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Best Index Mutual Funds for Investments 2025

Updated on September 1, 2025 , 534890 views

Index Funds are no longer just a Western concept — they’re becoming increasingly popular among Indian investors. In fact, index funds and ETFs now account for over 17% of India’s mutual fund industry’s AUM (Assets Under Management) as of 2025, up from less than 4% a decade ago (AMFI data).

Why this surge? Because index funds make Investing simple. Instead of tracking individual stocks, they mirror an index like the Nifty 50 or Sensex, giving investors exposure to India’s top companies with very low costs. Historically, the Nifty 50 TRI has delivered ~13–14% CAGR over the last 10 years, proving that Passive Investing can match or even outperform many actively managed funds.

Index Mutual Funds

But here’s the catch — not all index funds are the same. From broad Market funds to Next 50, sectoral, and even global index funds, each comes with different risk-return profiles. Choosing the right one depends on your goals.

This article will break down the types of index funds in India, compare their performance, and help you understand which option could work best for your portfolio.

What is an Index Fund?

An index fund is a type of mutual fund or ETF that tracks a Market Index. For example -- A Nifty 50 Index Fund holds the same 50 companies in the same proportion as the Nifty 50 index.

If Nifty 50 rises by 1%, the fund’s NAV will also rise by nearly 1% (minus expenses).

Unlike active funds, index funds do not aim to beat the market. Instead, they match the market’s performance with minimal costs.

  1. Low Cost (Expense Ratio) – Since there’s no active management, index funds charge as low as 0.1% – 0.3%, compared to 1% – 2% for active funds.

  2. Market Outperformance by Passive Investing – Many active funds are struggling to beat their benchmarks consistently. Data from SPIVA reports shows over 85% of Large cap funds underperform their benchmarks over 10 years.

  3. Transparency – You always know what you’re investing in.

  4. Ideal for Long-Term Wealth Creation – Perfect for SIP investing and Retirement planning.

Fund Selection Methodology used to find 9 funds

  • AUM Range: 15 to 10000 Cr
  • Keyword: “indexfund”
  • Tags: nifty, sensex
  • No Of Funds: 9

Top 9 Best Performing Index Funds FY 25 - 26

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)
Nippon India Index Fund - Sensex Plan Growth ₹41.0288
↑ 0.21
₹9050.210.9-1.711.716.38.9
LIC MF Index Fund Sensex Growth ₹150.828
↑ 0.76
₹890.110.5-2.311.315.78.2
Franklin India Index Fund Nifty Plan Growth ₹199.456
↑ 1.09
₹7441.112.3-1.512.6179.5
IDBI Nifty Index Fund Growth ₹36.2111
↓ -0.02
₹2089.111.916.220.311.7
Nippon India Index Fund - Nifty Plan Growth ₹41.9647
↑ 0.23
₹2,5721.212.4-1.512.716.99.4
ICICI Prudential Nifty Next 50 Index Fund Growth ₹59.3355
↑ 0.39
₹7,6921.517.3-10.615.519.527.2
IDBI Nifty Junior Index Fund Growth ₹50.0905
↑ 0.33
₹981.617.2-10.515.319.226.9
LIC MF Index Fund Nifty Growth ₹136.691
↑ 0.74
₹333112.1-2.112.216.58.8
Bandhan Nifty Fund Growth ₹53.253
↑ 0.29
₹1,9521.112.3-1.712.617.19.2
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 Sep 25

