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Table of Contents
- Why to Invest in Index Funds in India?
- Type of Index Mutual Funds
- Top 9 Best Performing Index Funds FY 23 - 24
- Why Passive Index Funds are Better?
- Passive Funds - Safe Heaven Amidst Coronavirus Pandemic
- Passive Funds Vs Active Funds
- Risks of Investing In Index Funds
- How to Invest in Index Mutual Funds Online?
- FAQs
- 1. Why should you invest in index mutual funds?
- 2. How to select a particular index MF?
- 3. What is the main advantage of investing in an Index fund?
- 4. How much to expect from SBI Nifty Index Fund?
- 5. What can you expect if you invest in ICICI Prudential Nifty Index Fund?
- 6. How do Index Funds add to diversification?
- 7. When should you consider investing in Index funds?
- 8. Is there some way that I can select the best Index fund?
- 9. Who is ideally suited to invest in Index Funds?
Top 9 Others - Index Fund Funds
Best Index Mutual Funds for Investments 2023
Index Funds refer to the Mutual Fund schemes whose Portfolio is constructed using a Market index as a base. In other words, the performance of an index fund is dependent on the performance of a particular index. These schemes are passively managed. These funds contain shares in the similar proportion as they are in a particular index.
In India, many of the schemes use Nifty or Sensex as the base to construct their portfolio. For example, if the Nifty portfolio constitutes of SBI shares whose proportion is 12% then; the Nifty Index fund will also have 12% equity shares.
They passively track the performance of a particular index. Unlike actively-managed funds, index funds are not meant to outperform the market, but mimic the performance of the index. When an investor is planning to invest in index funds, they should pay attention to the tracking error of the fund. The tracking error measures the deviation of fund return from benchmark it is tracking. It is the difference between the index fund return and its benchmark return. The lower the tracking error, the better the fund’s performance.
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 his eggs in one basket.
2. Less Expenses
Index fund has a lower operating expenses as compared to other mutual fund schemes. Here, the fund managers need not have a separate team of research analysts to carry out an in-depth research of the companies against, which a significant amount is spent. In index funds, the manager just needs to replicate the index. Therefore, the expense ratio is lower in case of index funds.
3. Less Managerial Influence
Since the fund simply follows the movement of the 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 be in sync with the market at times) does not creep in.
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 if Rs 200 crore, its stock has a weightage of 0.5%.
1. SENSEX Index Funds
These index funds track BSE SENSEX as bechmark index & invest in 30 companies on BSE Sensex based on weightage login as discussed above. These Types of Mutual Funds are backed by ETF's (Exchange Traded Fund) traded on exchange.
2. NIFTY Index Funds
These index funds track NSE NIFTY 50 as bechmark index & invest in 50 companies on Nifty 50 based on weightage login as discussed above. These types of Mutual Funds are backed by ETF's (Exchange Traded Funds) traded on exchange.
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3. NIFTY Junior Index Funds
These index funds track NSE NIFTY Junior 50 as bechmark index & invest in 50 companies on NSE NIFTY Junior 50 based on weightage login as discussed above. These types of mutual funds are backed by ETF's (Exchange Traded Funds) traded on exchange.
Top 9 Best Performing Index Funds FY 23 - 24
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2022 (%) Nippon India Index Fund - Sensex Plan Growth ₹30.385
↑ 0.46 ₹361 -0.1 4.2 4 15.7 12.1 5 LIC MF Index Fund Sensex Growth ₹113.2
↑ 1.72 ₹70 0 4.2 3.6 15.2 11.7 4.6 ICICI Prudential Nifty Index Fund Growth ₹175.96
↑ 2.39 ₹3,927 -1.2 2.8 2.4 15.7 11.2 5.2 UTI Nifty Index Fund Growth ₹119.964
↑ 1.63 ₹9,337 -1.2 2.9 2.6 16 11.7 5.3 Franklin India Index Fund Nifty Plan Growth ₹141.931
↑ 1.92 ₹502 -1.3 2.7 2.3 15.3 10.8 4.9 SBI Nifty Index Fund Growth ₹154.918
↑ 2.11 ₹3,168 -1.2 2.7 2.4 15.5 11.1 5.1 IDBI Nifty Index Fund Growth ₹32.8137
↑ 0.45 ₹201 -1.3 2.5 2 15 10.6 4.7 Nippon India Index Fund - Nifty Plan Growth ₹29.7883
↑ 0.41 ₹634 -1.2 2.7 2 15 10.7 4.6 ICICI Prudential Nifty Next 50 Index Fund Growth ₹33.8483
↓ 0.00 ₹2,585 -10.7 -7.5 -8.3 11.6 5.3 0.1 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 Feb 23
*Below is the list for Index Mutual Funds having atleast 15 Crore or more in Net Assets.
