Best Debt ETFs in India in August 2025 Based on 5yr CAGR

Debt Exchange-Traded Funds (ETFs) are investment products that track debt instruments such as government securities, corporate bonds, or money market instruments. They are designed to provide investors with exposure to fixed-income assets in a transparent and cost-effective manner. Check the best debt ETFs in August 2025, based on the 5yr CAGR.

Best Debt ETFs in August 2025 – 5yr CAGR Basis

Note: The best debt ETFs mentioned above are sorted based on the 5y CAGR as of August 19, 2025.

Overview of the Best Debt ETFs in August 2025

1. BHARAT Bond ETF-April 2030-Growth

An open-ended target maturity Exchange Traded Fund that invests in AAA-rated public sector bonds, maturing in April 2030. It seeks to provide predictable returns through government-backed debt.

Key Metrics 

• Alpha: 6.93
• NAV: ₹1,528.09 (As of August 18, 2025)

2. BHARAT Bond ETF-April 2031-Growth

A debt-based Exchange Traded Fund investing in AAA-rated bonds from government-owned entities with maturity aligned to April 2031. NIFTY BHARAT Bond Index - April 2031 is the benchmark.

Key Metrics

• Alpha: 3.15
• NAV: ₹1,367.817 (As of August 18, 2025)

3. LIC MF Nifty 8-13 yr G-Sec ETF

An ETF that tracks the Nifty 8-13 year G-Sec Index, offering exposure to sovereign securities in the medium-to-long duration category.

Key Metrics

• Alpha: 2.95
• NAV: ₹28.235 (As of August 18, 2025)

4. Nippon IN ETF Nifty 8-13 yr G-Sec Long Term Gilt

This ETF mirrors the Nifty 8-13 year G-Sec Index by investing in long-term government securities.

Key Metrics

• Alpha: 4.41
• NAV: ₹28.685 (As of August 18, 2025)

Benefits of Investing in Debt ETFs

• Diversification: A single Debt ETF holds a basket of bonds, reducing the impact of risk from any one issuer.
• Liquidity & Transparency: Listed on stock exchanges, they can be bought and sold like shares, with real-time price visibility.
• Lower Costs: Since most Debt ETFs are passively managed, their expense ratios are generally lower than actively managed debt funds.
• Predictability: Many debt ETFs track government bonds.
• Accessibility: Small-ticket investors can participate without needing large capital.

Also Read: Best Gold ETFs in India in August 2025 Based on 5yr CAGR!

Conclusion

Debt ETFs can be an option for investors looking to access fixed-income securities in a cost-efficient and transparent way. Depending on their financial goals and risk tolerance, investors may include these ETFs in a diversified portfolio to balance returns, manage risk, and gain exposure to the stability of debt instruments.

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 are subject to market risks, read all scheme-related documents carefully.