+91-22-62820123
Table of Contents
- Why to Invest in Index Funds in India?
- Type of Index Mutual Funds
- Top 9 Best Performing Index Funds FY 21 - 22
- 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 2021
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.
Talk to our investment specialist
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 21 - 22
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2020 (%) Nippon India Index Fund - Sensex Plan Growth ₹24.5397
↓ -0.08 ₹128 1.7 22.5 59.7 13.9 15.2 16.6 LIC MF Index Fund Sensex Growth ₹92.0285
↓ -0.29 ₹31 1.5 22 58.5 13.8 14.8 15.9 ICICI Prudential Nifty Index Fund Growth ₹144.247
↓ -0.38 ₹1,375 3.4 24.7 62.9 13.1 14.8 15.2 UTI Nifty Index Fund Growth ₹98.0737
↓ -0.26 ₹3,292 3.6 25 64 13.6 15.5 15.5 Franklin India Index Fund Nifty Plan Growth ₹117.041
↓ -0.31 ₹388 3.4 24.3 62.2 12.6 14.4 14.7 SBI Nifty Index Fund Growth ₹127.267
↓ -0.34 ₹924 3.4 24.6 63.2 12.9 14.8 14.6 IDBI Nifty Index Fund Growth ₹27.1309
↓ -0.07 ₹261 2.7 23.6 61.5 12.4 13.9 14.7 Nippon India Index Fund - Nifty Plan Growth ₹24.6748
↓ -0.07 ₹304 3.3 24.3 62.1 12.6 14.4 14.3 LIC MF Index Fund Nifty Growth ₹81.496
↓ -0.22 ₹35 3.1 23.9 61.8 12.7 14.2 14.7 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 9 Apr 21
*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 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 Nifty 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 Nifty Returns up to 1 year are on 1. Nippon India Index Fund - Sensex Plan
CAGR/Annualized return of 8.9% since its launch. Ranked 74 in Index Fund category. Return for 2020 was 16.6% , 2019 was 14.2% and 2018 was 6.2% . Nippon India Index Fund - Sensex Plan
Growth Launch Date 28 Sep 10 NAV (09 Apr 21) ₹24.5397 ↓ -0.08 (-0.31 %) Net Assets (Cr) ₹128 on 28 Feb 21 Category Others - Index Fund AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 0.81 Sharpe Ratio 0.82 Information Ratio -2.54 Alpha Ratio -0.3 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 Mar 16 ₹10,000 31 Mar 17 ₹11,684 31 Mar 18 ₹13,056 31 Mar 19 ₹15,312 31 Mar 20 ₹11,753 31 Mar 21 ₹19,740 Returns for Nippon India Index Fund - Sensex Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Apr 21 Duration Returns 1 Month -2.9% 3 Month 1.7% 6 Month 22.5% 1 Year 59.7% 3 Year 13.9% 5 Year 15.2% 10 Year 15 Year Since launch 8.9% Historical performance (Yearly) on absolute basis
Year Returns 2020 16.6% 2019 14.2% 2018 6.2% 2017 27.9% 2016 2% 2015 -4.7% 2014 28.7% 2013 9.8% 2012 27.3% 2011 -25% Fund Manager information for Nippon India Index Fund - Sensex Plan
Name Since Tenure Mehul Dama 6 Nov 18 2.4 Yr. Data below for Nippon India Index Fund - Sensex Plan as on 28 Feb 21
Asset Allocation
Asset Class Value Cash 0.94% Equity 99.06% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 31 Oct 10 | RELIANCE12% ₹16 Cr 76,347
↓ -3,059 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | HDFCBANK12% ₹15 Cr 96,097
↓ -3,850 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY8% ₹11 Cr 86,501
↓ -3,466 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Oct 10 | HDFC8% ₹11 Cr 42,494
↓ -1,702 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | ICICIBANK8% ₹10 Cr 162,941
↓ -6,528 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Oct 10 | TCS6% ₹7 Cr 24,811
↓ -994 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Jun 17 | KOTAKBANK4% ₹5 Cr 30,856
↓ -1,236 Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | 5322154% ₹5 Cr 62,158
↓ -2,490 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Oct 10 | 5006964% ₹4 Cr 21,084
