Top Performing Index Funds in 5 Years

The below table shows a list Of the Top Performing Index Funds in 5 Years based on AUM, NAV and minimum SIP.

Introduction to Top Performing Index Funds in 5 Years

Kotak Equity Opportunities Fund  

Kotak Equity Opportunities Fund is a Large & MidCap mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Kotak Equity Opportunities Fund falls under the Large & MidCap category with an AUM of ₹24,055.26 crores, a 5-year CAGR of 26.32%, an exit load of 1% and an expense ratio of 0.47%. The SEBI risk category is Very High. Its asset allocation includes 0.07% in Rights, 0.31% in Mutual Funds, 1.16% in Cash & Equivalents and 98.45% in Equity.

Canara Robeco Emerging Equities Fund  

Canara Robeco Emerging Equities Fund is a Large & MidCap mutual fund scheme from Canara Robeco Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Canara Robeco Emerging Equities Fund falls under the Large & MidCap category with an AUM of ₹23,816.11 crores, a 5-year CAGR of 26.10%, an exit load of 1% and an expense ratio of 0.55%. The SEBI risk category is Very High. Its asset allocation includes 2.08% in Cash & Equivalents and 97.92% in Equity.

HDFC Large and Mid Cap Fund  

HDFC Large and Mid Cap Fund is a Large & MidCap mutual fund scheme from HDFC Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

HDFC Large and Mid Cap Fund falls under the Large & MidCap category with an AUM of ₹21,459.36 crores, a 5-year CAGR of 27.77%, an exit load of 1% and an expense ratio of 0.82%. The SEBI risk category is Very High. Its asset allocation includes 0.02% in Rights, 0.16% in Mutual Funds, 0.38% in REITs & InvIT, 1.98% in Cash & Equivalents and 97.46% in Equity.

ICICI Prudential Large & Mid Cap Fund  

ICICI Prudential Large & Mid Cap Fund is a Large & MidCap mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

ICICI Prudential Large & Mid Cap Fund falls under the Large & MidCap category with an AUM of ₹14,485.78 crores, a 5-year CAGR of 27.61%, an exit load of 1%, and an expense ratio of 0.82%. The SEBI risk category is Very High. Its asset allocation includes 0.03% in Rights, 1.25% in Treasury Bills, 3.83% in Cash & Equivalents and 94.89% in Equity.

Axis Growth Opportunities Fund  

Axis Growth Opportunities Fund is a Large & MidCap mutual fund scheme from Axis Mutual Fund. This fund has been operational for 5 years and 11 months, having been launched on October 1, 2018.

Axis Growth Opportunities Fund falls under the Large & MidCap category with an AUM of ₹13,883.28 crores, a 5-year CAGR of 26.67%, an exit load of 1% and an expense ratio of 0.56%. The SEBI risk category is Very High. Its asset allocation includes 0.14% in ADR & GDR, 0.46% in Cash & Equivalents, 1.84% in Mutual Funds and 97.56% in Equity. 

Bandhan Core Equity Fund  

Bandhan Core Equity Fund is a Large & MidCap mutual fund scheme from Bandhan Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Bandhan Core Equity Fund falls under the Large & MidCap category with an AUM of ₹5,360.46 crores, a 5-year CAGR of 28.53%, an exit load of 1% and an expense ratio of 0.67%. The SEBI risk category is Very High. Its asset allocation includes 4.63% in Cash & Equivalents and 95.37% in Equity.

UTI Large & Mid Cap Fund  

UTI Large & Mid Cap Fund is a Large & MidCap mutual fund scheme from UTI Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

UTI Large & Mid Cap Fund falls under the Large & MidCap category with an AUM of ₹3,748.61 crores, a 5-year CAGR of 26.96%, an exit load of 1% and an expense ratio of 1.16%. The SEBI risk category is Very High. Its asset allocation includes 0.10% in Treasury Bills, 0.46% in Rights, 4.80% in Cash & Equivalents and 94.64% in Equity.

