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Table of Contents
- Types of Funds in Passive Index Funds
- Why to Invest in Index Funds in India?
- Type of Index Mutual Funds
- Top 9 Best Performing Index Funds FY 25 - 26
- Why Passive Index Funds are Better?
- Passive Funds - Safe Heaven Amidst Coronavirus Pandemic
- Passive Funds Vs Active Funds
- Risks of Investing In Index Funds
- Why Passive Index Funds Are Better?
- 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. Do Passive Index Funds guarantee returns?
- 5. Do Passive Index Funds pay dividends?
- 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 2025
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 same 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 SBI shares with a proportion of 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 the 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.
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.
Top 9 Best Performing Index Funds FY 25 - 26
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) Nippon India Index Fund - Sensex Plan Growth ₹42.4156
↑ 0.12 ₹890 11.2 5.9 5 16.9 19 8.9 LIC MF Index Fund Sensex Growth ₹156.11
↑ 0.43 ₹89 11.1 5.5 4.3 16.4 18.4 8.2 Franklin India Index Fund Nifty Plan Growth ₹205.016
↑ 0.49 ₹737 11.5 6.5 5.5 17.7 19.6 9.5 SBI Nifty Index Fund Growth ₹224.656
↑ 0.54 ₹9,839 11.6 6.6 5.5 17.9 19.9 9.5 IDBI Nifty Index Fund Growth ₹36.2111
↓ -0.02 ₹208 9.1 11.9 16.2 20.3 11.7 Nippon India Index Fund - Nifty Plan Growth ₹43.1239
↑ 0.10 ₹2,483 11.6 6.6 5.5 17.8 19.5 9.4 ICICI Prudential Nifty Next 50 Index Fund Growth ₹60.1818
↑ 0.22 ₹7,479 11.6 -0.9 -6.2 22.4 21.1 27.2 IDBI Nifty Junior Index Fund Growth ₹50.8234
↑ 0.19 ₹97 11.6 -0.9 -6 22.2 20.8 26.9 LIC MF Index Fund Nifty Growth ₹140.604
↑ 0.34 ₹331 11.4 6.3 4.9 17.2 19.2 8.8 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 4 Jul 25
*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 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 The investment objective of the scheme is to invest in the stocks and equity related instruments comprising the CNX Nifty Junior 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 CNX Nifty Junior Index. The scheme will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the CNX Nifty Junior Index (Total Returns Index) and the scheme. IDBI Nifty Junior Index Fund is a Others - Index Fund fund was launched on 20 Sep 10. It is a fund with Moderately High risk and has given a Below is the key information for IDBI Nifty Junior Index Fund 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 10.3% since its launch. Ranked 74 in Index Fund category. Return for 2024 was 8.9% , 2023 was 19.5% and 2022 was 5% . Nippon India Index Fund - Sensex Plan
Growth Launch Date 28 Sep 10 NAV (04 Jul 25) ₹42.4156 ↑ 0.12 (0.28 %) Net Assets (Cr) ₹890 on 31 May 25 Category Others - Index Fund AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 0.58 Sharpe Ratio 0.33 Information Ratio -10.19 Alpha Ratio -0.56 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 30 Jun 20 ₹10,000 30 Jun 21 ₹15,110 30 Jun 22 ₹15,369 30 Jun 23 ₹18,833 30 Jun 24 ₹23,159 30 Jun 25 ₹24,661 Returns for Nippon India Index Fund - Sensex Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Jul 25 Duration Returns 1 Month 3.2% 3 Month 11.2% 6 Month 5.9% 1 Year 5% 3 Year 16.9% 5 Year 19% 10 Year 15 Year Since launch 10.3% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Himanshu Mange 23 Dec 23 1.44 Yr. Data below for Nippon India Index Fund - Sensex Plan as on 31 May 25
Asset Allocation
