Best Debt ETFs in India for December 2025: BHARAT Bond ETF, ICICI Pru Nifty G-Sec ETF and More

Debt ETFs have gained traction among investors seeking stable returns and low-cost exposure to government securities. These funds track fixed-income indices and offer liquidity, transparency, and tax efficiency compared to traditional debt instruments.

Top Debt ETFs by 1-Year Return

ICICI Pru Nifty 5 Yr Benchmark G-Sec ETF tops the list with a 1-year return of 9.78%, followed closely by BHARAT Bond ETFs, which combine strong performance with ultra-low expense ratios.

Leading Debt ETFs by Market Capitalisation

BHARAT Bond ETFs dominate in terms of market cap, reflecting strong investor confidence and preference for government-backed securities.

Why Consider Debt ETFs?

• Low Cost: Expense ratios as low as 0.01% make them cost-efficient.
• Liquidity: Easy to buy and sell on exchanges compared to traditional bonds.
• Transparency: Portfolio mirrors the underlying index, ensuring clarity.
• Tax Efficiency: Favourable taxation compared to fixed deposits for long-term investors.

Conclusion

For December 2025, ICICI Pru Nifty 5 Yr Benchmark G-Sec ETF leads on 1-year returns, while BHARAT Bond ETFs dominate in terms of size and cost efficiency. Investors seeking stability and predictable returns can consider these ETFs as part of a diversified portfolio, keeping in mind their investment horizon and risk profile.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.