Research Highlights & Commentary of 9 Funds showcased

CommentaryNippon India Index Fund - Sensex PlanLIC MF Index Fund SensexFranklin India Index Fund Nifty PlanIDBI Nifty Index FundNippon India Index Fund - Nifty PlanICICI Prudential Nifty Next 50 Index FundIDBI Nifty Junior Index FundLIC MF Index Fund NiftyBandhan Nifty Fund
Point 1Upper mid AUM (₹905 Cr).Bottom quartile AUM (₹89 Cr).Lower mid AUM (₹744 Cr).Bottom quartile AUM (₹208 Cr).Top quartile AUM (₹2,572 Cr).Highest AUM (₹7,692 Cr).Bottom quartile AUM (₹98 Cr).Lower mid AUM (₹333 Cr).Upper mid AUM (₹1,952 Cr).
Point 2Established history (14+ yrs).Established history (22+ yrs).Oldest track record among peers (25 yrs).Established history (15+ yrs).Established history (14+ yrs).Established history (15+ yrs).Established history (14+ yrs).Established history (22+ yrs).Established history (15+ yrs).
Point 3Rating: 2★ (upper mid).Rating: 1★ (lower mid).Rating: 1★ (lower mid).Rating: 1★ (bottom quartile).Rating: 1★ (bottom quartile).Top rated.Rating: 5★ (top quartile).Rating: 1★ (bottom quartile).Rating: 2★ (upper mid).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 16.28% (bottom quartile).5Y return: 15.73% (bottom quartile).5Y return: 16.95% (upper mid).5Y return: 11.74% (bottom quartile).5Y return: 16.89% (lower mid).5Y return: 19.46% (top quartile).5Y return: 19.17% (top quartile).5Y return: 16.52% (lower mid).5Y return: 17.11% (upper mid).
Point 63Y return: 11.74% (bottom quartile).3Y return: 11.26% (bottom quartile).3Y return: 12.62% (lower mid).3Y return: 20.28% (top quartile).3Y return: 12.72% (upper mid).3Y return: 15.53% (top quartile).3Y return: 15.33% (upper mid).3Y return: 12.17% (bottom quartile).3Y return: 12.62% (lower mid).
Point 71Y return: -1.73% (lower mid).1Y return: -2.35% (bottom quartile).1Y return: -1.50% (upper mid).1Y return: 16.16% (top quartile).1Y return: -1.49% (top quartile).1Y return: -10.61% (bottom quartile).1Y return: -10.46% (bottom quartile).1Y return: -2.06% (lower mid).1Y return: -1.70% (upper mid).
Point 81M return: 0.05% (bottom quartile).1M return: -0.03% (bottom quartile).1M return: 0.69% (lower mid).1M return: 3.68% (top quartile).1M return: 0.71% (upper mid).1M return: 2.05% (top quartile).1M return: 2.02% (upper mid).1M return: 0.65% (bottom quartile).1M return: 0.70% (lower mid).
Point 9Alpha: -0.51 (top quartile).Alpha: -1.13 (bottom quartile).Alpha: -0.51 (upper mid).Alpha: -1.03 (lower mid).Alpha: -0.50 (top quartile).Alpha: -1.04 (bottom quartile).Alpha: -0.96 (lower mid).Alpha: -1.06 (bottom quartile).Alpha: -0.74 (upper mid).
Point 10Sharpe: -0.46 (lower mid).Sharpe: -0.51 (bottom quartile).Sharpe: -0.43 (top quartile).Sharpe: 1.04 (top quartile).Sharpe: -0.43 (upper mid).Sharpe: -0.74 (bottom quartile).Sharpe: -0.74 (bottom quartile).Sharpe: -0.47 (lower mid).Sharpe: -0.44 (upper mid).

Nippon India Index Fund - Sensex Plan

  • Upper mid AUM (₹905 Cr).
  • Established history (14+ yrs).
  • Rating: 2★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 16.28% (bottom quartile).
  • 3Y return: 11.74% (bottom quartile).
  • 1Y return: -1.73% (lower mid).
  • 1M return: 0.05% (bottom quartile).
  • Alpha: -0.51 (top quartile).
  • Sharpe: -0.46 (lower mid).

LIC MF Index Fund Sensex

  • Bottom quartile AUM (₹89 Cr).
  • Established history (22+ yrs).
  • Rating: 1★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 15.73% (bottom quartile).
  • 3Y return: 11.26% (bottom quartile).
  • 1Y return: -2.35% (bottom quartile).
  • 1M return: -0.03% (bottom quartile).
  • Alpha: -1.13 (bottom quartile).
  • Sharpe: -0.51 (bottom quartile).

Franklin India Index Fund Nifty Plan

  • Lower mid AUM (₹744 Cr).
  • Oldest track record among peers (25 yrs).
  • Rating: 1★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 16.95% (upper mid).
  • 3Y return: 12.62% (lower mid).
  • 1Y return: -1.50% (upper mid).
  • 1M return: 0.69% (lower mid).
  • Alpha: -0.51 (upper mid).
  • Sharpe: -0.43 (top quartile).

IDBI Nifty Index Fund

  • Bottom quartile AUM (₹208 Cr).
  • Established history (15+ yrs).
  • Rating: 1★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 11.74% (bottom quartile).
  • 3Y return: 20.28% (top quartile).
  • 1Y return: 16.16% (top quartile).
  • 1M return: 3.68% (top quartile).
  • Alpha: -1.03 (lower mid).
  • Sharpe: 1.04 (top quartile).

Nippon India Index Fund - Nifty Plan

  • Top quartile AUM (₹2,572 Cr).
  • Established history (14+ yrs).
  • Rating: 1★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 16.89% (lower mid).
  • 3Y return: 12.72% (upper mid).
  • 1Y return: -1.49% (top quartile).
  • 1M return: 0.71% (upper mid).
  • Alpha: -0.50 (top quartile).
  • Sharpe: -0.43 (upper mid).