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. Nippon India Index Fund - Sensex Plan is a Others - Index Fund fund was launched on 28 Sep 10. It is a fund with Moderately High risk and has given a Below is the key information for Nippon India Index Fund - Sensex Plan Returns up to 1 year are on 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. LIC MF Index Fund Sensex is a Others - Index Fund fund was launched on 14 Nov 02. It is a fund with Moderately High risk and has given a Below is the key information for LIC MF Index Fund Sensex Returns up to 1 year are on (Erstwhile ICICI Prudential Nifty Index Fund) An open-ended index linked growth scheme seeking to track the returns of the S&P CNX Nifty index through investment in a basket of stocks drawn from the constituents of the Nifty. ICICI Prudential Nifty Index Fund is a Others - Index Fund fund was launched on 26 Feb 02. It is a fund with Moderately High risk and has given a Below is the key information for ICICI Prudential Nifty Index Fund Returns up to 1 year are on The principal investment objective of the scheme is to invest in stocks of companies comprising Nifty 50 Index and endeavour to achieve return equivalent to Nifty 50 by “passive” investment. The scheme will be managed
by replicating the index in the same weightage as in the Nifty 50 Index with the intention of minimising the performance differences between the scheme and the Nifty 50 Index in capital terms, subject to market liquidity, costs of trading, management expenses and other factors which may cause tracking error. The
scheme would alter the scrips/weights as and when the same are altered in the Nifty 50 Index. UTI Nifty Index Fund is a Others - Index Fund fund was launched on 6 Mar 00. It is a fund with Moderately High risk and has given a Below is the key information for UTI Nifty Index Fund Returns up to 1 year are on 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 Franklin India Index Fund Nifty Plan is a Others - Index Fund fund was launched on 4 Aug 00. It is a fund with Moderately High risk and has given a Below is the key information for Franklin India Index Fund Nifty Plan Returns up to 1 year are on The scheme will adopt a passive investment strategy. The scheme will
invest in stocks comprising the Nifty 50 Index in the same proportion as in the
index with the objective of achieving returns equivalent to the Total Returns
Index of Nifty 50 Index by minimizing the performance difference between the
benchmark index and the scheme. The Total Returns Index is an index that
reflects the returns on the index from index gain/loss plus dividend payments
by the constituent stocks. SBI Nifty Index Fund is a Others - Index Fund fund was launched on 17 Jan 02. It is a fund with Moderately High risk and has given a Below is the key information for SBI Nifty Index Fund Returns up to 1 year are on 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. IDBI Nifty Index Fund is a Others - Index Fund fund was launched on 25 Jun 10. It is a fund with Moderately High risk and has given a Below is the key information for IDBI Nifty Index Fund Returns up to 1 year are on 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. Nippon India Index Fund - Nifty Plan is a Others - Index Fund fund was launched on 28 Sep 10. It is a fund with Moderately High risk and has given a Below is the key information for Nippon India Index Fund - Nifty Plan Returns up to 1 year are on The fund's objective is to invest in companies whose securities are included in Nifty Junior Index and to endeavor to achieve the returns of the above index as closely as possible, though subject to tracking error. The fund intends to track only 90-95% of the Index i.e. it will always keep cash balance between 5-10% of the Net Asset to meet the redemption and other liquidity requirements. However, as and when the liquidity in the Index improves the fund intends to track up to 100% of the Index. The fund will not seek to outperform the CNX Nifty Junior. The objective is that the performance of the NAV of the fund should closely track the performance of the CNX Nifty Junior over the same period subject to tracking error. ICICI Prudential Nifty Next 50 Index Fund is a Others - Index Fund fund was launched on 25 Jun 10. It is a fund with Moderately High risk and has given a Below is the key information for ICICI Prudential Nifty Next 50 Index Fund Returns up to 1 year are on 1. Nippon India Index Fund - Sensex Plan
