Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
3 India ETFs to Watch in 2024
Ruby Layram
22nd Jul 2024
Investing in India ETFs could be a great way to diversify your portfolio with overseas stocks, especially as the country’s economy continues to grow.
India stands as one of the most promising emerging markets after last month’s general election, which was the biggest that the world has ever seen.
Since the election, it seems like the country is poised for economic growth, steady inflation and stability – all good signs for investors!
Watching the right corners of the market can open doors to lucrative opportunities. In this post, I will share why I’m particularly interested in India ETFs and explore three specific ones that are worth considering in 2024.
Why am I Considering India ETFs?
India is one of the fastest-growing economies in the world, and it has a youthful, dynamic population that’s driving innovation and growth across various sectors.
From technology and healthcare to finance and consumer goods, Indian companies are making waves globally.
By investing in India ETFs, you’re essentially getting a slice of this action without having to pick individual stocks.
Moreover, with the global economy showing signs of volatility, diversifying your portfolio with investments in emerging markets like India might be a good move!
This way, you’re not putting all your eggs in one basket. Instead, you spread your money across different assets which could reduce the impact of a loss.
Now, let’s look at three India ETFs that I think are particularly promising for 2024.
3 India ETFs to Consider This Year
There are many different ways to invest in India and other emerging markets. However, I personally like ETFs because they offer low fees and make it easy to diversify.
Here is an overview of 3 ETFs that are on my watch list this summer!
1. Nifty 50
The Nifty 50 ETF is a fantastic way to tap into the top 50 companies listed on the National Stock Exchange of India.
These companies are leaders in their industries, ranging from IT giants like Infosys to financial powerhouses like HDFC Bank.
What makes the Nifty 50 appealing is its diversity and representation of the broader Indian economy.
It’s a bit like the S&P 500 in the United States, giving you a broad exposure to India’s market leaders.
Plus, the historical performance of the Nifty 50 has been robust, reflecting India’s economic resilience and growth potential.
2. MSCI India
The MSCI India ETF tracks the MSCI India Index, which includes large and mid-cap segments of the Indian market.
This ETF gives you exposure to around 85% of the Indian stock market, making it a comprehensive choice for those looking to invest in India.
One of the standout features of the MSCI India ETF is its diversity across different sectors. It includes a mix of technology, finance, consumer goods, healthcare, and other industries.
This mix ensures that you’re not overly exposed to any single sector, reducing risk and increasing the potential for returns.
3. FTSE India 30/18
The FTSE India 30/18 ETF is another solid option, tracking the FTSE India 30/18 Capped Index.
This index caps the weights of the largest companies. This basically means that the index gives more weight to companies with high market capitalization.
This limits over-concentration and also reduces volatility because large-cap stocks tend to be less volatile.
How to Buy India ETFs Online
If, like me, you want to diversify your portfolio with India ETFs, you’re in luck!
Buying India ETFs online is straightforward, and you don’t need to be a financial wizard to get started. Here are is an overview of the basic steps involved.
1. Choose a Brokerage
Start by selecting an online brokerage that offers access to international markets. Look for platforms with low fees and a user-friendly interface.
Some popular options include VanEck, Charles Schwab, and Interactive Brokers.
2. Open an Account
Once you’ve chosen a brokerage, you’ll need to open an account.
This process typically involves providing some personal information, verifying your identity, and linking your bank account.
3. Research and Select ETFs
Use the brokerage’s research tools to find the India ETFs you’re interested in.
You can search by name (like Nifty 50, MSCI India, or FTSE India 30/18) and review their performance, fees, and holdings.
4. Place an Order
When you’re ready to buy, you can place an order through the brokerage’s trading platform.
You’ll have the option to choose the number of shares and set your order type (market order, limit order, etc.).
Spend time considering your options and making a decision that aligns with your investing strategy.
5. Monitor Your Investment
After purchasing, it’s important to keep an eye on your investment.
Use the brokerage’s tools to track performance and make informed decisions about when to buy or sell.
We have a fantastic guide about how to spring clean your portfolio that covers how to monitor performance and make adjustments.
Investing in India ETFs can be a fantastic way to diversify your portfolio and tap into one of the world’s fastest-growing economies.
By understanding the unique features of each ETF and following a simple process to purchase them online, you can make informed investment decisions that align with your financial goals.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
Thank you for this article. I found it informative and useful.