ICICI Prudential Nifty Next 50 Index Fund

  • Highest AUM (₹7,692 Cr).
  • Established history (15+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 19.46% (top quartile).
  • 3Y return: 15.53% (top quartile).
  • 1Y return: -10.61% (bottom quartile).
  • 1M return: 2.05% (top quartile).
  • Alpha: -1.04 (bottom quartile).
  • Sharpe: -0.74 (bottom quartile).

IDBI Nifty Junior Index Fund

  • Bottom quartile AUM (₹98 Cr).
  • Established history (14+ yrs).
  • Rating: 5★ (top quartile).
  • Risk profile: Moderately High.
  • 5Y return: 19.17% (top quartile).
  • 3Y return: 15.33% (upper mid).
  • 1Y return: -10.46% (bottom quartile).
  • 1M return: 2.02% (upper mid).
  • Alpha: -0.96 (lower mid).
  • Sharpe: -0.74 (bottom quartile).

LIC MF Index Fund Nifty

  • Lower mid AUM (₹333 Cr).
  • Established history (22+ yrs).
  • Rating: 1★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 16.52% (lower mid).
  • 3Y return: 12.17% (bottom quartile).
  • 1Y return: -2.06% (lower mid).
  • 1M return: 0.65% (bottom quartile).
  • Alpha: -1.06 (bottom quartile).
  • Sharpe: -0.47 (lower mid).

Bandhan Nifty Fund

  • Upper mid AUM (₹1,952 Cr).
  • Established history (15+ yrs).
  • Rating: 2★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 17.11% (upper mid).
  • 3Y return: 12.62% (lower mid).
  • 1Y return: -1.70% (upper mid).
  • 1M return: 0.70% (lower mid).
  • Alpha: -0.74 (upper mid).
  • Sharpe: -0.44 (upper mid).

About the Fincash Research Team

At Fincash, our mission is to help investors make informed, confident decisions. With over 9 years in Mutual Fund distribution, our team blends deep industry expertise with a commitment to transparency, accuracy, and investor education.

Who We Are

AMFI Registration No.
112358
MCA CIN
U74999MH2016PTC282153
Location
Thane, Maharashtra, India
Experience
9+ years in Mutual Fund distribution

Our Expertise

  • Certified Mutual Fund Distributors with hands-on advisory experience.
  • Market analysts tracking performance, macro trends, and sectors.
  • Data specialists processing NAVs, allocations, and risk metrics from Morning Star.

Our Research Process

  • Data sourcing: SEBI-registered fund houses & verified third-party provider Morning Star
  • Screening: Returns, manager track record, expenses, sector mix, risk-adjusted metrics.
  • Expert review: Senior team members review every article and list for accuracy.
  • Updates: Regular refreshes so performance data reflects current market conditions.

Why Trust Us

  • Regulated & compliant: AMFI-registered and MCA-incorporated.
  • Investor-first: No pay-to-promote lists; suitability and performance drive coverage.
  • Education-focused: We simplify complex concepts for everyday investors.

Disclaimer

Content is for educational and informational purposes only and is not investment advice. Please consider your risk profile and consult a financial advisor before investing.

All the funds mentioned above are ideal, we are giving you detailed analysis of 5 funds.

1. Nippon India Index Fund - Sensex Plan

The primary investment objective of the scheme is to replicate the composition of the Sensex, with a view to generate returns that are commensurate with the performance of the Sensex, subject to tracking errors.

Research Highlights for Nippon India Index Fund - Sensex Plan

  • Upper mid AUM (₹905 Cr).
  • Established history (14+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 16.28% (lower mid).
  • 3Y return: 11.74% (bottom quartile).
  • 1Y return: -1.73% (bottom quartile).
  • 1M return: 0.05% (bottom quartile).
  • Alpha: -0.51 (upper mid).
  • Sharpe: -0.46 (bottom quartile).
  • Information ratio: -10.42 (bottom quartile).
  • Top sector: Financial Services.
  • Top bond sector: Cash Equivalent.
  • Equity-heavy allocation (~100%).
  • Largest holding HDFC Bank Ltd (~16.0%).
  • Top-3 holdings concentration ~36.9%.

