Where to Buy ETFs in India? Zerodha Makes It Simple in 2025

Where to Buy ETFs in India? Zerodha Makes It Simple

Exchange-traded funds (ETFs) have gained immense popularity among Indian investors for their simplicity, cost-efficiency, and diversification benefits. Whether a beginner or a seasoned investor, ETFs can be a great way to grow your wealth over time. One of India’s most popular platforms for buying ETFs is Zerodha, a leading brokerage firm known for its user-friendly interface and competitive pricing. This blog will guide you on how to buy ETFs in India using Zerodha and why it’s a preferred choice for investors.

What are ETFs? A Quick Overview

Before diving into buying ETFs on Zerodha, let’s understand what ETFs are. ETFs are investment funds traded on stock exchanges, much like stocks. They are designed to track the performance of a specific index, sector, commodity, or asset class. For instance:

Index ETFs: Track popular indices like NIFTY 50 or Sensex.
Sector ETFs: Focus on specific industries like IT, Banking and healthcare.
Commodity ETFs: Invest in commodities such as gold or silver.

ETFs’ key benefits include diversification, cost-efficiency, and liquidity, making them an excellent choice for long-term and short-term investors.

Why Choose Zerodha to Buy ETFs?

Zerodha has revolutionized how Indians invest, providing a seamless platform for trading and investing. Here’s why Zerodha is an ideal choice for buying ETFs:

1. User-Friendly Platform:

Zerodha’s trading platforms, kite (web-based and mobile app), and Coin ( mutual funds) are intuitive and easy to navigate, even for beginners.

2. Low Brokerage Fees:

Zerodha offers one of the lowest brokerage charges in India. Equity delivery trades, including ETF purchases, are free of brokerages.

3. Access to a Wide Range of ETFs:

Zerodha provides access to numerous ETFs across asset classes, indices, and sectors.

4. Transparency:

The platform provides detailed analytics, charts, and insights to help investors make informed decisions.

5. Integrated Demat and Trading Account

Zerodha integrates trading and demat services, making buying, selling, and holding ETFs easy.

Step-to-step Guide to Buying ETFs on Zerodha

Step 1: Open a Zerodha Account

If you don’t already have a Zerodha account, visit Zerodha’s website and sign up. For verification, you’ll need to provide essential documents like your PAN, Aadhar, and bank details.

Complete the e-KYC process, which is quick and paperless.

Step 2: Fund Your Trading Account

Ensure you have sufficient funds to purchase the desired ETFs.

Step 3: Log In to the Kite Platform

Kite is Zerodha’s flagship trading platform available as a web application and mobile app.
Use your credentials to log in and access your dashboard.

Step 4: Search for ETFs

Use the search bar in kite to find the ETF you wish to buy. For example, type “NIFTYBEES” for the NIFTY 50 ETF or “GOLDBEES” for a gold ETF.

Click on the ETF to view detailed information, including its price, performance, and historical data.

Step 5: Place an Order

Once you’ve selected the ETF, click the “Buy” button.
Enter the quantity you wish to purchase and choose between a market or limit orders.
Review your order details and confirm the transactions.

Step 6: Monitor Your Investment

After buying, you can track your ETFs under the “Holdings” tab on Kite.

Use Zerodha’s charts and analytics to monitor the performance of your ETFs and make informed decisions about holding or selling.

Top ETFs to Consider on Zerodha

If you’re unsure which ETFs to buy, here are some popular options available on Zerodha:

1. NIFTYBEES (NIFTY 50 ETF):

Tracks the NIFTY 50 Index, providing exposure to the top 50 companies in India.

2. BANKBEES (Banking Sector ETF):

It focuses on the banking sector and tracks the NIFTY Bank Index.

3. GOLDBEES (Gold ETF):

Invests in physical gold, making it a great choice for portfolio diversification.

4. ITBEES (IT Sector ETF):

Provides exposure to leading IT Companies in India.

5. MOFNIFTY (Motilal Oswal NIFTY 500 ETF):

Tracks the NIFTY 500 Index, offering broad market coverage.

Benefits of Buying ETFs on Zerodha

1. Low Costs:

Zerodha’s zero brokerage on delivery trades ensures cost-efficient ETF investments.

2. Real-Time Trading

Buying and selling ETFs instantly during market hours gives you greater control over your investments.

3. Research Tools:

Zerodha’s platform provides charts, market news, and historical data to aid investment decisions.

4. Portfolio Diversification:

Choose from various ETFs to diversify your investments across sectors and asset classes.

5. Seamless Integration:

Zerodha’s integration of trading and demat accounts simplifies the investment process.

Things to Keep in Mind While Buying ETFs

1. Liquidity:

Some ETFs may have low trading volumes, making buying or selling large quantities harder. Check the liquidity before investing.

2. Expense Ratio:

Although ETFs are cost-effective, their expense ratios impact returns. Compare expense ratios across ETFs to find the best value.

3. Market Timing:

ETFs trade like stocks, so their prices fluctuate throughout the day. Monitor market conditions for favourable entry points.

4. Investment Goals:

Align your ETF choices with your financial goals, whether it’s growth, income, or risk diversification.

5. Tracking Error:

ETFs may not perfectly replicate their underlying index due to tracking errors. Evaluate this metric before investing.

Zerodha has made investing in ETFs simple, affordable, and accessible for Indian investors. With its user-friendly interface, low costs, and robust research tools, Zerodha is an excellent platform to begin or expand your ETF investment journey. Whether you’re looking to invest in the NIFTY 50, gold, or sector-specific ETFs, Zerodha offers a wide range of options to suit your financial goals.

Following the step-by-step guide, you can seamlessly buy ETFs and build a diversified portfolio. Remember to assess your investment objectives, monitor your holdings, and leverage Zerodha’s tools to make informed decisions. Start investing in ETFs today with Zerodha and take a step toward achieving your long-term financial goals.