CAGR/Annualized return of 9.4% since its launch. Ranked 74 in Index Fund category. Return for 2022 was 5% , 2021 was 22.4% and 2020 was 16.6% . Nippon India Index Fund - Sensex Plan
Growth Launch Date 28 Sep 10 NAV (03 Feb 23) ₹30.385 ↑ 0.46 (1.54 %) Net Assets (Cr) ₹361 on 31 Dec 22 Category Others - Index Fund AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 0.51 Sharpe Ratio 0.07 Information Ratio -1.93 Alpha Ratio -0.72 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.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹10,105 31 Jan 20 ₹11,343 31 Jan 21 ₹12,988 31 Jan 22 ₹16,339 31 Jan 23 ₹16,860 Returns for Nippon India Index Fund - Sensex Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Feb 23 Duration Returns 1 Month -0.8% 3 Month -0.1% 6 Month 4.2% 1 Year 4% 3 Year 15.7% 5 Year 12.1% 10 Year 15 Year Since launch 9.4% Historical performance (Yearly) on absolute basis
Year Returns 2022 5% 2021 22.4% 2020 16.6% 2019 14.2% 2018 6.2% 2017 27.9% 2016 2% 2015 -4.7% 2014 28.7% 2013 9.8% Fund Manager information for Nippon India Index Fund - Sensex Plan
Name Since Tenure Mehul Dama 6 Nov 18 4.15 Yr. Data below for Nippon India Index Fund - Sensex Plan as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 0.03% Equity 99.97% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 10 | 50032513% ₹46 Cr 179,562
↑ 7,361 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | 50018010% ₹37 Cr 229,181
↑ 10,040 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | 5321749% ₹32 Cr 362,844
↑ 15,527 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | 5002098% ₹29 Cr 190,516
↑ 7,810 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Oct 10 | 5000107% ₹25 Cr 94,580
↑ 4,020 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Oct 10 | 5325405% ₹17 Cr 53,320
↑ 2,186 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | 5008754% ₹15 Cr 458,334
↑ 19,664 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Jun 17 | 5002474% ₹14 Cr 74,405
↑ 3,051 Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | 5322154% ₹13 Cr 143,938
↑ 5,969 Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | 5005104% ₹13 Cr 62,893
↑ 2,579 2. LIC MF Index Fund Sensex
CAGR/Annualized return of 13.3% since its launch. Ranked 79 in Index Fund category. Return for 2022 was 4.6% , 2021 was 21.9% and 2020 was 15.9% . LIC MF Index Fund Sensex
Growth Launch Date 14 Nov 02 NAV (03 Feb 23) ₹113.2 ↑ 1.72 (1.54 %) Net Assets (Cr) ₹70 on 31 Dec 22 Category Others - Index Fund AMC LIC Mutual Fund Asset Mgmt Co Ltd Rating ☆ Risk Moderately High Expense Ratio 0.99 Sharpe Ratio 0.05 Information Ratio -4.2 Alpha Ratio -1.1 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.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹10,062 31 Jan 20 ₹11,330 31 Jan 21 ₹12,902 31 Jan 22 ₹16,159 31 Jan 23 ₹16,614 Returns for LIC MF Index Fund Sensex
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Feb 23 Duration Returns 1 Month -0.8% 3 Month 0% 6 Month 4.2% 1 Year 3.6% 3 Year 15.2% 5 Year 11.7% 10 Year 15 Year Since launch 13.3% Historical performance (Yearly) on absolute basis
Year Returns 2022 4.6% 2021 21.9% 2020 15.9% 2019 14.6% 2018 5.6% 2017 27.4% 2016 1.6% 2015 -5.4% 2014 29.3% 2013 9.2% Fund Manager information for LIC MF Index Fund Sensex
Name Since Tenure Jaiprakash Toshniwal 6 Sep 21 1.32 Yr. Data below for LIC MF Index Fund Sensex as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 0.06% Equity 99.94% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 09 | 50032513% ₹9 Cr 34,767
↑ 5,785 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | 50018010% ₹7 Cr 44,267
