Finance

10 Best Index Funds in India to Invest

10 Best Index Funds in India to Invest

Are you looking for a smart and hassle-free manner to invest in the Indian stock market? Look no further! Index funds have emerged as a popular funding choice, allowing buyers to diversify their portfolios and earn consistent returns. In this blog post, we will discover the top 10 best index funds in India that have been performing incredibly well. Whether you’re a pro investor or simply beginning, these finances are worth considering. So, let’s dive properly into it and find out the quality index budget in India that can help you obtain your economic dreams without problems!

An Overview Index Funds

10 Best Index Funds in India to Invest

If you’re new to the investment sector, you might be wondering what exactly index funds are. Well, let’s break it down for you in simple phrases.

An index fund is a kind of mutual fund or exchange-traded fund (ETF) that aims to replicate the overall performance of a selected marketplace index, inclusive of the Nifty 50 or the Sensex. Instead of relying on an active fund manager to pick and choose individual stocks, an index fund invests in all the stocks within a particular index.

The beauty of index funds lies in their passive investment strategy. By mirroring the composition and weightage of an entire market index, these funds offer investors broad exposure across multiple sectors and companies. This means that your investments are spread out among various stocks rather than being concentrated in just one or two.

Why Invest in Index Funds?

Index funds have become popular due to their appeal to seasoned and novice investors. They provide diversification by offering exposure to multiple companies within a specific index, mitigating risk compared to individual stock investments. Cost-effective with low expense ratios, index funds allow investors to retain more returns over the long term, leveraging the power of compounding.

These funds also offer simplicity and ease of management, avoiding the constant monitoring required by actively managed funds. Historical data suggests that many actively managed mutual funds struggle to outperform benchmark indices consistently. Index funds align investments with market trends, eliminating the need for stock-picking skills or luck.

Systematic investment plans (SIPs) enable individuals to invest regularly in index funds without market timing concerns, fostering long-term wealth creation. This disciplined approach minimizes emotional biases associated with market timing while providing diversification across companies and sectors at a lower cost than actively managed mutual funds.

Factors to Consider Before Investing in Index Funds

best index funds in india

When investing in index funds, there are several elements that need to be considered.

  • One of the important thing factors is the expense ratio. This is the fee charged with the aid of the fund for managing your funding. It’s critical to pick out a fund with a low price ratio, as this may eat into your returns through the years.
  • Another factor to consider is the track record of the index fund. Look at its performance over different periods and compare it with similar funds. This will give you an idea of how well it has performed in both bull and bear markets.
  • Additionally, look at the assets under management (AUM) of the fund. A higher AUM indicates that more investors trust and have invested in that particular fund.
  • Diversification is another crucial factor when considering index funds. Ensure that the index fund you choose provides exposure across different sectors or asset classes so your portfolio is manageable in one area.
  • Consider your investment goals and risk tolerance before investing in an index fund. Different funds have different levels of risk associated with them, so make sure you’re comfortable with the potential ups and downs before committing your money.

By carefully considering these factors before investing in index funds, you can make informed decisions that align with your financial goals and risk appetite.

10 Best Index Funds in India

1. UTI Nifty 50 Index Fund

UTI Nifty 50 Index Fund

Website: www.utimf.com

The UTI Nifty 50 Index Fund is a popular choice among investors in India. With an impressive Assets Under Management (AUM) of ₹13,627 Crs, it reflects the trust that investors have placed in this fund. The minimum investment amount of just ₹500 makes it accessible to many individuals.

One of the key factors that make this index fund attractive is its current value, which stands at ₹9.50 Lakh. This indicates the potential for growth and wealth accumulation over time. Additionally, with a return rate of +18.43% per annum, investors can expect healthy investment returns.

Another important aspect to consider when investing money in any fund is the expense ratio. In the case of UTI Nifty 50 Index Fund, it has an expense ratio of 0.21%. While not the lowest in the market, it is still reasonable and does not significantly affect your overall returns.

The UTI Nifty 50 Index Fund offers a well-rounded investment opportunity for those looking to diversify their portfolio and benefit from market growth. Its strong performance track record and competitive expense ratio make it worth considering for both experienced and novice investors.

2. Motilal Oswal Nasdaq 100 FOF Scheme

Motilal Oswal Nasdaq 100 FOF Scheme

Website: www.motilaloswalmf.com

Motilal Oswal Nasdaq, 100 FOF Scheme, is one of the top index funds in India that investors should consider. With an AUM of ₹4,235 Crs and a minimum investment requirement of just ₹500, this fund offers accessibility to seasoned and beginners alike.

One standout feature of this scheme is its impressive return rate. With a return (p.a) of +21.05%, it has consistently outperformed many other index funds in the market. This makes it an attractive option for those seeking higher investment returns.

The expense ratio of Motilal Oswal Nasdaq 100 FOF Scheme is also worth noting, as it stands at just 0.18%. This means that the cost associated with investing in this fund is relatively low compared to others in the market.

Furthermore, with a current value of ₹10.12 Lakh, this index fund has shown steady growth over time, making it a reliable choice for long-term investments.

