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List of Best Capital Markets ETFs in India 2026

Capital markets ETFs are a segment of exchange-traded funds that track indices composed of financial infrastructure and services companies forming the backbone of India’s capital markets. For example, the Motilal Oswal Nifty Capital Market ETF, which tracks the Nifty Capital Markets Index, TRI, had an assets under management (AUM) of around ₹109 cr as of January 2026 and has delivered strong returns since its March 2025 inception with a CAGR of approximately 64 %.

Top Capital Markets ETFs in 2026

Capital Markets ETF Stock Screener

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NameStocks (3)↓↓Sub-SectorSub-Sector↓↓Market CapMarket Cap↓↓Close PriceClose Price↓↓PE RatioPE Ratio↓↓1D Return1D Return↓↓1M Return1M Return↓↓6M Return6M Return↓↓1Y Return1Y Return↓↓PB RatioPB Ratio↓↓Return on EquityReturn on Equity↓↓ROCEROCE↓↓Dividend YieldDiv Yield↓↓Debt to EquityDebt to Equity↓↓Volatility vs NiftyVolatility vs Nifty↓
1.Edelweiss BSE Capital Markets & Insurance ETFECAPINSUREEquityEquity12.9512.9524.1624.16---1.02-1.02-0.86-0.865.505.5022.7022.70----------1.651.65
2.Motilal Oswal Nifty Capital Market ETFMOCAPITALEquityEquity8.338.3347.8747.87---0.85-0.852.592.599.149.1462.9962.99----------2.182.18
3.Groww Nifty Capital Markets ETFGROWWCAPMEquityEquity6.296.299.999.99---1.77-1.770.000.001.321.321.321.32----------2.452.45
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Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Selection criteria: Based on publicly available information | Sorted by market capitalisation from highest to lowest.

Overview of Top Capital Markets ETFs in India

Motilal Oswal Nifty Capital Market ETF

Nippon India ETF Capital Market Opportunities 50 tracks the Nifty Capital Market Opportunities 50 Index, investing in companies with high Capital Market yields from the Nifty 100 and Nifty Midcap 50 universes. The fund provides exposure to Capital Market-paying stocks across various sectors and market capitalisations listed on Indian exchanges.

Groww Nifty Capital Markets ETF

Mirae Asset BSE 500 Capital Market Leaders 50 ETF follows the BSE 500 Capital Market Leaders 50 Index, focusing on companies with consistent Capital Market payment track records from the BSE 500 universe. The exchange-traded fund offers diversified exposure to Capital Market-yielding stocks across different sectors and company sizes.

Edelweiss BSE Capital Markets & Insurance ETF

Mirae Asset BSE 500 Capital Market Leaders 50 ETF follows the BSE 500 Capital Market Leaders 50 Index, focusing on companies with consistent Capital Market payment track records from the BSE 500 universe. The exchange-traded fund offers diversified exposure to Capital Market-yielding stocks across different sectors and company sizes.

What are Capital Markets ETFs?

Capital markets ETFs are exchange-traded funds that track indices made up of companies operating across the core segments of India’s capital market ecosystem. These include businesses involved in stockbroking, investment banking, wealth management, asset management, exchanges, depositories, and financial market infrastructure. A capital market ETF replicates an index such as the Nifty Capital Markets Index by holding the same set of companies in similar proportions. This structure offers a clear, rule-based view of how the broader capital markets industry performs, without requiring the selection of individual financial-services stocks.

How to Invest in Capital Markets ETFs?

Here's how you can invest in Capital Markets ETFs using Tickertape -

  1. Create an account on the Tickertape or log in if you already have one.
  2. Open Tickertape Stock Screener
  3. Filter Capital Markets ETFs screener based on various parameters such as market cap, close price, past returns and more. You can review this data to evaluate each ETF’s performance trends and determine whether they align with your investment thesis.
  4. Once you’ve decided on an ETF, you can place a buy order through your brokerage account linked to Tickertape.

You can also stay updated on alerts and announcements for your favourite stocks with Tickertape Alerts. Further, you can analyse your overall portfolio and potential red flags in it by connecting it to Tickertape. Check out detailed analysis of your portfolio now!

Features of Capital Markets ETFs in India

Exchange-Traded Structure

You can buy and sell capital market ETFs on stock exchanges throughout the trading day, just like you would with regular stocks. The price moves in real-time during market hours. This is different from mutual funds, where you only get one price at the end of each day.

Passive Index Tracking

These capital market ETFs follow major market indices—think Nifty 50, Sensex, or indices focused on specific sectors. The ETF holds the same stocks as the index it tracks, which means you get exposure to a whole basket of securities when you buy just one ETF.

Creation and Redemption Mechanism

Large financial institutions called Authorised Participants can create new ETF units or redeem existing ones. They do this by swapping large blocks of the underlying securities with the fund. This process keeps the ETF's trading price aligned with its actual Net Asset Value (NAV).

Demat Account Requirement

You'll need both a demat account and a trading account to invest in ETFs in India. That's because you hold ETF units electronically and trade them through stock exchanges.

Lower Expense Ratios

Capital market ETFs cost less to run than actively managed mutual funds. They follow a passive strategy and don't trade frequently, which keeps the expense ratios low.

Advantages of Investing in Capital Markets ETFs in India

Instant Diversification

One ETF unit gives you exposure to multiple stocks spread across different sectors or market caps (depending on which index it tracks). You spread your risk across many securities without having to pick and buy individual stocks yourself.