Asset Class Value Cash 0.27% Equity 99.73% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | 50018016% ₹138 Cr 712,150
↑ 4,623 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | 53217411% ₹97 Cr 669,201
↑ 4,344 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 10 | 50032510% ₹90 Cr 636,179
↑ 4,129 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | 5002096% ₹52 Cr 335,753
↑ 2,179 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 10 | 5324545% ₹47 Cr 251,979
↑ 1,636 Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | 5005105% ₹40 Cr 109,904
↑ 714 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | 5008754% ₹36 Cr 870,584
↑ 5,651 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Oct 10 | 5325404% ₹33 Cr 95,252
↑ 619 Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | 5322154% ₹32 Cr 267,834
↑ 1,738 State Bank of India (Financial Services)
Equity, Since 31 Oct 10 | 5001123% ₹29 Cr 360,823
↑ 2,343 2. LIC MF Index Fund Sensex
CAGR/Annualized return of 13.4% since its launch. Ranked 79 in Index Fund category. Return for 2024 was 8.2% , 2023 was 19% and 2022 was 4.6% . LIC MF Index Fund Sensex
Growth Launch Date 14 Nov 02 NAV (04 Jul 25) ₹156.11 ↑ 0.43 (0.27 %) Net Assets (Cr) ₹89 on 31 May 25 Category Others - Index Fund AMC LIC Mutual Fund Asset Mgmt Co Ltd Rating ☆ Risk Moderately High Expense Ratio 0.98 Sharpe Ratio 0.28 Information Ratio -9.84 Alpha Ratio -1.16 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 30 Jun 20 ₹10,000 30 Jun 21 ₹15,025 30 Jun 22 ₹15,199 30 Jun 23 ₹18,607 30 Jun 24 ₹22,763 30 Jun 25 ₹24,091 Returns for LIC MF Index Fund Sensex
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Jul 25 Duration Returns 1 Month 3.2% 3 Month 11.1% 6 Month 5.5% 1 Year 4.3% 3 Year 16.4% 5 Year 18.4% 10 Year 15 Year Since launch 13.4% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Sumit Bhatnagar 3 Oct 23 1.66 Yr. Data below for LIC MF Index Fund Sensex as on 31 May 25
Asset Allocation
Asset Class Value Cash 0.48% Equity 99.52% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | 50018016% ₹14 Cr 71,413
↑ 155 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 09 | 53217411% ₹10 Cr 67,145
↑ 394 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 09 | 50032510% ₹9 Cr 63,780
↑ 322 Infosys Ltd (Technology)
Equity, Since 31 Mar 09 | 5002096% ₹5 Cr 33,612 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Apr 09 | 5324545% ₹5 Cr 25,310 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Mar 09 | 5005105% ₹4 Cr 10,982 ITC Ltd (Consumer Defensive)
Equity, Since 30 Sep 11 | 5008754% ₹4 Cr 87,321
↑ 718 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 09 | 5325404% ₹3 Cr 9,534 Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | 5322154% ₹3 Cr 26,684 State Bank of India (Financial Services)
Equity, Since 31 Mar 09 | 5001123% ₹3 Cr 35,996 3. Franklin India Index Fund Nifty Plan
CAGR/Annualized return of 12.9% since its launch. Ranked 76 in Index Fund category. Return for 2024 was 9.5% , 2023 was 20.2% and 2022 was 4.9% . Franklin India Index Fund Nifty Plan
Growth Launch Date 4 Aug 00 NAV (04 Jul 25) ₹205.016 ↑ 0.49 (0.24 %) Net Assets (Cr) ₹737 on 31 May 25 Category Others - Index Fund AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆ Risk Moderately High Expense Ratio 0.62 Sharpe Ratio 0.3 Information Ratio -3.73 Alpha Ratio -0.55 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 30 Jun 20 ₹10,000 30 Jun 21 ₹15,291 30 Jun 22 ₹15,431 30 Jun 23 ₹18,818 30 Jun 24 ₹23,635 30 Jun 25 ₹25,278 Returns for Franklin India Index Fund Nifty Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Jul 25 Duration Returns 1 Month 3.6% 3 Month 11.5% 6 Month 6.5% 1 Year 5.5% 3 Year 17.7% 5 Year 19.6% 10 Year 15 Year Since launch 12.9% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Sandeep Manam 18 Oct 21 3.62 Yr. Shyam Sriram 26 Sep 24 0.68 Yr. Data below for Franklin India Index Fund Nifty Plan as on 31 May 25