↓ -844 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC3% ₹4 Cr 206,303
↓ -8,265 2. LIC MF Index Fund Sensex
CAGR/Annualized return of 13.4% since its launch. Ranked 79 in Index Fund category. Return for 2020 was 15.9% , 2019 was 14.6% and 2018 was 5.6% . LIC MF Index Fund Sensex
Growth Launch Date 14 Nov 02 NAV (09 Apr 21) ₹92.0285 ↓ -0.29 (-0.31 %) Net Assets (Cr) ₹31 on 28 Feb 21 Category Others - Index Fund AMC LIC Mutual Fund Asset Mgmt Co Ltd Rating ☆ Risk Moderately High Expense Ratio 1.03 Sharpe Ratio 0.8 Information Ratio -3.57 Alpha Ratio -0.93 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 Mar 16 ₹10,000 31 Mar 17 ₹11,642 31 Mar 18 ₹12,893 31 Mar 19 ₹15,094 31 Mar 20 ₹11,609 31 Mar 21 ₹19,409 Returns for LIC MF Index Fund Sensex
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Apr 21 Duration Returns 1 Month -2.9% 3 Month 1.5% 6 Month 22% 1 Year 58.5% 3 Year 13.8% 5 Year 14.8% 10 Year 15 Year Since launch 13.4% Historical performance (Yearly) on absolute basis
Year Returns 2020 15.9% 2019 14.6% 2018 5.6% 2017 27.4% 2016 1.6% 2015 -5.4% 2014 29.3% 2013 9.2% 2012 26.3% 2011 -24.4% Fund Manager information for LIC MF Index Fund Sensex
Name Since Tenure Ritu Modi 1 Nov 19 1.41 Yr. Data below for LIC MF Index Fund Sensex as on 28 Feb 21
Asset Allocation
Asset Class Value Cash 0.47% Equity 99.53% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 31 Mar 09 | RELIANCE13% ₹4 Cr 18,591
↓ -334 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | HDFCBANK12% ₹4 Cr 23,418
↓ -398 Infosys Ltd (Technology)
Equity, Since 31 Mar 09 | INFY9% ₹3 Cr 21,051
↓ -322 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 09 | HDFC8% ₹3 Cr 10,326
↓ -159 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 09 | ICICIBANK8% ₹2 Cr 39,755
↓ -607 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 09 | TCS6% ₹2 Cr 6,025
↓ -93 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Jun 17 | KOTAKBANK4% ₹1 Cr 7,522
↓ -115 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Oct 11 | 5006964% ₹1 Cr 5,147
↓ -80 Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | 5322154% ₹1 Cr 15,063
↓ -231 ITC Ltd (Consumer Defensive)
Equity, Since 30 Sep 11 | ITC3% ₹1 Cr 49,808
↓ -767 3. ICICI Prudential Nifty Index Fund
CAGR/Annualized return of 15% since its launch. Ranked 71 in Index Fund category. Return for 2020 was 15.2% , 2019 was 12.8% and 2018 was 3.4% . ICICI Prudential Nifty Index Fund
Growth Launch Date 26 Feb 02 NAV (09 Apr 21) ₹144.247 ↓ -0.38 (-0.26 %) Net Assets (Cr) ₹1,375 on 28 Feb 21 Category Others - Index Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.46 Sharpe Ratio 0.84 Information Ratio -6.14 Alpha Ratio -0.86 Min Investment 5,000 Min SIP Investment 100 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Mar 16 ₹10,000 31 Mar 17 ₹11,882 31 Mar 18 ₹13,119 31 Mar 19 ₹15,108 31 Mar 20 ₹11,272 31 Mar 21 ₹19,276 Returns for ICICI Prudential Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Apr 21 Duration Returns 1 Month -1.8% 3 Month 3.4% 6 Month 24.7% 1 Year 62.9% 3 Year 13.1% 5 Year 14.8% 10 Year 15 Year Since launch 15% Historical performance (Yearly) on absolute basis
Year Returns 2020 15.2% 2019 12.8% 2018 3.4% 2017 28.7% 2016 3.6% 2015 -3.6% 2014 32.5% 2013 7.9% 2012 26.5% 2011 -23.6% Fund Manager information for ICICI Prudential Nifty Index Fund
Name Since Tenure Kayzad Eghlim 1 Aug 09 11.67 Yr. Nishit Patel 18 Jan 21 0.2 Yr. Data below for ICICI Prudential Nifty Index Fund as on 28 Feb 21
Asset Allocation