↑ 7,324 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 09 | 5321749% ₹6 Cr 70,715
↑ 11,888 Infosys Ltd (Technology)
Equity, Since 31 Mar 09 | 5002098% ₹6 Cr 36,695
↑ 5,831 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 09 | 5000107% ₹5 Cr 18,311
↑ 3,043 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 09 | 5325405% ₹3 Cr 10,321
↑ 1,693 ITC Ltd (Consumer Defensive)
Equity, Since 30 Sep 11 | 5008754% ₹3 Cr 88,948
↑ 14,992 Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | 5322154% ₹3 Cr 28,197
↑ 4,948 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Jun 17 | 5002474% ₹3 Cr 14,385
↑ 2,349 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Mar 09 | 5005104% ₹3 Cr 12,194
↑ 2,011 3. ICICI Prudential Nifty Index Fund
CAGR/Annualized return of 14.7% since its launch. Ranked 71 in Index Fund category. Return for 2022 was 5.2% , 2021 was 24.9% and 2020 was 15.2% . ICICI Prudential Nifty Index Fund
Growth Launch Date 26 Feb 02 NAV (03 Feb 23) ₹175.96 ↑ 2.39 (1.38 %) Net Assets (Cr) ₹3,927 on 31 Dec 22 Category Others - Index Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.41 Sharpe Ratio 0.08 Information Ratio -6.09 Alpha Ratio -0.51 Min Investment 5,000 Min SIP Investment 100 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹9,853 31 Jan 20 ₹10,961 31 Jan 21 ₹12,524 31 Jan 22 ₹16,027 31 Jan 23 ₹16,450 Returns for ICICI Prudential Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Feb 23 Duration Returns 1 Month -2.1% 3 Month -1.2% 6 Month 2.8% 1 Year 2.4% 3 Year 15.7% 5 Year 11.2% 10 Year 15 Year Since launch 14.7% Historical performance (Yearly) on absolute basis
Year Returns 2022 5.2% 2021 24.9% 2020 15.2% 2019 12.8% 2018 3.4% 2017 28.7% 2016 3.6% 2015 -3.6% 2014 32.5% 2013 7.9% Fund Manager information for ICICI Prudential Nifty Index Fund
Name Since Tenure Kayzad Eghlim 1 Aug 09 13.42 Yr. Nishit Patel 18 Jan 21 1.95 Yr. Data below for ICICI Prudential Nifty Index Fund as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 0.11% Equity 99.89% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 05 | RELIANCE11% ₹431 Cr 1,691,032
↑ 45,170 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | HDFCBANK9% ₹352 Cr 2,159,203
↑ 60,206 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | ICICIBANK8% ₹305 Cr 3,419,142
↑ 95,570 Infosys Ltd (Technology)
Equity, Since 31 Mar 05 | INFY7% ₹271 Cr 1,794,272
↑ 48,041 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 12 | HDFC6% ₹233 Cr 883,810
↑ 18,717 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 05 | TCS4% ₹164 Cr 502,124
↑ 13,404 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC4% ₹143 Cr 4,319,125
↑ 119,759 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 29 Feb 12 | KOTAKBANK3% ₹130 Cr 710,470
↑ 9,554 Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | AXISBANK3% ₹124 Cr 1,326,130
↑ 65,925 Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | LT3% ₹124 Cr 592,341
↑ 15,884 4. UTI Nifty Index Fund
CAGR/Annualized return of 11.5% since its launch. Ranked 68 in Index Fund category. Return for 2022 was 5.3% , 2021 was 25.2% and 2020 was 15.5% . UTI Nifty Index Fund
Growth Launch Date 6 Mar 00 NAV (03 Feb 23) ₹119.964 ↑ 1.63 (1.38 %) Net Assets (Cr) ₹9,337 on 31 Dec 22 Category Others - Index Fund AMC UTI Asset Management Company Ltd Rating ☆☆ Risk Moderately High Expense Ratio 0.29 Sharpe Ratio 0.09 Information Ratio -3.58 Alpha Ratio -0.34 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹9,932 31 Jan 20 ₹11,086 31 Jan 21 ₹12,704 31 Jan 22 ₹16,294 31 Jan 23 ₹16,754 Returns for UTI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Feb 23 Duration Returns 1 Month -2.1% 3 Month -1.2% 6 Month 2.9% 1 Year 2.6% 3 Year 16% 5 Year 11.7% 10 Year 15 Year Since launch 11.5% Historical performance (Yearly) on absolute basis
Year Returns 2022 5.3% 2021 25.2% 2020 15.5% 2019 13.2% 2018 4.3% 2017 29.7% 2016 4% 2015 -3.3% 2014 31.8% 2013 6.9% Fund Manager information for UTI Nifty Index Fund