Below is the key information for Nippon India Index Fund - Sensex Plan

Nippon India Index Fund - Sensex Plan
Growth
Launch Date 28 Sep 10
NAV (03 Sep 25) ₹41.0288 ↑ 0.21   (0.51 %)
Net Assets (Cr) ₹905 on 31 Jul 25
Category Others - Index Fund
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderately High
Expense Ratio 0.49
Sharpe Ratio -0.46
Information Ratio -10.42
Alpha Ratio -0.51
Min Investment 5,000
Min SIP Investment 100
Exit Load 0-7 Days (0.25%),7 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Aug 20₹10,000
31 Aug 21₹14,945
31 Aug 22₹15,579
31 Aug 23₹17,049
31 Aug 24₹21,793
31 Aug 25₹21,264

Nippon India Index Fund - Sensex Plan SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹458,689.
Net Profit of ₹158,689
Invest Now

Returns for Nippon India Index Fund - Sensex Plan

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Sep 25

DurationReturns
1 Month 0%
3 Month 0.2%
6 Month 10.9%
1 Year -1.7%
3 Year 11.7%
5 Year 16.3%
10 Year
15 Year
Since launch 9.9%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8.9%
2023 19.5%
2022 5%
2021 22.4%
2020 16.6%
2019 14.2%
2018 6.2%
2017 27.9%
2016 2%
2015 -4.7%
Fund Manager information for Nippon India Index Fund - Sensex Plan
NameSinceTenure
Himanshu Mange23 Dec 231.69 Yr.

Data below for Nippon India Index Fund - Sensex Plan as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash0.33%
Equity99.67%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | HDFCBANK
16%₹145 Cr717,510
↑ 7,998
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | 532174
11%₹100 Cr674,889
↑ 7,523
Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 10 | RELIANCE
10%₹89 Cr640,356
↑ 7,138
Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY
6%₹51 Cr338,087
↑ 3,769
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 10 | BHARTIARTL
5%₹47 Cr248,237
↑ 2,767
Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | LT
4%₹40 Cr110,633
↑ 1,233
ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC
4%₹36 Cr876,408
↑ 9,769
Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Oct 10 | TCS
3%₹29 Cr95,876
↑ 1,068
State Bank of India (Financial Services)
Equity, Since 31 Oct 10 | SBIN
3%₹29 Cr363,189
↑ 4,049
Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | 532215
3%₹29 Cr269,900
↑ 3,009

2. LIC MF Index Fund Sensex

The main investment objective of the fund is to generate returns commensurate with the performance of the index either Nifty / Sensex based on the plans by investing in the respective index stocks subject to tracking errors.

Research Highlights for LIC MF Index Fund Sensex

  • Bottom quartile AUM (₹89 Cr).
  • Established history (22+ yrs).
  • Rating: 1★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 15.73% (bottom quartile).
  • 3Y return: 11.26% (bottom quartile).
  • 1Y return: -2.35% (bottom quartile).
  • 1M return: -0.03% (bottom quartile).
  • Alpha: -1.13 (bottom quartile).
  • Sharpe: -0.51 (bottom quartile).
  • Information ratio: -9.94 (lower mid).
  • Top sector: Financial Services.
  • Top bond sector: Cash Equivalent.
  • Equity-heavy allocation (~99%).
  • Largest holding HDFC Bank Ltd (~16.0%).
  • Top-3 holdings concentration ~36.8%.

Below is the key information for LIC MF Index Fund Sensex

LIC MF Index Fund Sensex
Growth
Launch Date 14 Nov 02
NAV (03 Sep 25) ₹150.828 ↑ 0.76   (0.51 %)
Net Assets (Cr) ₹89 on 31 Jul 25
Category Others - Index Fund
AMC LIC Mutual Fund Asset Mgmt Co Ltd
Rating
Risk Moderately High
Expense Ratio 0.98
Sharpe Ratio -0.51
Information Ratio -9.94
Alpha Ratio -1.13
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-1 Months (1%),1 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Aug 20₹10,000
31 Aug 21₹14,861
31 Aug 22₹15,411
31 Aug 23₹16,834
31 Aug 24₹21,415
31 Aug 25₹20,765

LIC MF Index Fund Sensex SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹447,579.
Net Profit of ₹147,579
Invest Now

Returns for LIC MF Index Fund Sensex

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Sep 25

DurationReturns
1 Month 0%
3 Month 0.1%
6 Month 10.5%
1 Year -2.3%
3 Year 11.3%
5 Year 15.7%
10 Year
15 Year
Since launch 13.1%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8.2%
2023 19%
2022 4.6%
2021 21.9%
2020 15.9%
2019 14.6%
2018 5.6%
2017 27.4%
2016 1.6%
2015 -5.4%
Fund Manager information for LIC MF Index Fund Sensex
NameSinceTenure
Sumit Bhatnagar3 Oct 231.91 Yr.