Asset Class Value Cash 0.54% Equity 99.46% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 31 Mar 05 | RELIANCE11% ₹147 Cr 706,303
↑ 15,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | HDFCBANK11% ₹146 Cr 949,818
↑ 20,186 Infosys Ltd (Technology)
Equity, Since 31 Mar 05 | INFY7% ₹101 Cr 809,003
↑ 17,193 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 12 | HDFC7% ₹100 Cr 392,325
↑ 8,342 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | ICICIBANK7% ₹90 Cr 1,506,641
↑ 32,029 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 05 | TCS5% ₹66 Cr 229,529
↑ 4,876 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 29 Feb 12 | KOTAKBANK4% ₹57 Cr 319,972
↑ 6,795 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Mar 05 | 5006963% ₹42 Cr 195,048
↑ 4,141 Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | 5322153% ₹39 Cr 541,508
↑ 11,501 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC3% ₹39 Cr 1,908,564
↑ 40,537 4. UTI Nifty Index Fund
CAGR/Annualized return of 11.4% since its launch. Ranked 68 in Index Fund category. Return for 2020 was 15.5% , 2019 was 13.2% and 2018 was 4.3% . UTI Nifty Index Fund
Growth Launch Date 6 Mar 00 NAV (09 Apr 21) ₹98.0737 ↓ -0.26 (-0.26 %) Net Assets (Cr) ₹3,292 on 28 Feb 21 Category Others - Index Fund AMC UTI Asset Management Company Ltd Rating ☆☆ Risk Moderately High Expense Ratio 0.17 Sharpe Ratio 0.84 Information Ratio -2.62 Alpha Ratio -0.63 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Mar 16 ₹10,000 31 Mar 17 ₹11,951 31 Mar 18 ₹13,325 31 Mar 19 ₹15,456 31 Mar 20 ₹11,530 31 Mar 21 ₹19,845 Returns for UTI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Apr 21 Duration Returns 1 Month -1.7% 3 Month 3.6% 6 Month 25% 1 Year 64% 3 Year 13.6% 5 Year 15.5% 10 Year 15 Year Since launch 11.4% Historical performance (Yearly) on absolute basis
Year Returns 2020 15.5% 2019 13.2% 2018 4.3% 2017 29.7% 2016 4% 2015 -3.3% 2014 31.8% 2013 6.9% 2012 28.3% 2011 -24.8% Fund Manager information for UTI Nifty Index Fund
Name Since Tenure Sharwan Kumar Goyal 1 May 19 1.92 Yr. Data below for UTI Nifty Index Fund as on 28 Feb 21
Asset Allocation
Asset Class Value Equity 101.76% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 31 Jan 03 | RELIANCE11% ₹361 Cr 1,729,226
↑ 21,972 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | HDFCBANK11% ₹357 Cr 2,327,151
↑ 29,573 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY8% ₹248 Cr 1,982,037
↑ 25,190 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 12 | HDFC7% ₹244 Cr 961,187
↑ 12,219 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK7% ₹221 Cr 3,692,242
↑ 46,904 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS5% ₹163 Cr 561,948
↑ 7,140 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Dec 10 | KOTAKBANK4% ₹140 Cr 783,576
↑ 9,960 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | 5006963% ₹102 Cr 477,530
↑ 6,074 Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | 5322153% ₹96 Cr 1,326,182
↑ 16,835 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | ITC3% ₹95 Cr 4,672,744
↑ 59,359 5. Franklin India Index Fund Nifty Plan
CAGR/Annualized return of 12.6% since its launch. Ranked 76 in Index Fund category. Return for 2020 was 14.7% , 2019 was 12% and 2018 was 3.2% . Franklin India Index Fund Nifty Plan