Name Since Tenure Sharwan Kumar Goyal 31 Jul 18 4.42 Yr. Ayush Jain 2 May 22 0.67 Yr. Data below for UTI Nifty Index Fund as on 31 Dec 22
Asset Allocation
Asset Class Value Equity 100.09% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE11% ₹1,026 Cr 4,028,657
↑ 76,263 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | HDFCBANK9% ₹838 Cr 5,144,013
↑ 103,456 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK8% ₹726 Cr 8,145,648
↑ 164,384 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY7% ₹645 Cr 4,274,612
↑ 81,186 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 12 | HDFC6% ₹555 Cr 2,105,559
↑ 28,110 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS4% ₹390 Cr 1,196,244
↑ 22,628 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | ITC4% ₹341 Cr 10,289,737
↑ 205,322 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Dec 10 | KOTAKBANK3% ₹309 Cr 1,692,600
↑ 9,414 Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | AXISBANK3% ₹295 Cr 3,159,327
↑ 133,050 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Dec 04 | LT3% ₹294 Cr 1,411,174
↑ 26,864 5. Franklin India Index Fund Nifty Plan
CAGR/Annualized return of 12.5% since its launch. Ranked 76 in Index Fund category. Return for 2022 was 4.9% , 2021 was 24.3% and 2020 was 14.7% . Franklin India Index Fund Nifty Plan
Growth Launch Date 4 Aug 00 NAV (03 Feb 23) ₹141.931 ↑ 1.92 (1.37 %) Net Assets (Cr) ₹502 on 31 Dec 22 Category Others - Index Fund AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆ Risk Moderately High Expense Ratio 0.68 Sharpe Ratio 0.07 Information Ratio -3.07 Alpha Ratio -0.72 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.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹9,839 31 Jan 20 ₹10,864 31 Jan 21 ₹12,366 31 Jan 22 ₹15,747 31 Jan 23 ₹16,136 Returns for Franklin India Index Fund Nifty Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Feb 23 Duration Returns 1 Month -2.1% 3 Month -1.3% 6 Month 2.7% 1 Year 2.3% 3 Year 15.3% 5 Year 10.8% 10 Year 15 Year Since launch 12.5% Historical performance (Yearly) on absolute basis
Year Returns 2022 4.9% 2021 24.3% 2020 14.7% 2019 12% 2018 3.2% 2017 28.3% 2016 3.3% 2015 -3.6% 2014 31.2% 2013 6.9% Fund Manager information for Franklin India Index Fund Nifty Plan
Name Since Tenure Varun Sharma 30 Nov 15 7.09 Yr. Sandeep Manam 18 Oct 21 1.2 Yr. Data below for Franklin India Index Fund Nifty Plan as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 0.39% Equity 99.61% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE11% ₹55 Cr 216,847 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | HDFCBANK9% ₹45 Cr 275,248 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | ICICIBANK8% ₹39 Cr 433,708 Infosys Ltd (Technology)
Equity, Since 29 Feb 12 | INFY7% ₹34 Cr 227,296 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Apr 09 | HDFC6% ₹30 Cr 113,671 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS4% ₹21 Cr 63,228 ITC Ltd (Consumer Defensive)
Equity, Since 31 Mar 11 | ITC4% ₹18 Cr 548,991 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | KOTAKBANK3% ₹17 Cr 92,381 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Jun 12 | LT3% ₹16 Cr 75,823 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 09 | AXISBANK3% ₹16 Cr 166,319 6. SBI Nifty Index Fund
CAGR/Annualized return of 14.1% since its launch. Ranked 75 in Index Fund category. Return for 2022 was 5.1% , 2021 was 24.7% and 2020 was 14.6% . SBI Nifty Index Fund
Growth Launch Date 17 Jan 02 NAV (03 Feb 23) ₹154.918 ↑ 2.11 (1.38 %) Net Assets (Cr) ₹3,168 on 31 Dec 22 Category Others - Index Fund AMC SBI Funds Management Private Limited Rating ☆ Risk Moderately High Expense Ratio 0.5 Sharpe Ratio 0.08 Information Ratio -4.32 Alpha Ratio -0.56 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-15 Days (0.2%),15 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹9,884 31 Jan 20 ₹10,961 31 Jan 21 ₹12,461 31 Jan 22 ₹15,922 31 Jan 23 ₹16,336 Returns for SBI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Feb 23 Duration Returns 1 Month -2.1% 3 Month -1.2% 6 Month 2.7% 1 Year 2.4% 3 Year 15.5% 5 Year 11.1% 10 Year 15 Year Since launch 14.1% Historical performance (Yearly) on absolute basis