Data below for LIC MF Index Fund Sensex as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash0.57%
Equity99.43%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | HDFCBANK
16%₹14 Cr70,253
↓ -208
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 09 | 532174
11%₹10 Cr66,076
↓ -246
Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 09 | RELIANCE
10%₹9 Cr62,622
↓ -488
Infosys Ltd (Technology)
Equity, Since 31 Mar 09 | INFY
6%₹5 Cr32,986
↓ -243
Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Apr 09 | BHARTIARTL
5%₹5 Cr24,211
↓ -227
Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Mar 09 | LT
4%₹4 Cr10,783
↓ -205
ITC Ltd (Consumer Defensive)
Equity, Since 30 Sep 11 | ITC
4%₹4 Cr85,533
↓ -773
Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 09 | TCS
3%₹3 Cr9,343
↓ -83
State Bank of India (Financial Services)
Equity, Since 31 Mar 09 | SBIN
3%₹3 Cr35,511
↓ -252
Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | 532215
3%₹3 Cr26,342
↓ -380

3. Franklin India Index Fund Nifty Plan

The Investment Objective of the Scheme is to invest in companies whose securities are included in the Nifty and subject to tracking errors, endeavouring to attain results commensurate with the Nifty 50 under NSENifty Plan

Research Highlights for Franklin India Index Fund Nifty Plan

  • Lower mid AUM (₹744 Cr).
  • Oldest track record among peers (25 yrs).
  • Rating: 1★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 16.95% (top quartile).
  • 3Y return: 12.62% (lower mid).
  • 1Y return: -1.50% (lower mid).
  • 1M return: 0.69% (lower mid).
  • Alpha: -0.51 (lower mid).
  • Sharpe: -0.43 (upper mid).
  • Information ratio: -3.98 (upper mid).
  • Top sector: Financial Services.
  • Top bond sector: Cash Equivalent.
  • Equity-heavy allocation (~99%).
  • Largest holding HDFC Bank Ltd (~13.7%).

Below is the key information for Franklin India Index Fund Nifty Plan

Franklin India Index Fund Nifty Plan
Growth
Launch Date 4 Aug 00
NAV (03 Sep 25) ₹199.456 ↑ 1.09   (0.55 %)
Net Assets (Cr) ₹744 on 31 Jul 25
Category Others - Index Fund
AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating
Risk Moderately High
Expense Ratio 0.63
Sharpe Ratio -0.43
Information Ratio -3.98
Alpha Ratio -0.51
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-30 Days (1%),30 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Aug 20₹10,000
31 Aug 21₹15,047
31 Aug 22₹15,707
31 Aug 23₹17,080
31 Aug 24₹22,459
31 Aug 25₹21,904

Franklin India Index Fund Nifty Plan SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹458,689.
Net Profit of ₹158,689
Invest Now

Returns for Franklin India Index Fund Nifty Plan

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Sep 25

DurationReturns
1 Month 0.7%
3 Month 1.1%
6 Month 12.3%
1 Year -1.5%
3 Year 12.6%
5 Year 17%
10 Year
15 Year
Since launch 12.7%
Historical performance (Yearly) on absolute basis
YearReturns
2024 9.5%
2023 20.2%
2022 4.9%
2021 24.3%
2020 14.7%
2019 12%
2018 3.2%
2017 28.3%
2016 3.3%
2015 -3.6%
Fund Manager information for Franklin India Index Fund Nifty Plan
NameSinceTenure
Sandeep Manam18 Oct 213.87 Yr.
Shyam Sriram26 Sep 240.93 Yr.

Data below for Franklin India Index Fund Nifty Plan as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash0.6%
Equity99.4%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | HDFCBANK
14%₹102 Cr504,120
↑ 3,679
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | ICICIBANK
9%₹70 Cr470,908
↑ 6,932
Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE
8%₹62 Cr447,630
↑ 2,291
Infosys Ltd (Technology)
Equity, Since 29 Feb 12 | INFY
5%₹36 Cr237,582
↑ 1,821
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 04 | BHARTIARTL
5%₹34 Cr179,723
↑ 4,026
Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Jun 12 | LT
4%₹28 Cr77,253
↑ 371
ITC Ltd (Consumer Defensive)
Equity, Since 31 Mar 11 | ITC
3%₹25 Cr612,530
↑ 2,892
Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS
3%₹20 Cr67,193
↑ 306
State Bank of India (Financial Services)
Equity, Since 31 Jan 03 | SBIN
3%₹20 Cr252,787
↑ 1,173
Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 09 | 532215
3%₹20 Cr188,294
↑ 1,150

4. IDBI Nifty Index Fund

The investment objective of the scheme is to invest in the stocks and equity related instruments comprising the S&P CNX Nifty Index in the same weights as these stocks represented in the Index with the intent to replicate the performance of the Total Returns Index of S&P CNX Nifty index. The scheme will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the S&P CNX Nifty index (Total Returns Index) and the scheme.