Growth Launch Date 4 Aug 00 NAV (09 Apr 21) ₹117.041 ↓ -0.31 (-0.26 %) Net Assets (Cr) ₹388 on 28 Feb 21 Category Others - Index Fund AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆ Risk Moderately High Expense Ratio 1 Sharpe Ratio 0.83 Information Ratio -3.61 Alpha Ratio -1.26 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 Mar 16 ₹10,000 31 Mar 17 ₹11,869 31 Mar 18 ₹13,069 31 Mar 19 ₹15,006 31 Mar 20 ₹11,160 31 Mar 21 ₹18,935 Returns for Franklin India Index Fund Nifty Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Apr 21 Duration Returns 1 Month -1.8% 3 Month 3.4% 6 Month 24.3% 1 Year 62.2% 3 Year 12.6% 5 Year 14.4% 10 Year 15 Year Since launch 12.6% Historical performance (Yearly) on absolute basis
Year Returns 2020 14.7% 2019 12% 2018 3.2% 2017 28.3% 2016 3.3% 2015 -3.6% 2014 31.2% 2013 6.9% 2012 27.7% 2011 -24.4% Fund Manager information for Franklin India Index Fund Nifty Plan
Name Since Tenure Varun Sharma 30 Nov 15 5.34 Yr. Mayank Bukrediwala 23 Aug 20 0.6 Yr. Data below for Franklin India Index Fund Nifty Plan as on 28 Feb 21
Asset Allocation
Asset Class Value Cash 0.49% Equity 99.51% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 31 Jan 03 | RELIANCE11% ₹42 Cr 200,903 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | HDFCBANK11% ₹42 Cr 271,286 Infosys Ltd (Technology)
Equity, Since 29 Feb 12 | INFY7% ₹29 Cr 228,375 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Apr 09 | HDFC7% ₹28 Cr 111,903 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | ICICIBANK7% ₹26 Cr 430,892 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS5% ₹19 Cr 64,223 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | KOTAKBANK4% ₹16 Cr 91,938 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | 5006963% ₹12 Cr 55,978 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 09 | 5322153% ₹11 Cr 153,822 ITC Ltd (Consumer Defensive)
Equity, Since 31 Mar 11 | ITC3% ₹11 Cr 542,707 6. SBI Nifty Index Fund
CAGR/Annualized return of 14.4% since its launch. Ranked 75 in Index Fund category. Return for 2020 was 14.6% , 2019 was 12.5% and 2018 was 3.8% . SBI Nifty Index Fund
Growth Launch Date 17 Jan 02 NAV (09 Apr 21) ₹127.267 ↓ -0.34 (-0.26 %) Net Assets (Cr) ₹924 on 28 Feb 21 Category Others - Index Fund AMC SBI Funds Management Private Limited Rating ☆ Risk Moderately High Expense Ratio 0.68 Sharpe Ratio 0.82 Information Ratio -4.92 Alpha Ratio -1.48 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 Mar 16 ₹10,000 31 Mar 17 ₹11,900 31 Mar 18 ₹13,184 31 Mar 19 ₹15,228 31 Mar 20 ₹11,262 31 Mar 21 ₹19,274 Returns for SBI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Apr 21 Duration Returns 1 Month -1.8% 3 Month 3.4% 6 Month 24.6% 1 Year 63.2% 3 Year 12.9% 5 Year 14.8% 10 Year 15 Year Since launch 14.4% Historical performance (Yearly) on absolute basis
Year Returns 2020 14.6% 2019 12.5% 2018 3.8% 2017 29.1% 2016 3.4% 2015 -4.2% 2014 30.5% 2013 6.2% 2012 28.4% 2011 -24.6% Fund Manager information for SBI Nifty Index Fund
Name Since Tenure Raviprakash Sharma 1 Feb 11 10.17 Yr. Data below for SBI Nifty Index Fund as on 28 Feb 21
Asset Allocation
Asset Class Value Cash 2.41% Equity 97.59% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 31 Jan 03 | RELIANCE11% ₹97 Cr 465,703
↑ 4,786 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 03 | HDFCBANK10% ₹96 Cr 626,736
↑ 6,443 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY7% ₹67 Cr 533,790
↑ 5,488 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 May 03 | HDFC7% ₹66 Cr 258,862
↑ 2,661 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK6% ₹59 Cr 994,376
↑ 10,224 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS5% ₹44 Cr 151,341
↑ 1,557 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | KOTAKBANK4% ₹38 Cr 211,028
↑ 2,170 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | 5006963% ₹27 Cr 128,606