Year Returns 2022 5.1% 2021 24.7% 2020 14.6% 2019 12.5% 2018 3.8% 2017 29.1% 2016 3.4% 2015 -4.2% 2014 30.5% 2013 6.2% Fund Manager information for SBI Nifty Index Fund
Name Since Tenure Raviprakash Sharma 1 Feb 11 11.92 Yr. Mohit Jain 30 Nov 17 5.09 Yr. Data below for SBI Nifty Index Fund as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 0.07% Equity 99.93% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE11% ₹348 Cr 1,364,694
↑ 36,031 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 03 | HDFCBANK9% ₹284 Cr 1,742,517
↑ 48,047 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK8% ₹246 Cr 2,759,310
↑ 76,267 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY7% ₹218 Cr 1,448,010
↑ 38,318 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 May 03 | HDFC6% ₹188 Cr 713,250
↑ 14,888 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS4% ₹132 Cr 405,224
↑ 10,697 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC4% ₹116 Cr 3,485,613
↑ 95,561 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | KOTAKBANK3% ₹105 Cr 573,362
↑ 7,536 Axis Bank Ltd (Financial Services)
Equity, Since 28 Feb 10 | AXISBANK3% ₹100 Cr 1,070,211
↑ 52,877 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Dec 04 | LT3% ₹100 Cr 478,030
↑ 12,669 7. IDBI Nifty Index Fund
CAGR/Annualized return of 9.9% since its launch. Ranked 83 in Index Fund category. Return for 2022 was 4.7% , 2021 was 23.5% and 2020 was 14.7% . IDBI Nifty Index Fund
Growth Launch Date 25 Jun 10 NAV (03 Feb 23) ₹32.8137 ↑ 0.45 (1.38 %) Net Assets (Cr) ₹201 on 31 Dec 22 Category Others - Index Fund AMC IDBI Asset Management Limited Rating ☆ Risk Moderately High Expense Ratio 0.9 Sharpe Ratio 0.06 Information Ratio -3.9 Alpha Ratio -0.94 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹9,806 31 Jan 20 ₹10,853 31 Jan 21 ₹12,347 31 Jan 22 ₹15,622 31 Jan 23 ₹15,969 Returns for IDBI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Feb 23 Duration Returns 1 Month -2.1% 3 Month -1.3% 6 Month 2.5% 1 Year 2% 3 Year 15% 5 Year 10.6% 10 Year 15 Year Since launch 9.9% Historical performance (Yearly) on absolute basis
Year Returns 2022 4.7% 2021 23.5% 2020 14.7% 2019 12.3% 2018 2.8% 2017 27.4% 2016 2.4% 2015 -4.4% 2014 30.8% 2013 7.2% Fund Manager information for IDBI Nifty Index Fund
Name Since Tenure Jayesh Shah 12 Jul 22 0.47 Yr. Data below for IDBI Nifty Index Fund as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 0.07% Equity 99.93% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 11 | RELIANCE11% ₹22 Cr 86,609
↑ 91 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | HDFCBANK9% ₹18 Cr 110,587
↑ 249 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | ICICIBANK8% ₹16 Cr 175,117
↑ 406 Infosys Ltd (Technology)
Equity, Since 30 Apr 11 | INFY7% ₹14 Cr 91,897
↑ 103 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Apr 11 | HDFC6% ₹12 Cr 45,266
↓ -210 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 11 | TCS4% ₹8 Cr 25,717
↑ 42 ITC Ltd (Consumer Defensive)
Equity, Since 30 Apr 11 | ITC4% ₹7 Cr 221,211
↑ 599 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | KOTAKBANK3% ₹7 Cr 36,388
↓ -434 Axis Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | AXISBANK3% ₹6 Cr 67,920
↑ 1,716 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Apr 11 | LT3% ₹6 Cr 30,338
↑ 54 8. Nippon India Index Fund - Nifty Plan
CAGR/Annualized return of 9.2% since its launch. Ranked 78 in Index Fund category. Return for 2022 was 4.6% , 2021 was 24% and 2020 was 14.3% . Nippon India Index Fund - Nifty Plan
Growth Launch Date 28 Sep 10 NAV (03 Feb 23) ₹29.7883 ↑ 0.41 (1.38 %) Net Assets (Cr) ₹634 on 31 Dec 22 Category Others - Index Fund AMC Nippon Life Asset Management Ltd. Rating ☆ Risk Moderately High Expense Ratio 1.09 Sharpe Ratio 0.05 Information Ratio -5.1 Alpha Ratio -1 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.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹9,855 31 Jan 20 ₹10,908 31 Jan 21 ₹12,370 31 Jan 22 ₹15,715 31 Jan 23 ₹16,061 Returns for Nippon India Index Fund - Nifty Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Feb 23 Duration Returns 1 Month -2.1% 3 Month -1.2% 6 Month 2.7% 1 Year 2% 3 Year 15% 5 Year 10.7% 10 Year 15 Year Since launch 9.2% Historical performance (Yearly) on absolute basis