Asset Allocation
Asset Class Value Cash 0.46% Equity 99.54% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | HDFCBANK13% ₹97 Cr 499,086
↓ -2,153 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | ICICIBANK9% ₹67 Cr 462,706
↓ -2,289 Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE9% ₹63 Cr 444,008
↓ -2,075 Infosys Ltd (Technology)
Equity, Since 29 Feb 12 | INFY5% ₹37 Cr 235,671
↓ -1,105 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 04 | BHARTIARTL4% ₹33 Cr 175,629
↓ -824 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Jun 12 | LT4% ₹28 Cr 76,852
↓ -361 ITC Ltd (Consumer Defensive)
Equity, Since 31 Mar 11 | ITC3% ₹25 Cr 609,403
↓ -2,860 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS3% ₹23 Cr 66,862
↓ -313 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 09 | AXISBANK3% ₹22 Cr 187,072
↓ -878 State Bank of India (Financial Services)
Equity, Since 31 Jan 03 | SBIN3% ₹20 Cr 251,517
↓ -1,180 4. SBI Nifty Index Fund
CAGR/Annualized return of 14.4% since its launch. Ranked 75 in Index Fund category. Return for 2024 was 9.5% , 2023 was 20.7% and 2022 was 5.1% . SBI Nifty Index Fund
Growth Launch Date 17 Jan 02 NAV (04 Jul 25) ₹224.656 ↑ 0.54 (0.24 %) Net Assets (Cr) ₹9,839 on 31 May 25 Category Others - Index Fund AMC SBI Funds Management Private Limited Rating ☆ Risk Moderately High Expense Ratio 0.5 Sharpe Ratio 0.31 Information Ratio -21.57 Alpha Ratio -0.53 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 30 Jun 20 ₹10,000 30 Jun 21 ₹15,345 30 Jun 22 ₹15,507 30 Jun 23 ₹18,951 30 Jun 24 ₹23,875 30 Jun 25 ₹25,541 Returns for SBI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Jul 25 Duration Returns 1 Month 3.6% 3 Month 11.6% 6 Month 6.6% 1 Year 5.5% 3 Year 17.9% 5 Year 19.9% 10 Year 15 Year Since launch 14.4% Historical performance (Yearly) on absolute basis
Year Returns 2024 9.5% 2023 20.7% 2022 5.1% 2021 24.7% 2020 14.6% 2019 12.5% 2018 3.8% 2017 29.1% 2016 3.4% 2015 -4.2% Fund Manager information for SBI Nifty Index Fund
Name Since Tenure Raviprakash Sharma 1 Feb 11 14.34 Yr. Pradeep Kesavan 1 Dec 23 1.5 Yr. Data below for SBI Nifty Index Fund as on 31 May 25
Asset Allocation
Asset Class Value Cash 0.15% Equity 99.85% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 03 | HDFCBANK13% ₹1,298 Cr 6,674,893
↑ 63,346 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK9% ₹895 Cr 6,193,221
↑ 58,775 Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE9% ₹845 Cr 5,944,884
↑ 56,420 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY5% ₹494 Cr 3,158,636
↑ 29,976 Bharti Airtel Ltd (Communication Services)
Equity, Since 29 Feb 04 | BHARTIARTL4% ₹437 Cr 2,353,919
↑ 22,338 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Dec 04 | LT4% ₹379 Cr 1,030,039
↑ 9,777 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC3% ₹341 Cr 8,167,686
↑ 77,513 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS3% ₹310 Cr 896,133
↑ 8,502 Axis Bank Ltd (Financial Services)
Equity, Since 28 Feb 10 | AXISBANK3% ₹299 Cr 2,507,280
↑ 23,796 State Bank of India (Financial Services)
Equity, Since 31 Jan 03 | SBIN3% ₹274 Cr 3,371,029
↑ 31,993 5. IDBI Nifty Index Fund
CAGR/Annualized return of 10.3% since its launch. Ranked 83 in Index Fund category. . 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.
