Top ETFS in India for 2022. 10 best etfs for 2022

I prefer index funds over ETFs. There are plenty of reasons for the same. I will share these in a blog post coming soon.

Click here if you want to understand what an ETF is. I have explained it in really simple terms. (You could still open it in a new tab and come back)

Click here if you want to why I prefer index funds over mutual funds.

In this post, I am not talking about what type of funds I prefer. ETFs are good in their own ways and me having a bias does not reduce their value in any way.

Before talking about my top picks, I would like to make it clear that buy ETFs only if you are a long term investor. For all my short-term investor brothers, the best strategy for investing in ETFs is to have a bunch of ETFs listed in your watchlist and wait for one to have a huge dip. Trade on that ETF with or without leverage. There is honestly no other way to make profits in the short term on ETFs.

I suggest buy and forget for at least 5 years, else you might get tempted to sell or buy at the wrong time or might use those funds for risker equity investments. With all that said. Here are my top picks for ETFs in 2022.

On upstox, you can even get a leverage of 5 times while trading on these ETF's. (I don't know about the other brokers). 

If you want to make a Upstox account, you could click here. I have been using upstox for around 2 years, there have been a couple of ups and downs, but the problem is always sorted and that's why I prefer upstox. If you want a detailed blog on which platform is good, let me know in the comments section.

This ETF is designed to mimic the price change in physical gold. There is also high volume on this stock, which is definitely a plus point as your sell orders will get executed. This is a really good ETF managed by Nippon. When there is a blood bath in the stock market, the yellow metal always comes to the rescue. Gold is famous for being a hedge against fall in markets as it always tends to increase during the bear market. The bears love gold. If you speculate the market going down, this ETF is your golden arrow. 
Gold is in, while cannabis inspires caution: survey | Investment Executive
Nifty BeEs is an ETF that replicates the S&P CNX Nifty Index. Trading on this ETF is like trading on the Nifty Index. This index has good volume, making selling or buying possible easily. Since it is an it is a combination of a share and mutual fund and you can buy or short sell this ETF with ease.

ICICISENSX or ICICI Prudential SENSEX Etf is a fund by ICICI Prudential. This fund includes all the large capital Indian equity shares. Anyone looking to buy blue-chip stocks, well this ETF is just for you! The problem I noticed with this fund is the lack of volume. Hence, in some situations, you may not have your order executed whenever you want. This may lead to a loss of the opportunity to sell or buy. (This used to be a drawback for most ETFs, however, Nippon ETFs tend you see good volumes. This is ICICI.) 

This honestly, is one of my favourite ETFs. (Even though I prefer index funds.) JUNIOR BeEs ETF aims to replicate the Next Nifty 50 Index. This includes the stocks from 51-100 top capital companies in India. These companies tend to have a higher growth rate, as they are usually undervalued and have insane volumes daily. However, this comes with a greater risk aspect as well. Higher risk and a longer wait time is not everyone's cup of tea. 

5. MON100
MON100 or Motilal OS NASDAQ100 ETF. The NASDAQ is an index similar to that of SENSEX or NIFTY. It is the index that includes the top 100 companies having the highest trading volume and being the largest companies in the states. The MON100 aims at replicating this index. This index has amazing volume daily and your orders will never have to wait for a buyer or seller.

Nippon India ETF Hang Seng BeES is an ETF which replicates the returns of the Hang Seng Index in Hong Kong. There be no guarantee provided for the same. In the past 1year, 2year and 3-year performance have shown it to move in the same direction. The returns however are a little less. (Tend to have a 1% difference)

Nippon India ETF dividend opportunities or NETFDIVOPP is an ETF that has various high dividend companies that have large market capitalization. The dividend earned is contributed to the price and the share price increases accordingly. There is no dividend given for owning this ETF. However, the dividend is always taken into account.  
  • 8.   INFRABEES
Recommendations 8,9 and 10 are all sector-based ETFs. These ETFs have a very narrow scope i.e limited to a certain industry whereas the rest have large-cap companies from different sectors. This comes with a major drawback as the fund managers are limited to a very limited area. They might expect a better return in other companies however, they will be forced to invest in a company belonging to the sector for which the ETF is bought. 

I still recommend these stocks that belong to a certain industry as the risk and returns have a beautiful balance. You can get amazing gains from a particular industry but have to be patient. 

An ETF can only show its true value when you have patience. Remember what Warren Buffett said
The stock market is a device for transferring money from the impatient to the patient.

Why have I recommended so many ETFs by Nippon?
It's simply because these ETFs have the highest volume and the other ETFs have barely any value. 

Why is volume such a big deal? 
Volume is really important as it ensures that 
A. You can buy the ETF at any time. (When you feel the price is just right)Usually, it's not that big of a deal as it's for a long period anyways.
B. You can sell your ETFs whenever you wish. Again, it's not big of a deal as ETFs are bought for the long term. But an investor you don't want to miss any price opportunities.