↑ 1,322 Axis Bank Ltd (Financial Services)
Equity, Since 28 Feb 10 | 5322153% ₹26 Cr 357,161
↑ 3,673 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC3% ₹26 Cr 1,258,439
↑ 12,939 7. IDBI Nifty Index Fund
CAGR/Annualized return of 9.7% since its launch. Ranked 83 in Index Fund category. Return for 2020 was 14.7% , 2019 was 12.3% and 2018 was 2.8% . IDBI Nifty Index Fund
Growth Launch Date 25 Jun 10 NAV (09 Apr 21) ₹27.1309 ↓ -0.07 (-0.26 %) Net Assets (Cr) ₹261 on 28 Feb 21 Category Others - Index Fund AMC IDBI Asset Management Limited Rating ☆ Risk Moderately High Expense Ratio 1.02 Sharpe Ratio 0.82 Information Ratio -9.96 Alpha Ratio -1.31 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Mar 16 ₹10,000 31 Mar 17 ₹11,770 31 Mar 18 ₹12,861 31 Mar 19 ₹14,761 31 Mar 20 ₹10,941 31 Mar 21 ₹18,653 Returns for IDBI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Apr 21 Duration Returns 1 Month -2.4% 3 Month 2.7% 6 Month 23.6% 1 Year 61.5% 3 Year 12.4% 5 Year 13.9% 10 Year 15 Year Since launch 9.7% Historical performance (Yearly) on absolute basis
Year Returns 2020 14.7% 2019 12.3% 2018 2.8% 2017 27.4% 2016 2.4% 2015 -4.4% 2014 30.8% 2013 7.2% 2012 27.7% 2011 -24.9% Fund Manager information for IDBI Nifty Index Fund
Name Since Tenure Firdaus Ragina 9 Oct 18 2.48 Yr. Data below for IDBI Nifty Index Fund as on 28 Feb 21
Asset Allocation
Asset Class Value Cash 0.31% Equity 99.69% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 30 Apr 11 | RELIANCE11% ₹28 Cr 134,065
↓ -2,501 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | HDFCBANK11% ₹28 Cr 180,421
↓ -3,365 Infosys Ltd (Technology)
Equity, Since 30 Apr 11 | INFY7% ₹19 Cr 153,666
↓ -2,866 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Apr 11 | HDFC7% ₹19 Cr 74,519
↓ -1,391 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | ICICIBANK7% ₹17 Cr 286,253
↓ -5,345 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 11 | TCS5% ₹13 Cr 43,568
↓ -812 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | KOTAKBANK4% ₹11 Cr 60,749
↓ -1,134 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Apr 11 | 5006963% ₹8 Cr 37,023
↓ -690 Axis Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | 5322153% ₹7 Cr 102,817
↓ -1,922 ITC Ltd (Consumer Defensive)
Equity, Since 30 Apr 11 | ITC3% ₹7 Cr 362,273
↓ -6,758 8. Nippon India Index Fund - Nifty Plan
CAGR/Annualized return of 9% since its launch. Ranked 78 in Index Fund category. Return for 2020 was 14.3% , 2019 was 12.3% and 2018 was 3.5% . Nippon India Index Fund - Nifty Plan
Growth Launch Date 28 Sep 10 NAV (09 Apr 21) ₹24.6748 ↓ -0.07 (-0.26 %) Net Assets (Cr) ₹304 on 28 Feb 21 Category Others - Index Fund AMC Nippon Life Asset Management Ltd. Rating ☆ Risk Moderately High Expense Ratio 1.01 Sharpe Ratio 0.82 Information Ratio -4.83 Alpha Ratio -1.49 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 Mar 16 ₹10,000 31 Mar 17 ₹11,811 31 Mar 18 ₹13,047 31 Mar 19 ₹15,034 31 Mar 20 ₹11,164 31 Mar 21 ₹18,922 Returns for Nippon India Index Fund - Nifty Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Apr 21 Duration Returns 1 Month -1.8% 3 Month 3.3% 6 Month 24.3% 1 Year 62.1% 3 Year 12.6% 5 Year 14.4% 10 Year 15 Year Since launch 9% Historical performance (Yearly) on absolute basis
Year Returns 2020 14.3% 2019 12.3% 2018 3.5% 2017 29% 2016 2.5% 2015 -3.9% 2014 31.9% 2013 7.1% 2012 29.1% 2011 -24% Fund Manager information for Nippon India Index Fund - Nifty Plan
Name Since Tenure Mehul Dama 6 Nov 18 2.4 Yr. Data below for Nippon India Index Fund - Nifty Plan as on 28 Feb 21
