The below shows the best index funds in India.
| Funds | NAV | Expense Ratio | Minimum Investment (₹) |
| IDFC Nifty Fund | 37.21 | 0.1 | 5,000 |
| ICICI Prudential Nifty Index Fund | 176.19 | 0.17 | 100 |
| Tata Index Nifty Fund | 113.53 | 0.16 | 5,000 |
| Nippon India Index Fund – Sensex Plan | 30.36 | 0.15 | 5,000 |
| HDFC Index Nifty 50 Plan | 162.92 | 0.2 | 5,000 |
| HDFC Index Sensex Plan | 534.55 | 0.2 | 5,000 |
| SBI Nifty Index Fund | 155.69 | 0.18 | 5,000 |
| Aditya Birla Sun Life Nifty 50 Index Fund | 173.87 | 0.32 | 100 |
| Franklin India Index Fund – NSE Nifty Plan | 142.62 | 0.29 | 5,000 |
| Tata Index Sensex Fund | 150.19 | 0.27 | 5,000 |
Who would not want a risk-free investment option where the money grows at an excellent rate?
Without a doubt, Everyone is looking out for such options.
Well, you’re at the right place in search of that Investment option. In this article, you will be reading about the best Index Funds in India that have performed well in the past years and have been tested on various criteria.
To bring things into better understanding, we have designed the article in the below-mentioned sequence so that you get a clear picture of the top index funds in India.
Content:
- What is an Index Fund?
- Advantages of Investing in an Index Fund.
- How to invest in index funds in India?
- Best Index Funds in India 2023.
What is an Index Fund?
Index Funds are mutual fund schemes that develop their portfolios using a market index as a benchmark. In other words, an index fund’s performance is determined by the performance of a specific index. These funds invest in the same percentage of stocks as the underlying index.
Index funds are a good place to start if you’re searching for a long-term, low-risk investment. The performance of index funds is dependent on their low volatility, and, as a result, the index is used. The term index here can be referred to as NSE’s Nifty and BSE’s Sensex.
In the coming sections of this article, you will find out about the best ETF in India, best nifty index fund, nifty 50 index fund, and other index mutual funds.
Advantages of Investing in an Index Fund
There are tons of advantages of investing in an index fund, to name a few, we have got you a list:
- Low Expense Ratio
- Low-Risk
- Stable Returns
- Well established corporations are listed in the index mutual fund
- Diversification in different sectors
- Don’t have to track performance continuously
- Enjoy a market level return on your index funds
Since we are talking about Indices, aren’t you curious to know the companies that constitute Sensex and Nifty. Find them in the articles below:
How to invest in index funds in India?
Getting started with index mutual funds investment is pretty basic with Alice Blue.
If you are not an Alice Blue Client, you need to first open your account with Aliceblue.
If you are an Alice Blue Client, start using Alice Mutual Funds for free!!!
Simply log in, select your desired funds from the bunch of available funds and start investing.
Best Index Funds in India 2023
The below table shows the best-performing index funds in India as of 17th Jan 2022. Data includes NAV (Net Asset Value), Expense Ratio, 3Y & 5Y CAGR, and Minimum Investment required to start these index mutual funds.