Motilal Oswal Nasdaq 100 FOF Scheme is a strong contender among India’s best index funds. Its consistent performance and low expense ratio make it an appealing option for investors looking to diversify their portfolio and maximize their returns without breaking the bank

3. Tata Nifty 50 Index Fund

Tata Nifty 50 Index Fund

Website:

Tata Nifty 50 Index Fund is one of the top index funds in India, offering investors a great opportunity to diversify their portfolio and gain exposure to the Indian stock market. With an AUM of ₹528 Crs, this fund has consistently performed over the years.

With a minimum investment requirement of just ₹500, the Tata Nifty 50 Index Fund is accessible to retail and institutional investors. The current value of ₹9.48 Lakh reflects its growth potential.

Investors can expect a solid return on their investment with this fund, as it has delivered a commendable annual return of +18.35%. This performance showcases the fund’s ability to track the Nifty 50 index effectively.

The expense ratio of 0.2% is relatively low compared to similar funds in the market, making the Tata Nifty 50 Index Fund cost-effective for investors. It ensures that a significant portion of returns are kept from expenses.

Tata Nifty 50 Index Fund stands out due to its strong historical performance and lower expense ratio. Investors looking for a reliable index fund option should consider adding this fund to their portfolio for long-term wealth creation opportunities in the Indian market.

4. Franklin India NSE Nifty 50 Index

Franklin India NSE Nifty 50 Index

Website:  www.franklintempletonindia.com

Franklin India NSE Nifty 50 Index fund is one of the top choices for investors looking to invest in index funds. With an asset under management (AUM) of ₹578 Crs, this fund offers a great opportunity to diversify your portfolio and track the performance of the Nifty 50 index.

The minimum investment required is just ₹500, making it accessible to new and experienced investors. The current value stands at ₹9.42 Lakh, with a solid annual return of +18.10%. This indicates consistent growth over time, which is crucial for long-term investments.

Another factor that sets Franklin India NSE Nifty 50 Index fund apart is its expense ratio of 0.24%, which is relatively lower than many other similar funds in the market. This means a lesser portion of your investment will go towards fees and expenses, allowing you to maximize your returns.

By investing in Franklin India NSE Nifty 50 Index fund, you can gain exposure to some of the top companies listed on the National Stock Exchange (NSE). It provides a well-diversified portfolio across various sectors such as banking, IT, pharmaceuticals, and more.

Consider adding Franklin India NSE Nifty 50 Index fund to your investment strategy if you seek stability and long-term growth potential through low-cost index funds.

5. ICICI Prudential Nifty 50 Index Fund

ICICI Prudential Nifty 50 Index Fund

Website: www.icicipruamc.com

ICICI Prudential Nifty 50 Index Fund is a popular choice among investors in India. With an impressive assets under management (AUM) of ₹5,733 Crs, it offers a great opportunity for individuals to invest and grow their wealth.

One of the key advantages of this index fund is its low minimum investment requirement. With just ₹105, anyone can start investing in this fund, making it accessible to many investors.

The current value stands at ₹9.49 Lakh, showcasing the potential for substantial returns over time. The annual return rate of +18.40% further reinforces its strong performance track record.

Another notable feature is its low expense ratio of 0.17%. This means that the fee concerned with handling and running this fund is exceedingly decreased compared to other options inside the market.

ICICI Prudential Nifty 50 Index Fund tracks the performance of the Nifty 50 Index, which comprises the top 50 companies listed on the National Stock Exchange (NSE). By investing in this fund, investors get exposure to diverse sectors and blue-chip stocks within one portfolio.

Considering all these factors, the ICICI Prudential Nifty 50 Index Fund is a reliable option for those seeking stability and long-term growth potential through index funds. It has consistently delivered favorable returns while keeping costs at bay.

6. SBI Nifty Index Fund

SBI Nifty Index Fund

Website: www.sbimf.com

SBI Nifty Index Fund is one of the top choices for investors looking to invest in index funds. With its impressive assets under management (AUM) of ₹5,178 Crs, this fund has gained quite a reputation in the market.

The minimum investment requirement of just ₹500 makes it accessible to a wide range of investors, from beginners to seasoned professionals. The current value stands at ₹9.47 Lakh, reflecting the strong performance and growth potential.

With an annual return rate of +18.32%, the SBI Nifty Index Fund has consistently delivered attractive returns to its investors. This showcases its ability to track and replicate the performance of the underlying Nifty 50 Index effectively.

One notable aspect is its low expense ratio of 0.18%. This means that investors can enjoy higher returns as a significant portion needs to be eaten up by high expenses.

Investing in the SBI Nifty Index Fund provides diversification across various sectors and companies within the Nifty 50 Index, reducing risk while ensuring exposure to India’s top-performing stocks.

SBI Nifty Index Fund is a reliable choice for those seeking long-term capital appreciation with lower costs and steady growth potential through passive investing in quality blue-chip companies listed on the National Stock Exchange (NSE).

7. HDFC Index Fund Nifty 50 Plan

HDFC Index Fund Nifty 50 Plan

Website: www.hdfcfund.com

HDFC Index Fund Nifty 50 Plan is one of the best index funds in India that investors should consider. With Assets Under Management (AUM) of ₹10,614 Crs, this fund has gained popularity among investors looking for a passive investment option.

