Top 5 ETFs: How ₹1 Lakh Investment Grew to ₹1.77 Lakh in a Year Despite Recent Market Fall

Unlike traditional mutual funds, which have high equity exposure but cannot be traded directly on the stock exchange, Exchange-Traded Funds (ETFs) offer a unique advantage. They can track indices, commodities, or asset benchmarks and are bought and sold on stock exchanges like shares.

Investors must have a demat account to trade ETFs. They also enjoy a lower expense ratio compared to actively managed mutual funds. However, ETFs can only be bought or sold during market hours.

This article explores the top 5 ETFs that generated the highest annualised returns over the past year. Let’s see how an investment of ₹1 lakh in each ETF performed during this period.

1️. Mirae Asset Hang Seng TECH ETF

• 1-Year Return: 77.29%
• Assets Under Management (AUM): ₹339.18 crore
• Net Asset Value (NAV) (as of Feb 20, 2025): ₹23.55
• Benchmark: Hang Seng TECH Index TR INR
• Expense Ratio: 0.57%
• Launch Date: December 2021
• Trading Volume: 51,67,153
• Investment Growth: ₹1,00,000 to ₹1,77,286

2️. Mirae Asset NYSE FANG+ ETF

• 1-Year Return: 48.89%
• AUM: ₹18,371.55 crore
• NAV (as of Feb 20, 2025): ₹117.8268
• Benchmark: NYSE FANG+ TR USD
• Expense Ratio: 0.66%
• Launch Date: April 2021
• Trading Volume: 12,28,629
• Investment Growth: ₹1,00,000 to ₹1,48,888

3️. UTI Gold Exchange Traded Scheme

• 1-Year Return: 39.44%
• AUM: ₹1,598.78 crore
• Unit Price (as of Feb 20, 2025): ₹73.6799
• Benchmark: Domestic gold prices
• Expense Ratio: N/A
• Launch Date: April 2007
• Trading Volume: 2,65,174
• Investment Growth: ₹1,00,000 to ₹1,39,436

4️. Kotak Gold Exchange Traded Scheme

• 1-Year Return: 37.69%
• AUM: ₹6,654.06 crore
• NAV (as of Feb 20, 2025): ₹72.8476
• Benchmark: Domestic gold prices
• Expense Ratio: 0.55%
• Launch Date: July 2007
• Turnover Ratio: 13.07%
• Investment Growth: ₹1,00,000 to ₹1,37,687

5️. IDBI Gold ETF

• 1-Year Return: 38.86%
• AUM: ₹188.77 crore
• Unit Price (as of Feb 20, 2025): ₹7878.3312
• Benchmark: Domestic gold prices
• Expense Ratio: 0.35%
• Launch Date: November 2011
• Trading Volume: 3,858
• Investment Growth: ₹1,00,000 to ₹1,38,856

Conclusion

ETFs have emerged as a compelling alternative for investors seeking exposure to equity indices, commodities, or asset benchmarks while maintaining liquidity. The top-performing ETFs over the past year have demonstrated resilience, particularly those tracking technology stocks and gold prices.

Although past performance is not indicative of future returns, ETFs remain an efficient investment vehicle with lower expense ratios and market credibility. Understanding their performance trends can help investors make informed decisions.

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.