| Sl No. | Funds | NAV | Expense Ratio | 3Y CAGR (%) | 5Y CAGR (%) | Minimum Investment (₹) |
| 1 | IDFC Nifty Fund | 39.55 | 0.1 | 16.81 | 13.5 | 5,000 |
| 2 | ICICI Prudential Nifty Index Fund | 187.3 | 0.17 | 16.49 | 13.19 | 100 |
| 3 | Tata Index Nifty Fund | 120.68 | 0.16 | 16.43 | 13.3 | 5,000 |
| 4 | Nippon India Index Fund – Sensex Plan | 32.33 | 0.15 | 16.31 | 14.1 | 5,000 |
| 5 | HDFC Index Nifty 50 Plan | 173.19 | 0.2 | 15.39 | 13.27 | 100 |
| 6 | HDFC Index Sensex Plan | 569.3 | 0.2 | 16.16 | 14.02 | 100 |
| 7 | SBI Nifty Index Fund | 165.52 | 0.18 | 16.25 | 13.11 | 5,000 |
| 8 | Aditya Birla Sun Life Nifty 50 Index Fund | 184.82 | 0.32 | 16.26 | 12.83 | 100 |
| 9 | Franklin India Index Fund – NSE Nifty Plan | 151.52 | 0.29 | 16.18 | 12.82 | 5,000 |
| 10 | Tata Index Sensex Fund | 159.93 | 0.27 | 15.99 | 13.96 | 5,000 |
IDFC Nifty Fund
IDFC Nifty Direct Plan-Growth is a Large Cap mutual fund strategy by IDFC Mutual Fund. This fund has been in operation for nine years, having been established on January 1, 2013. IDFC Nifty Direct Plan-Growth has 357 Crores in assets under management (AUM) as of 31/12/2021 and is a medium-sized fund in its category.
The fund’s expense ratio is 0.10%, which is lower than what most other Large Cap funds charge. IDFC Nifty Direct Plan-Growth gains over the last year are 22.18%. Since its inception, it has averaged 13.80% annual returns. Every two years, the fund has doubled the money put in it.
ICICI Prudential Nifty Index Fund
ICICI Prudential Nifty Index Direct Plan-Growth is an ICICI Prudential Mutual Fund Large Cap mutual fund program. This fund has been in operation for 9 years, having been established on January 1, 2013. As of 31/12/2021, the assets under management (AUM) of ICICI Prudential Nifty Index Direct Plan-Growth was at 2,438 crores, making it a medium-sized fund in its category.
The fund’s expense ratio is 0.17%, which is lower than that of most other Large Cap funds. The one-year growth returns on the ICICI Prudential Nifty Index Direct Plan are 22.39%. Since its inception, it has had an average yearly return of 13.78%. Every two years, the fund has doubled the amount invested in it.
Tata Index Nifty Fund
Tata Index Nifty Direct is a Tata Mutual Fund Large Cap mutual fund program. This fund has been in operation for nine years, having been established on January 1, 2013. Tata Index Nifty Direct has 223 Crores in assets under management (AUM) as of December 31, 2021, making it a medium-sized fund in its category.
The fund’s expense ratio is 0.16%, which is lower than that of most other Large Cap funds. The one-year returns on the Tata Index Nifty Direct are 22.24%. It has earned 13.80% average yearly returns since its inception. Every two years, the fund has doubled the amount invested in it.
Nippon India Index Fund – Sensex Plan
Nippon India Index Fund is a mutual fund that invests in India. Nippon India Mutual Fund’s Sensex Plan Direct-Growth is a Large Cap mutual fund strategy. This fund has been around for nine years, having started on January 1, 2013.
As of December 31, 2021, Nippon India Index Fund Sensex Plan Direct-Growth has 240 crores in assets under management (AUM), making it a medium-sized fund in its category. The fund’s expense ratio is 0.15%, which is lower than the expense ratios charged by most other Large Cap funds.
The fund is invested in Indian stocks to the extent of 99.97%, with 90.13% in large-cap stocks.
It has returned an average of 13.69% per year since its inception. Every two years, the fund has doubled the money put in it.
HDFC Index Nifty 50 Plan
The HDFC Index Fund Nifty 50 Plan Direct-Growth is an HDFC Mutual Fund Large Cap mutual fund plan. Since its inception on January 1, 2013, this fund has been around for nine years. As of December 31, 2021, HDFC Index Fund Nifty 50 Plan Direct-Growth had a total AUM of 4,434 crores, making it a medium-sized fund in its category.
The fund charges a 0.2% expense ratio, which is lower than most other Large Cap funds. The HDFC Index Fund Nifty 50 Plan Direct has returned 22.35% in the last year. It has had an average yearly return of 13.84% since its start. Every two years, the fund doubles the amount invested.