The minimum investment required in the HDFC Index Fund Nifty 50 Plan is just ₹105, making it accessible to retail and institutional investors. Currently valued at ₹9.48 Lakh, this fund has delivered a solid annual return of +18.36%.

What sets HDFC Index Fund Nifty 50 Plan apart from other index funds is its low expense ratio of 0.2%. This means that a larger portion of your investment goes towards generating returns rather than being eaten up by fees.

Investing in HDFC Index Fund Nifty 50 Plan allows you to gain exposure to the top 50 companies listed on the National Stock Exchange (NSE), known as the Nifty 50 index. This diversified portfolio helps spread out risk and provides stability to your investments.

Whether you are a new or experienced investor, considering HDFC Index Fund Nifty 50 Plan can be a smart move towards building wealth over the long term while keeping costs low.

8 Bandhan Nifty 50 Index Fund

Bandhan Nifty 50 Index Fund

Website: www.bandhanmutual.com

The 8th index fund on our list is the Bandhan Nifty 50 Index Fund. With an asset under management (AUM) of ₹1,002 Crores, it offers a minimum investment requirement of just ₹100. Currently valued at ₹9.53 Lakhs, this fund has shown an impressive annual return of +18.43%.

The expense ratio for this fund is only 0.1%, making it one of the most cost-efficient options available in India. Investing in this index fund allows you to gain exposure to the top 50 companies listed on the Nifty index.

Bandhan Nifty 50 Index Fund affords investors a different portfolio that tracks the overall performance of the Nifty 50 benchmark index, which includes blue-chip stocks from diverse sectors, including banking, energy, technology, and more.

By investing in this fund, you can benefit from market movements and potential growth opportunities while minimizing risk through broad market diversification. Whether you are a beginner or an experienced investor looking for stable returns over the long term, the Bandhan Nifty 50 Index Fund could be worth considering.

9. Nippon India Index Nifty 50

Nippon India Index Nifty 50

Website: www.mf.nipponindiaim.com

Nippon India Index Nifty 50 is a popular index fund in the Indian market, with an impressive Asset Under Management (AUM) of ₹1,128 Crs. This fund allows investors to gain exposure to the top 50 companies listed on the National Stock Exchange (NSE). With a minimum investment requirement of just ₹500, it provides an affordable option for individuals looking to invest in index funds.

The current value of this fund stands at ₹9.48 Lakh, showcasing its potential for growth over time. The annual return rate of +18.36% further highlights its ability to generate stable and consistent investor returns.

With an expense ratio of 0.2%, the Nippon India Index Nifty 50 ensures that investors can benefit from low costs while enjoying the advantages of diversification across various sectors within the Indian economy.

Investing in this index fund may be a sensible choice because it lets individuals participate in the growth ability presented via a number of India’s largest and maximum hit groups across exceptional industries.

Nippon India Index Nifty 50 presents a compelling investment opportunity for those seeking long-term capital appreciation through passive investing strategies.

10. Aditya Birla Sun Life Nifty 50 Index Fund

Aditya Birla Sun Life Nifty 50 Index Fund

Website: www.mutualfund.adityabirlacapital.com

Aditya Birla Sun Life Nifty 50 Index Fund is one of the top index funds in India, offering investors an opportunity to gain exposure to the Nifty 50 Index. With an asset under management (AUM) of ₹673 Crs, this fund has a minimum investment requirement of just ₹105, making it accessible to a wide range of investors.

The current value of this fund stands at ₹9.45 Lakh, showcasing its potential for growth over time. One key aspect that makes Aditya Birla Sun Life Nifty 50 Index Fund attractive is its impressive return rate. With a return of +18.21% per annum, it has consistently performed well. This makes it an appealing choice for those seeking long-term capital appreciation.

The expense ratio for this fund stands at 0.2%, which is relatively low and helps reduce the overall cost burden on investors. It means that a greater portion of your investment goes towards generating returns rather than being eaten up by expenses.

Investing in Aditya Birla Sun Life Nifty 50 Index Fund allows you to diversify your portfolio by gaining exposure to large-cap stocks across various sectors in India’s equity market. This can help mitigate risk and provide stability during volatile market conditions.

Aditya Birla Sun Life Nifty 50 Index Fund is a reliable option for those looking to invest in index funds with the potential for steady growth and consistent performance over time.

Conclusion

In conclusion, investing in index funds is a smart and efficient way to build wealth in the Indian market. The 10 best index funds mentioned above offer a diverse range of options for investors, with low fees, strong track records, and alignment with different investment goals. Whether you are a beginner or a skilled investor, these top-performing index funds can offer long-term growth and stability to your portfolio. So, consider adding them to your investment strategy for a well-rounded and successful financial future.

Disclaimer

This article is only for informational purposes and should not be considered financial advice. Always do thorough research before making any investment decisions. The information provided above regarding each Index Fund, including its asset under management (AUM), minimum investment requirement, current value, return rate, and expense ratio, are based on data available as of January 2, 2024.

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