Year Returns 2022 4.6% 2021 24% 2020 14.3% 2019 12.3% 2018 3.5% 2017 29% 2016 2.5% 2015 -3.9% 2014 31.9% 2013 7.1% Fund Manager information for Nippon India Index Fund - Nifty Plan
Name Since Tenure Mehul Dama 6 Nov 18 4.15 Yr. Data below for Nippon India Index Fund - Nifty Plan as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 0.16% Equity 99.84% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 10 | RELIANCE11% ₹69 Cr 272,776
↑ 8,148 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | HDFCBANK9% ₹57 Cr 348,295
↑ 10,810 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | ICICIBANK8% ₹49 Cr 551,532
↑ 17,155 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY7% ₹44 Cr 289,429
↑ 8,663 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Oct 10 | HDFC6% ₹38 Cr 142,565
↑ 3,472 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Oct 10 | TCS4% ₹26 Cr 80,996
↑ 2,418 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC4% ₹23 Cr 696,706
↑ 21,515 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Aug 11 | KOTAKBANK3% ₹21 Cr 114,604
↑ 1,908 Axis Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | AXISBANK3% ₹20 Cr 213,914
↑ 11,293 Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | LT3% ₹20 Cr 95,549
↑ 2,864 9. ICICI Prudential Nifty Next 50 Index Fund
CAGR/Annualized return of 10.2% since its launch. Ranked 5 in Index Fund category. Return for 2022 was 0.1% , 2021 was 29.5% and 2020 was 14.3% . ICICI Prudential Nifty Next 50 Index Fund
Growth Launch Date 25 Jun 10 NAV (03 Feb 23) ₹33.8483 ↓ 0.00 (-0.01 %) Net Assets (Cr) ₹2,585 on 31 Dec 22 Category Others - Index Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 0.79 Sharpe Ratio -0.15 Information Ratio -7.62 Alpha Ratio -0.89 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.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹8,738 31 Jan 20 ₹9,312 31 Jan 21 ₹10,400 31 Jan 22 ₹13,424 31 Jan 23 ₹12,828 Returns for ICICI Prudential Nifty Next 50 Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Feb 23 Duration Returns 1 Month -9.4% 3 Month -10.7% 6 Month -7.5% 1 Year -8.3% 3 Year 11.6% 5 Year 5.3% 10 Year 15 Year Since launch 10.2% Historical performance (Yearly) on absolute basis
Year Returns 2022 0.1% 2021 29.5% 2020 14.3% 2019 0.6% 2018 -8.8% 2017 45.7% 2016 7.6% 2015 6.2% 2014 43.6% 2013 5.4% Fund Manager information for ICICI Prudential Nifty Next 50 Index Fund
Name Since Tenure Kayzad Eghlim 25 Jun 10 12.53 Yr. Nishit Patel 18 Jan 21 1.95 Yr. Data below for ICICI Prudential Nifty Next 50 Index Fund as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 0.09% Equity 99.91% Top Securities Holdings / Portfolio
Name Holding Value Quantity Adani Total Gas Ltd (Utilities)
Equity, Since 30 Sep 22 | ATGL4% ₹99 Cr 267,148
↑ 32,233 LTIMindtree Ltd (Technology)
Equity, Since 30 Sep 20 | LTIM3% ₹89 Cr 204,529
↑ 100,540 Pidilite Industries Ltd (Basic Materials)
Equity, Since 30 Apr 16 | PIDILITIND3% ₹87 Cr 340,134
↓ -7,731 Ambuja Cements Ltd (Basic Materials)
Equity, Since 31 Mar 18 | 5004253% ₹86 Cr 1,638,707
↓ -37,294 Bharat Electronics Ltd (Industrials)
Equity, Since 30 Sep 22 | BEL3% ₹80 Cr 7,989,110
↓ -181,814 Tata Power Co Ltd (Utilities)
Equity, Since 31 Aug 22 | TATAPOWER3% ₹78 Cr 3,777,383
↓ -85,966 Bank of Baroda (Financial Services)
Equity, Since 30 Sep 21 | BANKBARODA3% ₹77 Cr 4,152,463
↓ -94,500 Vedanta Ltd (Basic Materials)
Equity, Since 31 Mar 21 | VEDL3% ₹77 Cr 2,487,341
↓ -56,606 SRF Ltd (Basic Materials)
Equity, Since 31 Mar 22 | SRF3% ₹74 Cr 323,972
↓ -7,372 Godrej Consumer Products Ltd (Consumer Defensive)
Equity, Since 30 Sep 12 | GODREJCP3% ₹74 Cr 844,008
↓ -19,154
Why Passive Index Funds are Better?
