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Best Nifty 500 ETFs in India (2026)

The NIFTY 500 represents a large share of India’s listed market capitalisation and includes companies across large-, mid-, and small-cap segments. As passive investing expands, ETFs linked to this benchmark allow investors to access wide market participation through exchange trading with transparent pricing. This article explains how Nifty 500 ETFs work, where benefits may arise, what risks remain, and which practical factors influence evaluation.

List of Best Nifty 500 ETFs in India for 2026

Nifty 500 ETF Stock Screener

Nifty 500 ETF Stock Screener: Analyse & Filter Indian Stocks on Tickertape

Showing 1 - 7 of 7 results

last updated at 6:30 AM IST 
NameStocks (7)Sub-SectorSub-SectorMarket CapMarket CapClose PriceClose PricePE RatioPE Ratio1D Return1D Return1M Return1M Return6M Return6M Return1Y Return1Y ReturnPB RatioPB RatioReturn on EquityReturn on EquityROCEROCEDividend YieldDiv YieldDebt to EquityDebt to EquityVolatility vs NiftyVolatility vs Nifty
1.Motilal Oswal Nifty 500 ETFMONIFTY500EquityEquity31.4031.4021.9621.96--0.270.27-7.85-7.85-7.54-7.547.237.23----------1.041.04
2.Groww Nifty 500 Momentum 50 ETFGROWWMOM50EquityEquity8.138.139.659.65--0.840.84-9.05-9.05-8.10-8.10-5.11-5.11----------1.151.15
3.Motilal Oswal Nifty 500 Momentum 50 ETFMOMENTUM50EquityEquity7.577.5747.4847.48--0.210.21-7.98-7.98-8.95-8.956.156.15----------1.271.27
4.Edelweiss Nifty500 Multicap Momentum Quality50 ETFEMULTIMQEquityEquity6.816.8137.9737.97---0.86-0.86-9.53-9.53-10.57-10.575.335.33----------1.201.20
5.Axis Nifty500 Value 50 ETFAXISVALUEEquityEquity6.746.7431.6631.66---0.63-0.63-4.98-4.988.548.5422.3822.38----------1.301.30
6.DSP Nifty500 Flexicap Quality 30 ETFFLEXIADDEquityEquity6.066.069.239.23---1.18-1.18-8.70-8.70-13.41-13.41-13.41-13.41----------1.041.04
7.Groww Nifty 500 Low Volatility 50 ETFGROWWLOVOLEquityEquity5.005.009.869.86---1.00-1.00-7.94-7.94-6.10-6.10-1.79-1.79----------0.980.98

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: Sub-sector: Equity | Market Cap: Sorted from Highest to Lowest

What are Nifty 500 ETFs?

Nifty 500 ETFs are exchange-traded funds that aim to replicate the performance of the NIFTY 500. This index represents companies across large-cap, mid-cap, and small-cap segments and covers a significant share of India’s listed market capitalisation. By holding the same stocks in similar weights, these ETFs provide diversified exposure through a single tradable unit on the exchange.

Overview of Top Nifty 500 ETFs in India

Motilal Oswal Nifty 500 ETF

The ETF seeks to replicate the Nifty 500 Index, which represents a broad cross-section of the Indian equity market. It includes companies from large, mid, and small-cap segments across multiple industries. By tracking this benchmark, the fund offers diversified market exposure within one tradable instrument listed on the exchange.

Mirae Asset Nifty500 Multicap 50:25:25 ETF

This ETF follows the Nifty500 Multicap 50:25:25 Index, which allocates 50% weight to large caps, 25% to mid caps, and 25% to small caps. The structure ensures balanced participation across company sizes instead of concentrating heavily in large firms. The investors, therefore, receive diversified exposure guided by predefined allocation rules.

Groww Nifty 500 Momentum 50 ETF

The fund tracks the Nifty 500 Momentum 50 Index, selecting stocks that demonstrate relatively stronger recent price performance within the broader market universe. The methodology follows quantitative filters and periodic rebalancing. As momentum leadership changes, the portfolio composition may also shift.

Motilal Oswal Nifty 500 Momentum 50 ETF

This ETF also mirrors the Nifty 500 Momentum 50 Index and builds exposure toward companies that rank higher on momentum indicators. The rule-driven framework adjusts weights during scheduled reviews, which allows the portfolio to evolve alongside prevailing market trends.

Groww Nifty 500 Low Volatility 50 ETF

The Groww Nifty 500 Low Volatility 50 ETF tracks the Nifty 500 Low Volatility 50 Index, which consists of 50 stocks from the Nifty 500 universe that have historically shown the least price fluctuation. It offers exposure to relatively stable large, mid, and small-cap companies in a single, passively managed fund.

How to Invest in Nifty 500 ETFs?

Here’s how you can invest in Nifty 500 ETFs using Tickertape -

  1. Create an account on the Tickertape or log in if you already have one.
  2. Open Nifty 500 ETFs Screener
  3. 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.

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!

Taxation on Nifty 500 ETF

Capital gains tax on equity ETFs depends on how long the units are held. The table below summarises the rates for short-term and long-term holdings.

