Top Energy ETFs in India - Best Funds to Invest

Top Energy ETFs in India

1. ICICI Prudential Nifty Oil & Gas ETF

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

The ICICI Prudential Nifty Oil & Gas ETF is one of the most popular energy ETFs in India, thanks to its wide exposure across several major energy companies. This ETF tracks the Nifty Energy Index, so you’ll be investing in leading energy players like Reliance, ONGC, BPCL, IOC, and GAIL. These companies make up a big part of the Indian energy sector, giving this ETF a solid foundation.

ICICI Prudential Nifty Oil & Gas ETF - Fund Overview

• Category: Index Funds/ETFs
• Fund House: ICICI Prudential Mutual Fund
• NAV: ₹11.2767 (-1.96%) (as of 08th November, 2024)
• Crisil Rating: Not Rated
• Fund Size: ₹123.93 Crores (0.01% of the category's total investments)
• Expense Ratio: 0.4% (compared to a 0.5% category average)
• Risk-O-Meter: Very High

Why it’s worth considering: If you’re looking for a straightforward, low-cost way to get into the Indian energy market, this ETF could be a good fit. It has shown stable returns over the years and offers a balanced portfolio of energy giants.

2. CPSE ETF – Nippon India Mutual Funds

Nippon India’s CPSE ETF is another reliable choice for anyone wanting exposure to India’s energy landscape. Like the ICICI Prudential ETF, it also tracks the Nifty Energy Index. But each fund manager brings a unique approach, so even with similar stocks, there can be performance differences. Nippon India’s CPSE ETF includes holdings in established companies such as NTPC, NHPC, Coal India, Oil India, and other heavyweights.

CPSE ETF - Fund Overview

• Category: Index Funds/ETFs
• Fund House: Nippon India Mutual Fund
• NAV: ₹91.9017 (-1.21%) (as of 08th November, 2024)
• Crisil Rating: Not Rated
• Fund Size: ₹39,988.57 Crores (4.07% of the category's total investments)
• Expense Ratio: 0.07% (lower than the 0.5% category average)
• Risk-O-Meter: Very High

Why it’s worth considering: This ETF has a strong focus on traditional energy companies, so if you’re a supporter of the tried-and-true giants of oil, power, and gas, it’s a good option to consider.

3. Aditya Birla Sun Life Nifty 50 ETF

Though not strictly an energy ETF, this ETF has a decent portion of its portfolio invested in energy companies from the Nifty 50 index. It includes giants like Reliance Industries, which is diversifying into green energy alongside its traditional oil and gas. While it’s not entirely focused on energy, this ETF can be a great way to get energy exposure, if you want the safety of broader diversification.

Aditya Birla Sun Life Nifty 50 ETF Overview

• Category: Index Funds/ETFs
• Fund House: Aditya Birla Mutual Fund

Why it’s worth considering: For those who want a taste of energy without committing fully to the sector, this ETF gives you energy exposure without the sector-specific volatility.

Benefits of Investing in Energy ETFs

• Diversification: By investing in an energy ETF, you’re not putting all your money into one single company. That means if one company faces issues, you’re less likely to feel a huge impact.
• Ease of Access: ETFs can be bought and sold just like stocks, giving you the flexibility to manage your investments as you wish.
• Lower Costs: Since most ETFs are passively managed (they track an index), they tend to have lower fees compared to actively managed funds.
• Potential for Growth: With India pushing for energy reform, renewable energy projects, and infrastructure improvements, there’s potential for growth in the sector over the coming years.

Conclusion

With increasing demand for sustainable energy and the ongoing modernization of traditional energy infrastructure, this sector has the potential for steady growth. But remember, like any investment, energy ETFs come with risks—especially as the world shifts more toward renewables. If you’re someone who sees the energy sector’s importance and potential, investing in an energy ETF might just be the power boost your portfolio needs!