Date Value 30 Jun 20 ₹10,000 30 Jun 21 ₹15,187 30 Jun 22 ₹15,311 30 Jun 23 ₹18,625 Returns for IDBI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Jul 25 Duration Returns 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
Year Returns 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Fund Manager information for IDBI Nifty Index Fund
Name Since Tenure Data below for IDBI Nifty Index Fund as on 30 Jun 23
Asset Allocation
Asset Class Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 6. Nippon India Index Fund - Nifty Plan
CAGR/Annualized return of 10.4% since its launch. Ranked 78 in Index Fund category. Return for 2024 was 9.4% , 2023 was 20.5% and 2022 was 4.6% . Nippon India Index Fund - Nifty Plan
Growth Launch Date 28 Sep 10 NAV (04 Jul 25) ₹43.1239 ↑ 0.10 (0.24 %) Net Assets (Cr) ₹2,483 on 31 May 25 Category Others - Index Fund AMC Nippon Life Asset Management Ltd. Rating ☆ Risk Moderately High Expense Ratio 0.56 Sharpe Ratio 0.3 Information Ratio -11.34 Alpha Ratio -0.57 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 30 Jun 20 ₹10,000 30 Jun 21 ₹15,249 30 Jun 22 ₹15,319 30 Jun 23 ₹18,686 30 Jun 24 ₹23,515 30 Jun 25 ₹25,154 Returns for Nippon India Index Fund - Nifty Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Jul 25 Duration Returns 1 Month 3.6% 3 Month 11.6% 6 Month 6.6% 1 Year 5.5% 3 Year 17.8% 5 Year 19.5% 10 Year 15 Year Since launch 10.4% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Himanshu Mange 23 Dec 23 1.44 Yr. Data below for Nippon India Index Fund - Nifty Plan as on 31 May 25
Asset Allocation
Asset Class Value Cash 0.21% Equity 99.79% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | HDFCBANK13% ₹327 Cr 1,683,215
↓ -4,758 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | ICICIBANK9% ₹226 Cr 1,561,751
↓ -4,414 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 10 | RELIANCE9% ₹213 Cr 1,499,127
↓ -4,238 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY5% ₹124 Cr 796,517
↓ -2,251 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 10 | BHARTIARTL4% ₹110 Cr 593,591
↓ -1,678 Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | LT4% ₹95 Cr 259,746
↓ -734 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC3% ₹86 Cr 2,059,653
↓ -5,822 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Oct 10 | TCS3% ₹78 Cr 225,979
↓ -639 Axis Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | AXISBANK3% ₹75 Cr 632,264
↓ -1,787 State Bank of India (Financial Services)
Equity, Since 31 Oct 10 | SBIN3% ₹69 Cr 850,075
↓ -2,403 7. ICICI Prudential Nifty Next 50 Index Fund
CAGR/Annualized return of 12.7% since its launch. Ranked 5 in Index Fund category. Return for 2024 was 27.2% , 2023 was 26.3% and 2022 was 0.1% . ICICI Prudential Nifty Next 50 Index Fund
Growth Launch Date 25 Jun 10 NAV (04 Jul 25) ₹60.1818 ↑ 0.22 (0.37 %) Net Assets (Cr) ₹7,479 on 31 May 25 Category Others - Index Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 0.7 Sharpe Ratio -0.27 Information Ratio -7.06 Alpha Ratio -1.02 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 30 Jun 20 ₹10,000 30 Jun 21 ₹14,882 30 Jun 22 ₹14,153 30 Jun 23 ₹16,939 30 Jun 24 ₹27,688 30 Jun 25 ₹26,643 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 4 Jul 25 Duration Returns 1 Month 2.6% 3 Month 11.6% 6 Month -0.9% 1 Year -6.2% 3 Year 22.4% 5 Year 21.1% 10 Year 15 Year Since launch 12.7% Historical performance (Yearly) on absolute basis
Year Returns 2024 27.2% 2023 26.3% 2022 0.1% 2021 29.5% 2020 14.3% 2019 0.6% 2018 -8.8% 2017 45.7% 2016 7.6% 2015 6.2% Fund Manager information for ICICI Prudential Nifty Next 50 Index Fund
