Investing in ETFs: The Best Platforms in India

Exchange-Traded Funds (ETFs) have gained immense popularity among Indian investors for their simplicity, diversification, and cost-effectiveness. As a hybrid between mutual funds and stocks, ETFs are an excellent choice for those looking to build a diversified portfolio without active management. However, the key to successful ETF investing lies in choosing the right platform.

In this blog, we will explore the best platforms for investing in ETFs in India, factors to consider when choosing a platform, and a step-by-step guide to getting started.

Why Invest in ETFs?

Before diving into the platforms, let’s understand why ETFs are an attractive option for Indian investors:

1. Diversification: ETFs provide exposure to a basket of securities, reducing the risk of investing in a single stock.

2. Cost-Effective: With lower expense ratios compared to mutual funds, ETFs are a cost-efficient investment option.

3. Liquidity: ETFs can be bought and sold like stocks on exchanges, offering high liquidity.

4. Tax Efficiency: ETFs are generally more tax-efficient than mutual funds.

5. Variety: From equity ETFs and sector-specific ETFs, investors have numerous options.

Top Platforms for Investing in ETFs in India

Here’s a curated list of the best platforms for buying and managing ETFs in India:

1. Zerodha

Zerodha, India’s largest stockbroker, is a favourite among investors for its user-friendly interface and low-cost structure.

Features:

Access to a wide range of ETFs, including equity, gold, and bond ETFs.

Seamless integration with the Zerodha Kite app for easy trading.

Low brokerage charges (₹20 per trade or 0.03%, whichever is lower.)

Why Choose Zerodha

Ideal for both beginners and experienced investors who want a comprehensive yet affordable trading experience.

2. Groww

Groww is a fast-growing investment platform known for its simplicity and accessibility.

Features:

Easy account setup with a paperless KYC process.

Offers a wide variety of ETFs along with mutual funds and stocks.

No account maintenance charges for the first year.

Why Choose Groww:

Perfect for tech-savvy beginners looking to invest in ETFs with a straightforward and mobile-friendly platform.

3. Upstox

Upstox is another popular discount brokerage offering competitive pricing and a feature-rich app.

Features:

Access to all ETFs listed on the NSE and BSE.

Advanced tools for tracking and analysing ETFs.

Low brokerage fees and free delivery trades.

Why Choose Upstox:

Best suited for investors who want advanced trading features and cost-effective services.

4. ICICI Direct

For investors who prefer traditional brokerages with comprehensive services, ICICI Direct is a reliable choice.

Features:

Offers a wide range of ETFs, from gold to sector-specific options.

Integrated with other banking and investment services.

Robust research tools for informed decision-making.

Why Choose ICICI Direct:

Ideal for those who want to combine their banking and investment needs on a single platform.

5. HDFC Securities

HDFC Securities is a trusted name in the Indian investment landscape, offering a wide array of financial products.

Features:

Access to ETFs across multiple sectors and asset classes.

Expert research reports to guide your investments.

User-friendly mobile app and web interface.

Why Choose HDFC Securities:

Recommended for investors seeking a secure and well-rounded platform backed by a reputed financial institution.

6. Paytm Money

Paytm Money is a growing platform that offers ETFs, stocks, and mutual funds with a strong focus on affordability.

Features:

Zero account opening charges.

Competitive brokerage fees starting ₹15 per trade.

Integration with the Paytm ecosystem for added convenience.

Why Choose Paytm Money:

Ideal for small investors and those looking for a low-cost platform to start their ETF money.

7. Angel One (Formerly Angel Brokering)

Angel One combines traditional brokerage services with modern technology to offer a seamless trading experience.

Features:

Access to a diverse range of ETFs across sectors and asset classes.

AI-driven tools for portfolio management.

Affordable brokerage charges.

Why Choose Angel One:

Great for investors who value advanced technology and professional recommendations.

Factors to Consider When Choosing a Platform for ETFs

When selecting a platform to invest in ETFs, consider these essential factors:

1. Ease of Use: Look for platforms with intuitive interfaces and smooth navigation, especially if you’re beginner.

2. Fees and Charges: Compare brokerage fees, account maintenance charges, and transaction costs to maximize returns.

3. Variety of ETFs: Ensure the platform offers a broad selection of ETFs across different asset classes.

4. Customer Support: Reliable and accessible customer support can make your investment journey hassle-free.

5. Additional Features: Look for platforms offering research tools, analytics, and real-time data for better decision-making.

Popular Types of ETFs Available in India

To make the blog more comprehensive, include details about the common types of ETFs offered on these platforms:

1. Equity ETFs: Tracks indices like NIFTY 50, SENSEX, or thematic sectors (e.g. IT, FMCG)

2. Gold ETFs: Invest in physical gold and are popular for wealth preservation.

3. Bond ETFs: Provides exposure to government or corporate bonds for stable income.

4. International ETFs: Tracks global markets like the NASDAQ or S&P 500.

5. Thematic ETFs: Focus on specific industries, like renewable energy or healthcare.

The platform you choose for ETF investing plays a critical role in your overall experience and returns. Factors like low fees, ease of use, and access to diverse ETFs are essential for maximizing your investment potential.

With platforms like Zerodha, Groww, Upstox, and ICICI Direct, Indian investors have access to a wide range of tools and resources to make ETF investing seamless and profitable. By choosing the right platform and strategy, you can harness the power of ETFs to achieve your financial goals with ease.
Investing in ETFs is an excellent way to achieve diversification, minimize risk, and grow wealth over time. Platforms like Zerodha, Groww, Upstox, ICICI Direct, and Paytm Money make ETF investing accessible and affordable for Indian investors.

When choosing a platform, prioritize features like ease of use, low fees, and a wide variety of ETFs. With the right platform and a clear strategy, ETFs can become a cornerstone of your financial portfolio.