Edelweiss Large & Mid Cap Fund  

Edelweiss Large & Mid Cap Fund is a Large & MidCap mutual fund scheme from Edelweiss Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Edelweiss Large & Mid Cap Fund falls under the Large & MidCap category with an AUM of ₹3,393.29 crores, a 5-year CAGR of 26.30%, an exit load of 1% and an expense ratio of 0.46%. The SEBI risk category is Very High. Its asset allocation includes 2.26% in Cash & Equivalents and 97.74% in Equity.

HSBC Large & Mid Cap Fund  

HSBC Large & Mid Cap Fund is a Large & MidCap mutual fund scheme from HSBC Mutual Fund. This fund has been operational for 5 years and 6 months, having been launched on March 11, 2019.

HSBC Large & Mid Cap Fund falls under the Large & MidCap category with an AUM of ₹3,382.75 crores, a 5-year CAGR of 26.21%, an exit load of 1% and an expense ratio of 0.90%. The SEBI risk category is Very High. Its asset allocation includes 0.06% in Rights, 1.33% in Cash & Equivalents and 98.61% in Equity.

Quant Large & Mid Cap Fund  

Quant Large & Mid Cap Fund is a Large & MidCap mutual fund scheme from Quant Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Quant Large & Mid Cap Fund falls under the Large & MidCap category with an AUM of ₹3,290.34 crores, a 5-year CAGR of 32.72%, an exit load of 1% and an expense ratio of 0.61%. The SEBI risk category is Very High. Its asset allocation includes 0.91% in Cash & Equivalents, 6.94% in Futures & Options, 7.08% in Treasury Bills and 85.07% in Equity.

What Are Index Funds?

Index Funds are a type of mutual fund or exchange-traded fund (ETF) designed to track the performance of a specific market index, such as the S&P 500 or Nifty 50. These funds aim to replicate the returns of the underlying index by investing in the same securities in approximately the same proportions.

Index Funds follow a passive investment strategy, meaning they don’t try to outperform the market but rather match its performance. This approach typically results in lower operating costs and fees compared to actively managed funds.

These funds offer investors broad market exposure, diversification, and generally lower risk compared to individual stock picking. They are suitable for investors seeking long-term growth and those who believe in the efficiency of markets.

Features Of Top Performing Index Funds in 5 Years

The main features of top-performing Index Funds in 5 years include low costs, broad market exposure, passive management, transparency and tax efficiency. These funds aim to replicate the performance of a specific market index, offering investors a simple way to invest in the overall market.

• Low costs: Index Funds typically have lower expense ratios compared to actively managed funds, as they don’t require extensive research or frequent trading.

• Broad market exposure: These funds provide diversification by investing in a wide range of securities that make up the underlying index, reducing single-stock risk.

• Passive management: Index Funds follow a rules-based approach, aiming to match the performance of the benchmark index rather than trying to outperform it.

• Transparency: The holdings of Index Funds are generally known and align with the composition of the underlying index, providing clarity to investors.

Best Performing Index Funds in 5 Years

The table below shows the Best Performing Index Funds in 5 Years based on the lowest to highest expense ratio.

Top Performing Index Funds in 5 Years In India

The table below shows the top-performing index Funds in 5 Years In India Based on the Highest 3Y CAGR.

Top Performing Index Funds in 5 Years List

The table below shows the Top Performing Index Funds in the 5 Years 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 5 Years

The main factors to consider when investing in top-performing Index Funds in 5 years include tracking error, expense ratio, fund size, underlying index and liquidity. These factors can significantly impact the fund’s performance and suitability for your portfolio.

• Tracking error: Look for funds with low tracking error, indicating how closely the fund follows its benchmark index. Lower tracking error suggests better index replication.

• Expense ratio: Compare expense ratios across different index funds. Lower expenses can contribute to better overall returns, as index funds aim to match market performance.

• Fund size: Larger funds may have better economies of scale, potentially leading to lower costs. However, very large funds might face challenges in exact index replication.

• Underlying index: Choose an index that aligns with your investment goals and risk tolerance. Different indices offer exposure to various market segments or sectors.

• Liquidity: Consider the fund’s trading volume and bid-ask spreads, especially for ETFs. Higher liquidity can lead to easier buying and selling at fair prices.

How To Invest In Top Performing Index Funds in 5 Years?

