Investing in debt ETFs (Exchange-Traded Funds) has become an increasingly popular option for individuals seeking steady income and portfolio diversification. Debt ETFs typically invest in bonds or other fixed-income securities, providing exposure to government, corporate, or municipal debt without the need to buy individual bonds.
They offer the benefits of liquidity, lower costs, and professional management, making them an attractive choice for investors looking to balance risk and return in uncertain markets. In this read, we’ll take a closer look at some of the best Debt ETFs in India for January 2026.
| Name | Market Cap (₹ Crore) | CAGR 5Y (%) |
| BHARAT Bond ETF-April 2030-Growth | 8,453.60 | 6.59 |
| Nippon IN ETF Nifty 8-13 yr G-Sec Long Term Gilt | 2,705.77 | 5.36 |
| BHARAT Bond ETF-April 2023 | 8,369.70 | 2.06 |
| Nippon India ETF Nifty 1D Rate Liquid BeES | 2,580.84 | 0.00 |
| Bharat Bond ETF - April 2032 | 8,326.58 | - |
Note: The above-mentioned schemes have been selected based on 5Y CAGR as of Jan 2, 2026
Also Read: Best Gold ETFs in India for January 2026: SBI Gold ETF, HDFC Gold ETF, and More
Debt ETFs can serve as a reliable tool for investors aiming to generate income and reduce overall portfolio volatility. While they carry interest rate and credit risks, their diversification, transparency, and ease of trading make them a flexible option compared to directly holding individual bonds.
By carefully selecting debt ETFs that align with their investment goals and risk tolerance, investors can enhance income stability and strengthen long-term financial planning.
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.
Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 2, 2026, 2:21 PM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