Research Highlights for IDBI Nifty Index Fund

  • Bottom quartile AUM (₹208 Cr).
  • Established history (15+ yrs).
  • Rating: 1★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 11.74% (bottom quartile).
  • 3Y return: 20.28% (top quartile).
  • 1Y return: 16.16% (top quartile).
  • 1M return: 3.68% (top quartile).
  • Alpha: -1.03 (bottom quartile).
  • Sharpe: 1.04 (top quartile).
  • Information ratio: -3.93 (top quartile).

Below is the key information for IDBI Nifty Index Fund

IDBI Nifty Index Fund
Growth
Launch Date 25 Jun 10
NAV (28 Jul 23) ₹36.2111 ↓ -0.02   (-0.06 %)
Net Assets (Cr) ₹208 on 30 Jun 23
Category Others - Index Fund
AMC IDBI Asset Management Limited
Rating
Risk Moderately High
Expense Ratio 0.9
Sharpe Ratio 1.04
Information Ratio -3.93
Alpha Ratio -1.03
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 Aug 20₹10,000
31 Aug 21₹14,962
31 Aug 22₹15,597

IDBI Nifty Index Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹405,518.
Net Profit of ₹105,518
Invest Now

Returns for IDBI Nifty Index Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Sep 25

DurationReturns
1 Month 3.7%
3 Month 9.1%
6 Month 11.9%
1 Year 16.2%
3 Year 20.3%
5 Year 11.7%
10 Year
15 Year
Since launch 10.3%
Historical performance (Yearly) on absolute basis
YearReturns
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Fund Manager information for IDBI Nifty Index Fund
NameSinceTenure

Data below for IDBI Nifty Index Fund as on 30 Jun 23

Asset Allocation
Asset ClassValue
Top Securities Holdings / Portfolio
NameHoldingValueQuantity

5. Nippon India Index Fund - Nifty Plan

The primary investment objective of the scheme is to replicate the composition of the Nifty 50, with a view to generate returns that are commensurate with the performance of the Nifty 50, subject to tracking errors.

Research Highlights for Nippon India Index Fund - Nifty Plan

  • Highest AUM (₹2,572 Cr).
  • Established history (14+ yrs).
  • Rating: 1★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 16.89% (upper mid).
  • 3Y return: 12.72% (upper mid).
  • 1Y return: -1.49% (upper mid).
  • 1M return: 0.71% (upper mid).
  • Alpha: -0.50 (top quartile).
  • Sharpe: -0.43 (lower mid).
  • Information ratio: -12.83 (bottom quartile).
  • Top sector: Financial Services.
  • Top bond sector: Cash Equivalent.
  • Equity-heavy allocation (~100%).
  • Largest holding HDFC Bank Ltd (~13.7%).

Below is the key information for Nippon India Index Fund - Nifty Plan

Nippon India Index Fund - Nifty Plan
Growth
Launch Date 28 Sep 10
NAV (03 Sep 25) ₹41.9647 ↑ 0.23   (0.55 %)
Net Assets (Cr) ₹2,572 on 31 Jul 25
Category Others - Index Fund
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderately High
Expense Ratio 0.49
Sharpe Ratio -0.43
Information Ratio -12.83
Alpha Ratio -0.5
Min Investment 5,000
Min SIP Investment 100
Exit Load 0-7 Days (0.25%),7 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Aug 20₹10,000
31 Aug 21₹15,027
31 Aug 22₹15,617
31 Aug 23₹16,995
31 Aug 24₹22,385
31 Aug 25₹21,832

Nippon India Index Fund - Nifty Plan SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹458,689.
Net Profit of ₹158,689
Invest Now

Returns for Nippon India Index Fund - Nifty Plan

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Sep 25

DurationReturns
1 Month 0.7%
3 Month 1.2%
6 Month 12.4%
1 Year -1.5%
3 Year 12.7%
5 Year 16.9%
10 Year
15 Year
Since launch 10.1%
Historical performance (Yearly) on absolute basis
YearReturns
2024 9.4%
2023 20.5%
2022 4.6%
2021 24%
2020 14.3%
2019 12.3%
2018 3.5%
2017 29%
2016 2.5%
2015 -3.9%
Fund Manager information for Nippon India Index Fund - Nifty Plan
NameSinceTenure
Himanshu Mange23 Dec 231.69 Yr.