Asset Allocation
Asset Class Value Cash 0.58% Equity 99.42% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 31 Oct 10 | RELIANCE11% ₹33 Cr 155,930
↑ 807 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | HDFCBANK11% ₹32 Cr 209,847
↑ 1,086 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY7% ₹22 Cr 178,727
↑ 925 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Oct 10 | HDFC7% ₹22 Cr 86,673
↑ 448 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | ICICIBANK7% ₹20 Cr 332,941
↑ 1,723 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Oct 10 | TCS5% ₹15 Cr 50,673
↑ 263 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Aug 11 | KOTAKBANK4% ₹13 Cr 70,657
↑ 365 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Oct 10 | 5006963% ₹9 Cr 43,060
↑ 222 Axis Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | 5322153% ₹9 Cr 119,586
↑ 619 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC3% ₹9 Cr 421,356
↑ 2,180 9. LIC MF Index Fund Nifty
CAGR/Annualized return of 12.7% since its launch. Ranked 80 in Index Fund category. Return for 2020 was 14.7% , 2019 was 12.6% and 2018 was 2.6% . LIC MF Index Fund Nifty
Growth Launch Date 14 Nov 02 NAV (09 Apr 21) ₹81.496 ↓ -0.22 (-0.26 %) Net Assets (Cr) ₹35 on 28 Feb 21 Category Others - Index Fund AMC LIC Mutual Fund Asset Mgmt Co Ltd Rating ☆ Risk Moderately High Expense Ratio 0.97 Sharpe Ratio 0.82 Information Ratio -4.97 Alpha Ratio -1.6 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 Mar 16 ₹10,000 31 Mar 17 ₹11,797 31 Mar 18 ₹12,936 31 Mar 19 ₹14,863 31 Mar 20 ₹11,066 31 Mar 21 ₹18,798 Returns for LIC MF Index Fund Nifty
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Apr 21 Duration Returns 1 Month -1.9% 3 Month 3.1% 6 Month 23.9% 1 Year 61.8% 3 Year 12.7% 5 Year 14.2% 10 Year 15 Year Since launch 12.7% Historical performance (Yearly) on absolute basis
Year Returns 2020 14.7% 2019 12.6% 2018 2.6% 2017 28.6% 2016 2.7% 2015 -4.1% 2014 31.1% 2013 6.5% 2012 27.7% 2011 -23.9% Fund Manager information for LIC MF Index Fund Nifty
Name Since Tenure Ritu Modi 1 Nov 19 1.41 Yr. Data below for LIC MF Index Fund Nifty as on 28 Feb 21
Asset Allocation
Asset Class Value Cash 0.56% Equity 99.44% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 31 Mar 12 | RELIANCE11% ₹4 Cr 18,170
↑ 396 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 09 | HDFCBANK11% ₹4 Cr 24,473
↑ 591 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY7% ₹3 Cr 20,851
↑ 477 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Jan 03 | HDFC7% ₹3 Cr 10,113
↑ 233 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 09 | ICICIBANK7% ₹2 Cr 38,839
↑ 869 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 05 | TCS5% ₹2 Cr 5,931
↑ 148 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Apr 10 | KOTAKBANK4% ₹1 Cr 8,237
↑ 221 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Oct 11 | 5006963% ₹1 Cr 5,065
↑ 133 Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | 5322153% ₹1 Cr 14,017
↑ 374 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | ITC3% ₹1 Cr 49,196
↑ 1,322
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.
You Might Also Like
AMFI Registration No. 112358 | CIN: U74999MH2016PTC282153
Shepard Technologies Pvt. Ltd. (with ARN code 112358) makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Terms and conditions of the website are applicable.
©2021 Shepard Technologies Private Limited. All Rights Reserved
Quite detailed review which helps in deciding which is a better performing index fund