Name Since Tenure Nishit Patel 18 Jan 21 4.37 Yr. Ajaykumar Solanki 1 Feb 24 1.33 Yr. Ashwini Shinde 18 Dec 24 0.45 Yr. Data below for ICICI Prudential Nifty Next 50 Index Fund as on 31 May 25
Asset Allocation
Asset Class Value Cash 0.07% Equity 99.93% Top Securities Holdings / Portfolio
Name Holding Value Quantity InterGlobe Aviation Ltd (Industrials)
Equity, Since 30 Sep 16 | INDIGO4% ₹334 Cr 626,527
↑ 6,475 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 30 Sep 22 | HAL4% ₹302 Cr 606,802
↑ 6,268 Divi's Laboratories Ltd (Healthcare)
Equity, Since 30 Sep 24 | DIVISLAB4% ₹268 Cr 405,439
↑ 4,192 Vedanta Ltd (Basic Materials)
Equity, Since 31 Mar 21 | VEDL3% ₹236 Cr 5,418,850
↑ 55,892 Indian Hotels Co Ltd (Consumer Cyclical)
Equity, Since 31 Mar 25 | INDHOTEL3% ₹216 Cr 2,804,405
↑ 28,933 Cholamandalam Investment and Finance Co Ltd (Financial Services)
Equity, Since 30 Sep 21 | CHOLAFIN3% ₹215 Cr 1,344,355
↑ 13,879 Tata Power Co Ltd (Utilities)
Equity, Since 31 Aug 22 | TATAPOWER3% ₹211 Cr 5,362,144
↑ 55,311 TVS Motor Co Ltd (Consumer Cyclical)
Equity, Since 30 Sep 23 | TVSMOTOR3% ₹209 Cr 750,035
↑ 7,747 Britannia Industries Ltd (Consumer Defensive)
Equity, Since 31 Mar 25 | BRITANNIA3% ₹208 Cr 376,641
↑ 3,895 Varun Beverages Ltd (Consumer Defensive)
Equity, Since 31 Mar 23 | VBL3% ₹204 Cr 4,283,931
↑ 44,190 8. IDBI Nifty Junior Index Fund
CAGR/Annualized return of 11.6% since its launch. Ranked 8 in Index Fund category. Return for 2024 was 26.9% , 2023 was 25.7% and 2022 was 0.4% . IDBI Nifty Junior Index Fund
Growth Launch Date 20 Sep 10 NAV (04 Jul 25) ₹50.8234 ↑ 0.19 (0.37 %) Net Assets (Cr) ₹97 on 31 May 25 Category Others - Index Fund AMC IDBI Asset Management Limited Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 0.87 Sharpe Ratio -0.27 Information Ratio -7.09 Alpha Ratio -1.17 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 30 Jun 20 ₹10,000 30 Jun 21 ₹14,748 30 Jun 22 ₹14,041 30 Jun 23 ₹16,793 30 Jun 24 ₹27,299 30 Jun 25 ₹26,301 Returns for IDBI Nifty Junior Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Jul 25 Duration Returns 1 Month 2.8% 3 Month 11.6% 6 Month -0.9% 1 Year -6% 3 Year 22.2% 5 Year 20.8% 10 Year 15 Year Since launch 11.6% Historical performance (Yearly) on absolute basis
Year Returns 2024 26.9% 2023 25.7% 2022 0.4% 2021 29.6% 2020 13.7% 2019 0.5% 2018 -9.3% 2017 43.6% 2016 6.9% 2015 5.8% Fund Manager information for IDBI Nifty Junior Index Fund
Name Since Tenure Sumit Bhatnagar 3 Oct 23 1.66 Yr. Data below for IDBI Nifty Junior Index Fund as on 31 May 25
Asset Allocation
Asset Class Value Equity 100.03% Top Securities Holdings / Portfolio
Name Holding Value Quantity InterGlobe Aviation Ltd (Industrials)
Equity, Since 30 Sep 16 | INDIGO5% ₹4 Cr 8,171
↑ 03 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 30 Sep 22 | HAL4% ₹4 Cr 7,861
↓ -50 Divi's Laboratories Ltd (Healthcare)
Equity, Since 30 Sep 24 | DIVISLAB4% ₹3 Cr 5,281
↓ -06 Vedanta Ltd (Basic Materials)
Equity, Since 31 Mar 21 | VEDL3% ₹3 Cr 71,038
↑ 420 Indian Hotels Co Ltd (Consumer Cyclical)
Equity, Since 31 Mar 25 | INDHOTEL3% ₹3 Cr 36,374
↓ -236 Cholamandalam Investment and Finance Co Ltd (Financial Services)
Equity, Since 30 Sep 21 | CHOLAFIN3% ₹3 Cr 17,350
↓ -182 TVS Motor Co Ltd (Consumer Cyclical)
Equity, Since 30 Sep 23 | TVSMOTOR3% ₹3 Cr 9,825
↑ 105 Tata Power Co Ltd (Utilities)
Equity, Since 31 Aug 22 | TATAPOWER3% ₹3 Cr 69,096
↓ -344 Britannia Industries Ltd (Consumer Defensive)
Equity, Since 31 Mar 25 | BRITANNIA3% ₹3 Cr 4,891
↓ -07 Varun Beverages Ltd (Consumer Defensive)
Equity, Since 31 Mar 23 | VBL3% ₹3 Cr 55,632