Data below for Nippon India Index Fund - Nifty Plan as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash0.29%
Equity99.71%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | HDFCBANK
14%₹352 Cr1,741,867
↑ 37,902
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | ICICIBANK
9%₹241 Cr1,628,382
↑ 35,432
Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 10 | RELIANCE
8%₹215 Cr1,547,762
↑ 33,678
Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY
5%₹124 Cr822,881
↑ 17,906
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 10 | BHARTIARTL
5%₹119 Cr622,660
↑ 13,549
Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | LT
4%₹98 Cr268,242
↑ 5,837
ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC
3%₹88 Cr2,126,843
↑ 46,278
Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Oct 10 | TCS
3%₹71 Cr233,312
↑ 5,077
State Bank of India (Financial Services)
Equity, Since 31 Oct 10 | SBIN
3%₹70 Cr877,735
↑ 19,099
Axis Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | 532215
3%₹70 Cr653,802
↑ 14,227

Types of Funds in Passive Index Funds

Passive index funds are investment vehicles designed to replicate the performance of a specific market index. Here are the types of funds that fall under the category of passive index funds:

1. Equity Index Funds

These funds track equity indices like the Nifty 50, Sensex, or global indices such as the S&P 500. Examples:

  • Nifty 50 Index Fund
  • Sensex Index Fund
  • S&P 500 Index Fund

2. Exchange-Traded Funds (ETFs)

ETFs are similar to index funds but trade like stocks on exchanges. They track a variety of indices, including:

  • Nifty ETFs
  • Sensex ETFs
  • Nasdaq 100 ETFs

3. Debt Index Funds

These funds replicate the performance of bond indices, providing exposure to fixed-Income securities. Examples:

  • Bharat Bond ETF
  • 10-Year G-Sec Index Fund

4. International Index Funds

These funds provide exposure to foreign markets by tracking indices from other countries or regions. Examples:

  • Nasdaq 100 Index Fund
  • S&P Global 100 Fund

5. Sectoral or Thematic Index Funds

These funds track indices focused on specific sectors or themes, such as IT, banking, or healthcare. Examples:

  • Nifty Bank Index Fund
  • Nifty IT Index Fund

6. Gold ETFs

Though not traditional index funds, gold ETFs function like Passive Funds by tracking the price of gold.

7. Multi-Asset Passive Funds

These funds passively invest in a combination of asset classes, such as equity, debt, and gold, based on predefined indices.

Why to Invest in Index Funds in India?

Some of the benefits of investing in Index Funds are:

1. Diversification

An index is a collection of different stocks and securities. They offer diversification to the investor which is the main motive of Asset Allocation. This ensures that the investor does not have all their eggs in one basket.

2. Less Expenses

Index funds have lower operating expenses compared to other mutual fund schemes. Here, the fund managers do not require a separate team of research analysts to carry out in-depth research of the companies, which usually involves significant costs. In index funds, the manager just needs to replicate the index. Therefore, the expense ratio is lower in the case of index funds.

3. Less Managerial Influence

Since the fund simply follows the movement of a particular index, the manager doesn’t have to choose what stocks to invest in. This is a plus point since the manager’s own style of investing (which may not always align with market trends) does not influence the fund.

Type of Index Mutual Funds

The weightage of a company in the Sensex or Nifty depends on its free float market capitalization. It is a percentage of the total market capitalization of the index. So, if the market capitalization of a company is Rs 1 crore, while that of the index is Rs 200 crore, its stock has a weightage of 0.5%.

1. SENSEX Index Funds

These index funds track the BSE SENSEX as the benchmark index and invest in 30 companies on the BSE Sensex based on weightage logic as discussed above. These Types of Mutual Funds are backed by ETFs (Exchange Traded Fund) traded on the exchange.

2. NIFTY Index Funds

These index funds track the NSE NIFTY 50 as the benchmark index and invest in 50 companies on the Nifty 50 based on weightage logic as discussed above. These types of Mutual Funds are backed by ETFs (Exchange Traded Funds) traded on the exchange.

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3. NIFTY Junior Index Funds

These index funds track the NSE NIFTY Junior 50 as the benchmark index and invest in 50 companies on the NSE NIFTY Junior 50 based on weightage logic as discussed above. These types of mutual funds are backed by ETFs (Exchange Traded Funds) traded on the exchange.

Types of Passive Index Funds in India

Passive index funds are mutual funds designed to mirror the performance of a particular market index rather than trying to beat it. They provide a low-cost, transparent, and efficient way for investors to participate in equity, debt, or even commodity markets.

Below are the major types of passive index funds available in India:

1. Equity Index Funds

These funds track stock market indices like the Nifty 50, Sensex, or international benchmarks such as the S&P 500. They are ideal for investors seeking equity exposure with long-term growth potential.