The Association of Mutual Funds in India (AMFI) stated that index funds had gathered an AUM of Rs. 7717 crore on November 2019. Passive large-cap ETFs offer returns of 11.53% compared to actively managed Large cap funds that offered 10.19%.
gold ETFs stood at Rs. 5,540.40 crore as of November 2019. This comes in comparison to Rs. 4,571 crore in December 2018. The AUM of other ETFs
stood at Rs. 1,63,923.66 crore, as compared to Rs. 1,07,363 crore at the end of 2018.
Large Cap ETFs
A large part of 2019 witnessed that large-cap schemes were at the top of return charts. Even in 2020, nine out of the top 15 large-cap schemes are Passive Funds.
Passive Funds - Safe Heaven Amidst Coronavirus Pandemic
With the current situation across the globe, the financial markets are facing issues of deep concern. While investors were willing to take a risk in the past, today’s conditions have pushed the majority of the investors to look for a Safe Haven. This means they are looking for an investment that will yield higher returns or at least stable returns.
Several investors are now looking to invest through passive modes such as exchange-traded funds or index funds. As per AMFI, Inflow into the index funds faced an all-time high of Rs. 2076.5 crore in March 2020.
Passive Funds Vs Active Funds
There are specific differences in the way they function and affect the investor.
The tabular differentiates between passive funds and active funds:
| Passive Funds | Active Funds |
|---|---|
| They do not have active participation of fund managers | Fund managers do a lot of Industry research and take steps accordingly to select funds in various securities based on market performance |
| Less expensive | As there is a work put in towards the investment, it may be expensive |
| Popular because of the low expense ratio | Might be less popular due to high expense ratio |
Risks of Investing In Index Funds
No Flexibility of Index Mutual Funds
One major disadvantage is the lack of flexibility. Since the funds just track the index, they can miss out on the opportunity to make higher returns which may arise due to market anomalies and surprises that are not connected to the index. Typically, value stocks would find it very difficult to be part of an index.
Market Risk on Index Mutual Funds
They have a direct relation with the market. So, when the stock markets fall as a whole, so does the value of the index mutual fund.
Despite having a few disadvantages, top index funds can be beneficial for investors who want to invest in equities with a minimal risk Factor. As per experts, investors are suggested to include 5-6% of Index Funds in their investment portfolio to make best out of their investment.
How to Invest in Index Mutual Funds Online?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
FAQs
1. Why should you invest in index mutual funds?
A: If you want to make a long-term investment, then you can consider index fund. The portfolios of these funds are designed by tracking the composition and behavior of the NSE and SENSEX. As these portfolios are developed by evaluating the stocks' performance and shares over a long period, the chances of your investment not performing are minimized. Hence, investing in Index mutual funds is advised, especially if you are looking to reduce the risk.
2. How to select a particular index MF?
A: You should select an individual portfolio of Index mutual funds based on its long term performance. Some of the more reliable funds are SBI, LICI, ICICI Prudential UTI, and other similar index funds used as a base for benchmarking.
3. What is the main advantage of investing in an Index fund?
A: The index funds are passively managed. Thus, the total expense ratio or TER of the index funds is lower than that of the actively managed funds. This means your investment will be lower, and the expense that you can expect can be as low as 0.2% to 0.5% of your investment. The low TER is the main advantage of investing in an Index Fund.
4. How much to expect from SBI Nifty Index Fund?
A: The SBI Nifty Index Fund is passively managed and shows a growth rate of 15.19% versus Nifty 50, which has a growth rate of 15.5%. So if you make a 10-year investment in the SBI Nifty Index Fund, you might expect an 85.77% return on your investment.
5. What can you expect if you invest in ICICI Prudential Nifty Index Fund?
A: The ICICI Prudential Nifty Index Fund has a category average of 16.78%. Suppose, if you invest for 5 years, then you can expect absolute returns of 45.88%.
6. How do Index Funds add to diversification?
A: Index funds primarily consist of top companies whose stocks are used as benchmarks. Additionally, in a single portfolio, you will have multiple leading companies, which means the chances of losing your investment will be reduced. This auto diversification automatically reduces the investor's risk of losing the investment.
7. When should you consider investing in Index funds?
A: You should invest in Index Funds when you are prepared to hold your investment for at least 5 years.
8. Is there some way that I can select the best Index fund?
A: If you are a newbie then you should discuss it with the fund manager. They help you to decide on the suitable funds. Additionally, you should also consider the time duration of investment.
9. Who is ideally suited to invest in Index Funds?
A: Individuals who do not wish to undertake much risk when investing in Mutual Funds can consider investing in index funds. These funds do not just assure investors sure returns, but also do not require extensive investment from the investor.
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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Quite detailed review which helps in deciding which is a better performing index fund