Cost Efficiency

ETFs combine low expense ratios with minimal transaction costs, making them an affordable way to invest. You won't pay any entry or exit loads, though your broker will charge the usual brokerage fees and STT.

Transparency

Fund houses disclose ETF holdings every single day. You can see exactly which securities you own at any time. The NAV gets calculated and published regularly while the market is open.

Liquidity

You can buy or sell ETFs during market hours at whatever the current price is. This gives you much more flexibility to get in or out of positions quickly compared to traditional mutual funds.

Tax Efficiency

When capital market ETFs are structured as equity-oriented funds, they get the same tax treatment as equity mutual funds under Indian tax laws. This means you get favourable treatment on long-term capital gains.

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Risks of Investing in Capital Markets ETFs in India

Market Risk

ETF values move up and down with the underlying index or securities they hold. When the market falls, your ETF's value falls right along with it. Since these funds passively track an index, there's no fund manager actively trying to limit your losses.

Tracking Error

Your ETF won't always match the index performance exactly. Expenses, the timing of cash flows, dividends, and rebalancing costs all create small differences. This tracking difference means you might get lower returns than the index shows.

Liquidity Risk

Some ETFs don't trade much, which creates wider gaps between the buying and selling prices (bid-ask spreads). This can make it harder and more expensive to trade at the price you want, especially with sector-specific or thematic ETFs.

Price-NAV Discrepancy

An ETF's market price doesn't always match its NAV perfectly. Supply and demand on the exchange create these gaps—sometimes the ETF trades at a premium, sometimes at a discount. If you trade frequently, these discrepancies can eat into your returns.

Concentration Risk

ETFs that track narrow indices or focus on specific sectors put more of your eggs in fewer baskets. When that particular sector or segment performs poorly, it hits your ETF's value hard because you don't have the cushion of broader diversification.

Factors to Consider Before Investing in Capital Markets ETFs

Investment Horizon

How long you plan to stay invested matters when choosing an ETF. Short-term and long-term holdings react differently to market volatility.

Underlying Index

Indices vary quite a bit in how they're put together—different sectors, different market caps, different numbers of stocks. The way an index is constructed shapes the ETF's risk-return profile.

Trading Volumes

Look at the average daily trading volume. Higher volumes mean you can buy or sell units more easily without pushing the price against yourself. They also tend to mean tighter bid-ask spreads.

Expense Ratio

Different ETFs charge different annual management fees. These differences might look small, but they add up over time and chip away at your overall returns.

Tracking Performance

Check how closely the ETF has tracked its benchmark index in the past. Consistent tracking tells you the fund management and replication strategy are working well.

Tax Implications

Your tax bill depends on how long you hold the ETF and what kind of securities it invests in. Different ETF categories face different tax treatment based on whether they're equity-oriented or debt-oriented.

Taxation on Capital Markets ETFs

Capital Markets ETFs are taxed according to the investment tenure. Separate tax rules apply to short-term and long-term gains.

Holding Period Tax Treatment
Short-Term (< 12 months ) Gains taxed at a flat rate of 20% (increased from the previous 15%).
Long-Term (> 12 months) Gains taxed at 12.5%. Exemption applies to the first ₹1.25 Lakh of long-term gains across all equity assets in a financial year.

Conclusion

Capital markets ETFs offer a structured way to follow companies that form the foundation of India’s financial market ecosystem, from brokerages and exchanges to asset managers and investment platforms. Their rule-based construction helps track how this segment responds to shifts in market activity, liquidity, and industry growth. If you want to study capital market–linked stocks or compare financial-services segments more closely, the Tickertape Stock Screener provides transparent, data-led filters that support deeper research

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Frequently Asked Questions on Capital Markets ETFs

  1. What is a Capital Market ETF?

    A Capital Market ETF is an exchange-traded fund that tracks a market index and trades like a stock. It holds a basket of securities that replicates its benchmark index, offering diversified market exposure through one tradable unit.

  2. Which capital market ETF is the best?

    Top capital market ETFs (as of 16 Jan 2026) include Motilal Oswal Nifty Capital Market ETF, Groww Nifty Capital Markets ETF, and Edelweiss BSE Capital Markets & Insurance ETF.

  3. What types of indices do Capital Market ETFs track in India?

    They track broad market indices (Nifty 50, Sensex), sectoral indices (Banking, IT, Pharma), market-cap indices (Midcap, Smallcap), thematic indices, and strategy-based indices like low volatility or dividend yield.

  4. How are capital market ETFs created?

    Authorised Participants deliver a basket of securities matching the index to the fund house and receive ETF units in return. These units are then traded on exchanges. The creation–redemption mechanism keeps ETF prices aligned with NAV.

  5. What is the role of the fund manager in a Capital Market ETF?

    The fund manager ensures accurate index tracking, manages corporate actions, rebalances the portfolio when the index changes, and maintains liquidity for efficient trading.

  6. Are Capital Market ETFs regulated in India?

    Yes. They are regulated by SEBI and must follow its rules on disclosures, investment limits, and operational processes to safeguard investors.

  7. Can I invest in Capital Market ETFs through SIP?

    Yes. Some brokers offer SIP-like facilities for ETFs. These typically purchase whole units at periodic intervals, unlike mutual fund SIPs that allow fractional units.

  8. How to sell capital markets ETFs?

    Capital Markets ETFs can be sold on the exchange through your demat account by placing a sell order during trading hours. The transaction executes at market price and settles normally.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.