Examples:

  • Nifty 50 Index Fund
  • Sensex Index Fund
  • S&P 500 Index Fund (FoF in India)

2. Exchange-Traded Funds (ETFs)

ETFs function like index funds but trade on stock exchanges similar to shares. They offer liquidity and real-time pricing.

Examples:

  • Nifty ETFs
  • Sensex ETFs
  • Nasdaq 100 ETFs

3. Debt Index Funds

These funds replicate bond or fixed-income indices, giving investors predictable returns and portfolio stability.

Examples:

  • Bharat Bond ETF
  • 10-Year G-Sec Index Fund

4. International Index Funds

International index funds invest in global markets, helping Indian investors diversify beyond domestic equities.

Examples:

  • Nasdaq 100 Index Fund
  • S&P Global 100 Fund

5. Sectoral or Thematic Index Funds

These funds track sector-specific indices, Offering targeted exposure to industries like banking, IT, or healthcare.

Examples:

  • Nifty Bank Index Fund
  • Nifty IT Index Fund

6. Gold ETFs

Gold ETFs passively track the price of gold. Though not traditional stock indices, they provide an effective hedge against Inflation and market volatility.

7. Multi-Asset Passive Funds

These funds invest across multiple asset classes such as equity, debt, and gold in predefined proportions, offering balanced diversification.

Why Should You Invest in Index Funds in India?

Index funds are gaining popularity among Indian investors due to their simplicity, transparency, and low cost. Here are some reasons why they can be a strong choice:

1. Diversification

Since index funds track a basket of securities, investors get automatic diversification across multiple companies and sectors. This reduces the risk of relying too much on one stock.

2. Low Expense Ratio

Unlike actively managed funds, index funds don’t require high-cost research teams. Fund managers simply replicate the index, keeping expense ratios typically between 0.1%–0.5%, compared to 1.5%–2% for active funds.

3. Minimal Human Bias

Because they follow an index, index funds are free from a manager’s subjective biases or misjudgments. Returns purely depend on market performance.

The weightage of companies in Nifty or Sensex depends on free-float market capitalization. Here are some common index fund categories:

1. Sensex Index Funds

Track the BSE Sensex, replicating 30 large companies.

2. Nifty 50 Index Funds

Track the Nifty 50, replicating India’s 50 most valuable companies.

3. Nifty Next 50 Index Funds

Track the Nifty Next 50, i.e., companies ranked 51–100 by market cap. These offer higher growth potential but come with higher risk.

Why Passive Index Funds Are Gaining Popularity

The shift towards passive investing is visible globally and in India.

  • In 2024, Gold ETFs in India saw 63% AUM growth, reaching ₹44,595 crore by December (AMFI data).

  • More than 300 passive funds delivered up to 51% returns in 2024, led by Mirae Asset NYSE FANG+ ETF (50.9%), Motilal Oswal Healthcare ETF (40.6%), and CPSE ETF (37.8%).

  • Passive mutual funds in India attracted ₹1.32 lakh crore inflows in 2024, with AUM crossing ₹11 lakh crore by September — a 1.5x growth in just one year.

This growth reflects investors’ increasing trust in cost-effective, low-maintenance investment strategies.

Passive Funds vs Active Funds

Here’s a quick comparison:

Passive Funds Active Funds
Replicate an index, no active stock picking Fund managers actively select securities
Lower expense ratio (0.1%–0.5%) Higher expense ratio (1.5%–2%)
Transparent and rule-based Subject to fund manager’s style & bias
Growing popularity due to lower costs May outperform in niche/volatile markets

Risks of Investing in Index Funds

While index funds are cost-efficient, they are not risk-free.

  • Market Risk: Returns depend entirely on index performance. If the market falls, so does the NAV.

  • No Flexibility: Since funds can’t deviate from the index, they may miss opportunities outside of it.

  • Tracking Error: Slight deviations from the index due to expenses or fund structure.

Experts suggest allocating 5–10% of your portfolio to index funds for long-term wealth creation while balancing risks.

How to Invest in Index Mutual Funds Online?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

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FAQs

1. Why invest in index mutual funds?

A: They reduce stock-specific risks, offer diversification, and are suitable for long-term investors.

2. How to select the right index fund?

A: Check expense ratio, tracking error, fund house reputation, and long-term performance.

3. Do index funds guarantee returns?

A: No. They replicate the market index and are subject to market fluctuations.

4. Are dividends paid?

A: Some index funds offer dividend options, but most investors prefer growth plans for compounding.

5. Who should invest?

A: Ideal for risk-averse investors, beginners, and those looking for long-term wealth creation at low costs.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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PRITI AMIN, posted on 7 Aug 20 3:10 PM

Quite detailed review which helps in deciding which is a better performing index fund

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