Holding Period Tax Treatment
Short-Term (< 12 months) Gains taxed at a flat rate of 20%.
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.

Advantages of Investing in Nifty 500 ETFs

Single-Basket Exposure

Nifty 500 ETFs replicate the Nifty 500 Index, which represents over 95% of total Indian market capitalisation across large, mid, and small-cap segments. This allows investors to participate in wide market movements through a single tradable instrument, reducing the need to buy multiple individual stocks.

Cross-Sector Diversification

Because the Nifty 500 Index includes companies from multiple industries, from banking and IT to FMCG and industrials, these ETFs help spread risk across sectors. In contrast, narrow indices such as Nifty 50 may bias large caps; the Nifty 500 structure dampens concentration risk by design.

Passive Cost Efficiency

Unlike actively managed equity funds that deploy discretion, Nifty 500 ETFs follow a rules-based index with minimal tracking error. Their passive replication approach often results in lower expense ratios compared with actively managed alternatives, making them a cost-efficient way to hold broad market exposure.

Risks of Investing in Nifty 500 ETFs

Full Market Linkage

Although Nifty 500 ETFs spread exposure across many companies, they remain fully market-linked. During broad market downturns, such as the sharp declines seen during major global stress events, these ETFs can experience significant drawdowns proportional to the Nifty 500 Index.

Weight Concentration

Even within a broad index like Nifty 500, the largest companies carry higher weights and can disproportionately influence returns. In periods where mega-cap stocks underperform smaller constituents, ETF returns may skew toward the performance of heavyweights.

Tracking Gaps

While benchmark replication is the goal, execution realities, such as costs, cash buffering, rebalancing timing, and liquidity in less traded constituent stocks, can create tracking gaps between the ETF and the index it follows.

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Factors to Consider Before Investing in Nifty 500 ETFs

Index Framework

The way the Nifty 500 Index selects and weights constituents shapes the ETF portfolio. Rules such as free-float market capitalisation and scheduled rebalancing determine which companies enter or exit and the allocation each receives.

Unit Liquidity

Daily traded value and bid-ask spreads serve as practical signals of execution conditions on the exchange. ETFs that record consistently higher volumes often see smoother transactions and lower implicit costs, while lighter activity can coincide with wider spreads.

Tracking Record

Costs and historical tracking patterns influence how closely an ETF mirrors its benchmark. Lower expense ratios and tighter tracking differences have typically aligned returns more closely with index performance over time.

Conclusion

Nifty 500 ETFs package broad equity market exposure into a single tradable structure. Index methodology, constituent liquidity, and cost efficiency play important roles in shaping outcomes. While diversification spans hundreds of companies, market cycles, weight concentration, and replication dynamics continue to influence performance.

Investors can study portfolio composition, sector weights, liquidity metrics, and historical tracking behaviour on Tickertape Stock Screener to better understand how different ETFs operate within the broader market environment.

Frequently Asked Questions on Nifty 500 ETFs

  1. What are Nifty 500 ETFs?

    Nifty 500 ETFs replicate the performance of the NIFTY 500. The index covers companies across large-, mid-, and small-cap segments and represents a major share of India’s market capitalisation. Investors gain diversified exposure through a single unit that trades on the exchange.

  2. Is there any ETF for the Nifty 500?

    The following are the Nifty 500 ETFs based on !-year returns:
    1. Axis Nifty500 Value 50 ETF
    2. Mirae Asset S&P 500 Top 50 ETF
    3. Motilal Oswal Nifty 500 ETF
    4. ICICI Prudential BSE 500 ETF
    5. Mirae Asset Nifty500 Multicap 50:25:25 ETF
    Disclaimer: This Nifty 500 ETF list is for general awareness and does not constitute investment advice or a recommendation. Investors should evaluate scheme details and consult a SEBI-registered Investment Advisor before investing.

  3. What is the Nifty 500 TRI?

    The NIFTY 500 Total Return Index, commonly called the Nifty 500 TRI, measures index performance after assuming that dividends paid by constituent companies are reinvested back into the index. Because it captures both price movement and income distribution, the TRI typically shows higher values than the price index over long periods. Investors and fund managers often use it as a benchmark to evaluate how closely portfolios reflect total market returns.

  4. What are the advantages of investing in Nifty 500 ETFs?

    Nifty 500 ETFs provide exposure to a wide set of companies across sectors and market capitalisations in one transaction. The passive approach follows predefined index rules, which makes holdings transparent. Exchange trading also enables intraday liquidity and visible pricing.

  5. What are the risks of investing in Nifty 500 ETFs?

    These ETFs move with the equity market. Companies with larger weights can influence results more strongly than smaller constituents. Portfolio management costs, cash balances, and trading conditions may create differences between ETF returns and the index.

  6. Are Nifty 500 ETFs suitable for beginners in the stock market?

    Some participants use broad-market indices to observe how diversified equity exposure behaves over time. Individual comfort with volatility, timelines, and expectations can differ significantly. Disclaimer: Suitability depends on personal financial goals, knowledge, and risk profile. This content is informational and not a recommendation. Investors should seek advice from a SEBI-registered professional before making decisions.