To invest in top-performing Index Funds in 5 years, start by researching and comparing different funds based on their tracking error, expense ratios, and the indices they follow. Once you’ve selected a fund that aligns with your financial goals and risk tolerance, you can invest through Alice Blue.

Alice Blue is a user-friendly online investment platform that provides tools and resources to help you make informed investment decisions. You can choose to invest a lump sum amount or opt for a Systematic Investment Plan (SIP), which allows you to invest a fixed amount regularly.

For most investors, a SIP is recommended as it helps in rupee cost averaging and reduces the impact of market volatility on your investment over time. Remember to review and rebalance your investment periodically to ensure it remains aligned with your financial goals.

Advantages Of Investing In Top Performing Index Funds in 5 Years?

The main advantages of investing in top-performing Index Funds in 5 years include low costs, broad market exposure, simplicity, transparency and potential for consistent returns. These funds offer a straightforward way to invest in the overall market performance.

• Low costs: Index Funds typically have lower expense ratios compared to actively managed funds, potentially leading to better long-term returns for investors.

• Broad market exposure: These funds provide instant diversification by investing in a wide range of securities that make up the underlying index.

• Simplicity: Index Funds offer a straightforward investment approach, making them suitable for both novice and experienced investors.

• Transparency: The holdings of Index Funds are generally known and align with the composition of the underlying index, providing clarity to investors.

Risks Of Investing In Top Performing Index Funds in 5 Years?

The main risks of investing in top-performing Index Funds in 5 years include market risk, lack of downside protection, tracking error and potential underperformance in certain market conditions. While generally considered lower risk, these funds are not without potential drawbacks.

• Market risk: Index Funds are subject to overall market fluctuations. When the market declines, these funds will also decrease in value.

• Lack of downside protection: Unlike actively managed funds, Index Funds don’t attempt to minimize losses during market downturns.

• Tracking error: There may be slight differences between the fund’s performance and the underlying index due to various factors.

• Potential underperformance: In certain market conditions, actively managed funds may outperform Index Funds, leading to opportunity costs for investors.

Importance of Index Funds

The main importance of Index Funds lies in their ability to provide broad market exposure, offer low-cost investing options, simplify investment decisions and deliver consistent long-term returns. These funds play a crucial role in many investors’ portfolios.

• Broad market exposure: Index Funds allow investors to easily gain exposure to entire market segments or sectors through a single investment.

• Cost-effective investing: With lower expense ratios, Index Funds can help investors keep more of their returns over the long term.

• Simplicity: These funds offer a straightforward way to invest, making them accessible to both novice and experienced investors.

• Consistent performance: By tracking market indices, Index Funds aim to deliver returns that consistently match overall market performance.

How Long Can You Stay Invested in Index Funds?

The ideal investment horizon for Index Funds is typically long-term, often 5-10 years or more. This extended time frame allows investors to benefit from the overall growth of the market and helps smooth out short-term market volatility. Index Funds are designed to capture market returns over time.

However, the exact duration can vary based on individual financial goals and market conditions. Regular investments through SIPs can be an effective strategy for long-term wealth creation with Index Funds. It’s important to periodically review and rebalance your portfolio to ensure it aligns with your changing financial objectives.

Tax Implications of Investing in Index Funds

Index Funds are taxed based on their underlying assets and structure. For equity Index Funds, gains are taxed as per equity mutual fund rules in India. Short-term capital gains (holding period ≤ 1 year) are taxed at 15%, while long-term capital gains (> 1 year) up to ₹1 lakh per year are tax-free.

Long-term capital gains exceeding ₹1 lakh are taxed at 10% without indexation benefits. For debt Index Funds, gains are taxed as per debt fund rules, with different rates for short-term and long-term gains. It’s important to consider these tax implications when planning your investment strategy.

Future of Index Funds

The future of Index Funds in India looks promising, driven by factors such as increasing investor awareness, growing preference for low-cost investment options and the potential for consistent market-linked returns. As the Indian financial markets mature, Index Funds are likely to gain more popularity among retail and institutional investors.

However, their growth may be influenced by factors such as regulatory changes, the development of new indices and innovations in passive investing strategies. The increasing adoption of technology in financial services may also lead to more efficient and accessible Index Fund offerings in the future.

Top Performing Index Funds in 5 Years – 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.