Top Performing Index Funds in 1 Year

The below table shows a list of the Top Performing Index Funds in 1 Year based on AUM, NAV, and minimum SIP.

What Are Index Funds?

Index funds are passive investment vehicles that aim to replicate the performance of a specific market index, such as the S&P 500 or Nifty 50. These funds invest in the same securities and in the same proportion as the underlying index, providing investors with broad market exposure.

Unlike actively managed funds, index funds don’t try to outperform the market. Instead, they seek to match the index’s returns as closely as possible. This approach typically results in lower expenses and more predictable performance.

Index funds offer diversification, transparency, and cost-effectiveness. They’re suitable for investors who believe in the efficiency of markets and prefer a buy-and-hold strategy rather than trying to beat the market through active management.

Features Of Top Performing Index Funds in 1 Year

The main features of top-performing index funds in 1 year include low expense ratios, high tracking accuracy, broad market exposure, passive management, and potential for consistent returns. These funds aim to replicate the performance of their benchmark indices while minimizing costs and tracking errors.

1. Low expense ratios: Top-performing index funds typically have very low expense ratios compared to actively managed funds. This is because they don’t require extensive research or frequent trading, allowing them to pass on the cost savings to investors and potentially deliver higher net returns.

2. High tracking accuracy: These funds strive to minimize tracking errors, which is the difference between the fund’s performance and that of the underlying index. Top-performing index funds employ various strategies to closely match their benchmark’s returns, ensuring investors get the intended market exposure.

3. Broad market exposure: Index funds provide investors with exposure to a wide range of securities within a single investment. This diversification helps spread risk across multiple companies or sectors, potentially reducing the impact of poor performance from individual stocks on the overall portfolio.

4. Passive management: Unlike actively managed funds, index funds follow a passive investment strategy. The fund manager’s role is to ensure the fund’s holdings match the composition of the underlying index, rather than trying to outperform the market through stock selection or market timing.

5. Potential for consistent returns: Top-performing index funds aim to deliver returns that closely match their benchmark indices. While this means they may not outperform the market, it also reduces the risk of significant underperformance, potentially leading to more consistent and predictable returns over time.

Best Performing Index Funds in 1 Year

The table below shows the Best Performing Index Funds in 1 Year based on the lowest to highest expense ratio.

Top Performing Index Funds in 1 Year In India

The table below shows the top performing index funds in 1 Year In India based on the Highest 3Y CAGR.

Top Performing Index Funds in 1 Year List

The table below shows the top performing index Funds in the 1 Year List based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Factors To Consider When Investing In Top Performing Index Funds in 1 Year

When investing in top-performing index funds, consider factors such as expense ratio, tracking error, fund size, liquidity, and the reputation of the fund house. These elements can impact the fund’s ability to replicate the index’s performance and affect your overall returns.

Examine the fund’s historical performance to ensure it closely tracks its benchmark index. Look for consistency in returns and minimal deviation from the index over various time periods.

Consider the underlying index the fund tracks. Different indices may offer exposure to various market segments or geographical regions, so choose one that aligns with your investment goals and risk tolerance.

How To Invest In Top Performing Index Funds in 1 Year?

To invest in top-performing index funds, start by researching different funds and comparing their expense ratios, tracking errors, and historical performance. Choose a fund that aligns with your investment goals and risk tolerance, considering the index it tracks. You can easily invest through Alice Blue’s user-friendly online platform.

Once you’ve selected a fund, you can complete the investment process through various channels. Many mutual fund companies and third-party distributors offer online platforms for convenient investing. Alternatively, you can approach a financial advisor or visit the fund house’s office.

Decide between lump sum investments or systematic investment plans (SIPs) based on your financial situation. SIPs offer the advantage of rupee cost averaging and can help mitigate market timing risks. Whichever method you choose, ensure you’re comfortable with the investment approach.

Advantages Of Investing In Top Performing Index Funds in 1 Year?

The main advantages of investing in top-performing index funds include low costs, broad market exposure, transparency, simplicity, potential for consistent returns, tax efficiency, and reduced manager risk. These factors make index funds an attractive option for many investors.

1. Low costs: Index funds typically have lower expense ratios compared to actively managed funds. This cost efficiency can lead to higher net returns for investors over time, as a smaller portion of the fund’s assets is used to cover management fees and operational expenses.

2. Broad market exposure: Top-performing index funds provide investors with exposure to a wide range of securities within a single investment. This diversification helps spread risk across multiple companies or sectors, potentially reducing the impact of poor performance from individual stocks on the overall portfolio.

3. Transparency: Index funds offer a high level of transparency, as their holdings are generally known and reflect the composition of the underlying index. This allows investors to easily understand what they own and how their investments are performing relative to the broader market.

4. Simplicity: Investing in index funds is straightforward and requires less research compared to selecting individual stocks or actively managed funds. This simplicity makes them accessible to both novice and experienced investors, reducing the complexity of portfolio management.

5. Potential for consistent returns: Top-performing index funds aim to match the returns of their benchmark indices. While this means they may not outperform the market, it also reduces the risk of significant underperformance, potentially leading to more consistent and predictable returns over time.

Risks Of Investing In Top Performing Index Funds in 1 Year?

The main risks of investing in top-performing index funds include market risk, lack of flexibility, tracking error, concentration risk, and potential underperformance during market downturns. These factors can impact the fund’s performance and should be considered by investors.

1. Market risk: Index funds are subject to the same market fluctuations as the underlying index they track. If the overall market or specific sectors experience a downturn, the fund’s value will decline accordingly, potentially leading to losses for investors.