↑ 69 9. LIC MF Index Fund Nifty
CAGR/Annualized return of 12.9% since its launch. Ranked 80 in Index Fund category. Return for 2024 was 8.8% , 2023 was 19.8% and 2022 was 4.7% . LIC MF Index Fund Nifty
Growth Launch Date 14 Nov 02 NAV (04 Jul 25) ₹140.604 ↑ 0.34 (0.24 %) Net Assets (Cr) ₹331 on 31 May 25 Category Others - Index Fund AMC LIC Mutual Fund Asset Mgmt Co Ltd Rating ☆ Risk Moderately High Expense Ratio 0.95 Sharpe Ratio 0.26 Information Ratio -12.06 Alpha Ratio -1.12 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 30 Jun 20 ₹10,000 30 Jun 21 ₹15,229 30 Jun 22 ₹15,311 30 Jun 23 ₹18,624 30 Jun 24 ₹23,309 30 Jun 25 ₹24,796 Returns for LIC MF Index Fund Nifty
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Jul 25 Duration Returns 1 Month 3.5% 3 Month 11.4% 6 Month 6.3% 1 Year 4.9% 3 Year 17.2% 5 Year 19.2% 10 Year 15 Year Since launch 12.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 8.8% 2023 19.8% 2022 4.7% 2021 23.8% 2020 14.7% 2019 12.6% 2018 2.6% 2017 28.6% 2016 2.7% 2015 -4.1% Fund Manager information for LIC MF Index Fund Nifty
Name Since Tenure Sumit Bhatnagar 3 Oct 23 1.66 Yr. Data below for LIC MF Index Fund Nifty as on 31 May 25
Asset Allocation
Asset Class Value Cash 0.2% Equity 99.8% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 09 | HDFCBANK13% ₹44 Cr 223,950
↑ 746 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 09 | ICICIBANK9% ₹30 Cr 207,965
↑ 2,439 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 12 | RELIANCE9% ₹28 Cr 199,733
↓ -1,456 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY5% ₹17 Cr 106,735
↓ -922 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Apr 09 | BHARTIARTL4% ₹15 Cr 79,351
↑ 870 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Apr 09 | LT4% ₹13 Cr 34,640
↓ -502 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | ITC3% ₹11 Cr 274,896
↓ -825 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 05 | TCS3% ₹10 Cr 30,125
↓ -409 Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | AXISBANK3% ₹10 Cr 84,358
↓ -188 State Bank of India (Financial Services)
Equity, Since 30 Apr 09 | SBIN3% ₹9 Cr 113,648
↑ 136
Why Passive Index Funds are Better?
In 2024, passive investment options like gold ETFs and index funds gained significant traction among investors seeking cost-effective and low-maintenance avenues to participate in market movements.
Surge in Gold ETFs
Gold Exchange-Traded Funds (ETFs) witnessed a remarkable surge in 2024, with assets under management (AUM) growing by 63% to reach ₹44,595 crore by the end of December. This growth was driven by rising gold prices and strong investor inflows, indicating a preference for simplicity and tax Efficiency.
Performance of Passive Index Funds
Passive index funds outperformed many actively managed funds in 2024, Offering investors low expense ratios, diversification, and transparency. Over 300 passive mutual funds delivered returns of up to 51% during the year. Notably, the Mirae Asset NYSE FANG+ ETF led with a 50.90% return, while other top performers included healthcare and CPSE ETFs.
The expense ratios for passive index funds remained low, ranging from 0.10% to 0.50%, compared to 1.5% to 2% for actively managed funds. This cost efficiency contributed to higher net returns for investors choosing passive funds.
📉 Underperformance of Actively Managed Funds
In 2024, many actively managed large-cap mutual funds underperformed their benchmark indices. For instance, the average return for large-cap mutual funds was 19.72%, while their benchmarks, NIFTY 100 - TRI and BSE 100 - TRI, offered returns of 18.21% and 18.24%, respectively.