HDFC Index Sensex Plan
HDFC Index Sensex Direct Plan-Growth is a Large Cap mutual fund strategy. This fund has been in operation for nine years, having been established on January 1, 2013. As of 31/12/2021, the assets under management (AUM) of HDFC Index Sensex Direct Plan-Growth was at 2,915 Crores, making it a medium-sized fund in its category.
The fund’s expense ratio is 0.2%, which is lower than that of most other Large Cap funds.
HDFC Index Sensex Direct Plan-Growth gains over the last year are 20.30%. It has earned 14.16% average yearly returns since its inception. Every two years, the fund has doubled the amount invested in it.
The HDFC Index Sensex Direct Plan-Growth scheme’s ability to provide consistent returns is comparable to that of most funds in its category. It has an average capacity to control losses in a sinking market.
The majority of the fund’s assets are invested in the financial, technology, energy, FMCG, and construction industries. In comparison to other funds in the category, it has acquired less exposure in the financial and technology industries.
Reliance Industries Ltd., Infosys Ltd., HDFC Bank Ltd., ICICI Bank Ltd., and Housing Development Finance Corpn. Ltd. are the fund’s top five holdings.
SBI Nifty Index Fund
SBI Mutual Fund’s SBI Nifty Index Direct Plan-Growth is a Large Cap mutual fund program. This fund has been around for nine years, having started on January 1, 2013. As of December 31, 2021, SBI Nifty Index Direct Plan-Growth had assets under management (AUM) of 1,812 crores, making it a medium-sized fund in its category.
The fund’s expense ratio is 0.18%, which is lower than the expense ratios charged by most other Large Cap funds. The 1-year returns on the SBI Nifty Index Direct Plan-Growth are 22.27%. It has returned an average of 13.29% per year since its inception. Every two years, the fund has doubled the money put in it.
Aditya Birla Sun Life Index Fund
Aditya Birla Sun Life Nifty 50 Index Fund Direct-Growth is an Aditya Birla Sun Life Mutual Fund Large Cap mutual fund strategy. This fund has been around for nine years, having been established on January 1, 2013.
As of December 31, 2021, Aditya Birla Sun Life Nifty 50 Index Fund Direct-Growth had 306 crores in assets under management (AUM), making it a medium-sized fund in its category. The fund has a 0.32% cost ratio, which is lower than most other Large Cap funds.
Aditya Birla Sun Life Nifty 50 Index Fund Direct-Growth returns have been 22.12% over the last year. It has had an average yearly return of 13.03% since its inception. Every two years, the fund has doubled the amount invested.
Franklin India Index Fund – NSE Nifty Plan
Franklin India Index Fund NSE Nifty Direct-Growth is a Franklin Templeton Mutual Fund Large Cap mutual fund. This fund has been around for nine years, having been established on January 1, 2013. Franklin India Index Fund NSE Nifty Direct-Growth has assets under management (AUM) of 457 crores as of December 31, 2021, making it a medium-sized fund in its category.
The fund’s expense ratio is 0.29%, which is comparable to the expense ratios of most other Large Cap funds. Franklin India Index Fund NSE Nifty Direct-Growth returns have been 21.97% during the last year. It has had an average yearly return of 13.32% since its inception. Every two years, the fund has doubled the amount invested.
Tata Index Sensex Fund
Tata Index Sensex Direct is a Large Cap mutual fund scheme from Tata Mutual Fund. This fund was established on January 1st, 2013, and has now been operating for nine years. At 112 Crores in assets under management (AUM) as of December 31, 2021, Tata Index Sensex Direct is a medium-sized fund in its category.
With an expense ratio of 0.27%, the fund is in the same ballpark as most other large-cap mutual funds. The Tata Index Sensex Direct has returned 19.56% in the past year. It has returned an average of 13.64% every year since its inception. Every two years, the fund has returned twice the amount invested.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