2. Lack of flexibility: Unlike actively managed funds, index funds cannot adjust their holdings based on market conditions or economic outlooks. This lack of flexibility means they cannot take defensive positions during market downturns or capitalize on specific opportunities outside their index.

3. Tracking error: While top-performing index funds strive to minimize tracking errors, some deviation from the benchmark’s performance is inevitable. Factors such as fund expenses, cash holdings, and rebalancing can cause the fund’s returns to differ slightly from the index.

4. Concentration risk: Some indices may be heavily weighted towards specific sectors or companies. For example, a technology-focused index fund may have significant exposure to a few large tech companies, potentially increasing risk if those sectors or companies underperform.

5. Potential underperformance: During certain market conditions, such as periods of high volatility or sector-specific rallies, index funds may underperform actively managed funds that can adapt their strategies. This limitation can result in missed opportunities for higher returns in specific market environments.

Introduction to Best Performing Index Funds in 1 Year in India

UTI Nifty 50 Index Fund Direct-Growth

UTI Nifty 50 Index Fund Direct-Growth is a Large Cap Index mutual fund scheme from UTI Mutual Fund. This fund has been in existence for 11 years and 7 months, having been launched on 01/01/2013.

UTI Nifty 50 Index Fund. It is an Index Fund with an AUM of ₹19,356.78 Crores, a 5-year CAGR of 19.09%, no exit load, and an expense ratio of 0.18%. SEBI risk category is Very High. The portfolio includes Rights: 0.01%, Cash & Equivalents: 0.46%, and Equity: 99.53%.

HDFC Index Fund Nifty 50 Plan Direct-Growth

HDFC Index Fund Nifty 50 Plan Direct-Growth is a Large Cap Index mutual fund scheme from HDFC Mutual Fund. This fund has been in existence for 11 years and 7 months, having been launched on 01/01/2013.

HDFC Index Fund-NIFTY 50 Plan. It is an Index Fund with an AUM of ₹16,592.31 Crores, a 5-year CAGR of 18.99%, an exit load of 0.25%, and an expense ratio of 0.2%. SEBI risk category is Very High. The portfolio includes Rights: 0.01%, Cash & Equivalents: 0.14%, and Equity: 99.85%.

ICICI Prudential Nifty 50 Index Direct Plan-Growth

ICICI Prudential Nifty 50 Index Direct Plan-Growth is a Large Cap Index mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been in existence for 11 years and 7 months, having been launched on 01/01/2013.

ICICI Pru Nifty 50 Index Fund. It is an Index Fund with an AUM of ₹11,115.37 Crores, a 5-year CAGR of 19.07%, no exit load, and an expense ratio of 0.17%. SEBI risk category is Very High. The portfolio includes Cash & Equivalents: 0.15%, and Equity: 99.85%.

SBI Nifty Next 50 Index Fund Direct-Growth

SBI Nifty Next 50 Index Fund Direct-Growth is a Large Cap Index mutual fund scheme from SBI Mutual Fund. This fund has been in existence for 3 years and 3 months, having been launched on 28/04/2021.

SBI Nifty Next 50 Index Fund. It is an Index Fund with an AUM of ₹7,940.91 Crores, a 5-year CAGR of 18.92%, an exit load of 0.2%, and an expense ratio of 0.2%. SEBI risk category is Very High. The portfolio includes Rights: 0.01%, Cash & Equivalents: 0.22%, and Equity: 99.78%.

Axis Nifty 100 Index Fund Direct-Growth

Axis Nifty 100 Index Fund Direct-Growth is a Large Cap Index mutual fund scheme from Axis Mutual Fund. This fund has been in existence for 4 years and 10 months, having been launched on 27/09/2019.

Axis Nifty 100 Index Fund. It is an Index Fund with an AUM of ₹1,650.89 Crores, a 5-year CAGR of 0%, no exit load, and an expense ratio of 0.21%. SEBI risk category is Very High. The portfolio includes Cash & Equivalents: 0.19%, Rights: 0.27%, and Equity: 99.54%.

Kotak Nifty 50 Index Fund Direct-Growth

Kotak Nifty 50 Index Fund Direct-Growth is a Large Cap Index mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 3 years and 2 months, having been launched on 31/05/2021.

Kotak Nifty 50 Index Fund. It is an Index Fund with an AUM of ₹721.21 Crores, a 5-year CAGR of 0%, no exit load, and an expense ratio of 0.15%. SEBI risk category is Very High. The portfolio includes Rights: 0.01%, Cash & Equivalents: 0.21%, and Equity: 99.79%.

Nippon India Index Fund BSE Sensex Plan Direct-Growth

Nippon India Index Fund BSE Sensex Plan Direct-Growth is a Large Cap Index mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 11 years and 7 months, having been launched on 01/01/2013.

Nippon India Index Fund-BSE Sensex Plan. It is an Index Fund with an AUM of ₹711.5 Crores, a 5-year CAGR of 18.3%, an exit load of 0.25%, and an expense ratio of 0.2%. SEBI risk category is Very High. The portfolio includes Cash & Equivalents: 0.20%, and Equity: 99.80%.

Franklin India NSE Nifty 50 Index Direct-Growth

Franklin India NSE Nifty 50 Index Direct-Growth is a Large Cap Index mutual fund scheme from Franklin Templeton Mutual Fund. This fund has been in existence for 11 years and 7 months, having been launched on 01/01/2013.

Franklin India NSE Nifty 50 Index Fund. It is an Index Fund with an AUM of ₹703.56 Crores, a 5-year CAGR of 18.74%, no exit load, and an expense ratio of 0.24%. SEBI risk category is Very High. The portfolio includes Rights: 0.01%, Cash & Equivalents: 0.43%, and Equity: 99.57%.

Top Performing Index Funds in 1 Year – FAQs

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.