Life Nifty 200 Quality 30 ETF
- Overview: Focuses on high-quality, fundamentally sound companies within the Nifty 200.
- Why It’s Good: Combines growth potential with a quality-focused strategy that can weather market downturns.
9. Quantum Nifty 50 ETF
- Overview: A straightforward Nifty 50 tracking ETF from Quantum.
- Why It’s Good: Offers a low-cost, passive investment option with exposure to India’s large-cap market.
10. ICICI Prudential IT ETF
- Overview: Exclusively targets the Nifty IT sector, including leading Indian IT firms.
- Why It’s Good: The IT sector remains robust even during economic slowdowns, making this ETF resilient.
11. Kotak PSU Bank ETF
- Overview: A PSU bank-focused ETF, covering leading government banks.
- Why It’s Good: PSUs often benefit from government support, adding stability during periods of uncertainty.
12. DSP Nifty Midcap 150 Quality 50 ETF
- Overview: Concentrates on mid-cap companies with high-quality metrics.
- Why It’s Good: Captures growth potential from mid-caps, while focusing on quality to manage risk.
13. Invesco India Gold ETF
- Overview: Tracks the domestic gold price, offering a hedge against equity market volatility.
- Why It’s Good: Gold is a traditional safe haven, making this ETF valuable during downturns.
14. Axis Healthcare ETF
- Overview: Provides exposure to India’s healthcare sector, including top pharma and healthcare companies.
- Why It’s Good: Healthcare is a defensive sector, often stable even in adverse economic conditions.
15. Mirae Asset Emerging Bluechip ETF
- Overview: Focuses on a combination of large and mid-cap stocks.
- Why It’s Good: Offers a balanced approach with exposure to stable large-caps and growth-oriented mid-caps.
Why Consider ETFs Amid Nifty’s Decline?
ETFs offer multiple benefits during a market downturn:
- Diversification: ETFs invest across various sectors and stocks, spreading risk.
- Lower Fees: Compared to actively managed funds, ETFs generally have lower expense ratios.
- Liquidity: Many ETFs are easily tradable, providing investors with flexibility in a volatile market.
- Sector Targeting: Choose ETFs based on promising sectors, like tech or healthcare, to avoid sectors hit hardest by downturns.
Key Considerations for Investors
- Expense Ratio: Lower expense ratios help preserve returns.
- Liquidity: Highly liquid ETFs ensure easier buying/selling at market prices.
- Portfolio Fit: Consider how each ETF complements your existing portfolio, especially during a downturn.
As Nifty trends downward, these ETFs offer valuable options for a diversified and resilient portfolio. Always review your risk tolerance and consult with a financial advisor to ensure these ETFs align with your investment goals.