The Nifty 50 index delivered a return of 8.8% in 2024, reflecting a challenging year for Indian equities due to factors like slowing corporate Earnings and significant foreign fund outflows
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 require active participation from fund managers | Fund managers perform in-depth research and take active decisions to select securities |
| Less expensive | Higher expense due to active management and research |
| Popular due to low expense ratios | May be less popular due to higher fees |
Risks of Investing In Index Funds
No Flexibility of Index Mutual Funds
One major disadvantage is the lack of flexibility. Since the funds only track the index, they may miss out on opportunities for higher returns that arise from market anomalies. Typically, value stocks that are not part of the index can be excluded from such portfolios.
Market Risk on Index Mutual Funds
These funds are directly linked to market performance. So, when the stock market falls, the value of the index mutual fund also falls. Despite this, top index funds can still be beneficial for investors seeking equity exposure with lower management risk. Experts suggest allocating 5-6% of your portfolio to index funds for balanced growth.
Why Passive Index Funds Are Better?
The impressive growth in passive investment options, such as gold ETFs and index funds, underscores a significant trend: investors are increasingly gravitating toward cost-efficient, low-maintenance avenues to participate in market movements. For instance, gold ETFs, much like passive index funds, offer a streamlined way to mirror market performance without the complexities of active management.
In 2024, passive index funds demonstrated remarkable performance:
Over 300 passive mutual funds delivered returns of up to 51%. The Mirae Asset NYSE FANG+ ETF led with a 50.90% return, followed by Motilal Oswal BSE Healthcare ETF at 40.61%, and CPSE ETF at 37.80%.
The Nifty 50 index achieved a return of 13.72%, while the BSE Sensex posted a 13.29% return.
These figures highlight the potential of passive funds to deliver competitive returns. Moreover, passive index funds typically have lower expense ratios, ranging from 0.10% to 0.50%, compared to 1.5% to 2% for actively managed funds. This cost efficiency can significantly boost net returns over time.
In terms of investor behavior, 2024 saw substantial inflows into passive funds:
- Passive funds recorded net inflows of ₹1.32 lakh crore. Equity and debt ETFs saw net inflows of about ₹69,800 crore, while index funds attracted ₹53,700 crore.
- The Assets Under Management (AUM) for passive mutual funds surged to ₹11 lakh crore by September 2024, marking a 1.5x increase from the previous year.
These trends indicate a growing preference among investors for passive investment strategies, driven by their simplicity, transparency, and cost-effectiveness.
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 funds. These funds track the composition and behaviour of major indices like the NSE Nifty and BSE Sensex. Since they are structured based on the performance of multiple companies, they reduce individual stock risk and offer stable growth potential.
2. How to select a particular index MF?
A: Choose an index mutual fund based on long-term performance, tracking error, expense ratio, and fund house reputation. Some reliable fund houses include SBI, LIC, ICICI Prudential, UTI, and others.
3. What is the main advantage of investing in an Index fund?
A: Index funds are passively managed, which results in lower expenses. The total expense ratio (TER) is significantly lower than actively managed funds, often ranging between 0.2% to 0.5%.
4. Do Passive Index Funds guarantee returns?
A: No, they don’t guarantee returns. These funds mirror their benchmark index, which is subject to market fluctuations.
5. Do Passive Index Funds pay dividends?
A: Some index funds offer dividend options, but most investors opt for the growth option where returns are reinvested for compounding benefits.
6. How do Index Funds add to diversification?
A: Index funds invest in a broad Range of companies that form the index. This built-in diversification reduces the risk of losses due to underperformance of any single company.
7. When should you consider investing in Index funds?
A: Index funds are suitable when you have a long-term investment horizon of at least 5 years and want to avoid stock picking or high management fees.
8. Is there some way that I can select the best Index fund?
A: If you're a beginner, consult a financial advisor or use reliable financial platforms that compare fund performance, expense ratios, and tracking errors to help you choose.
9. Who is ideally suited to invest in Index Funds?
A: Index funds are ideal for risk-averse investors seeking low-cost, diversified exposure to the equity market without the need for active management.
By Rohini Hiremath
Rohini Hiremath works as a Content Head at Fincash.com. Her passion is to deliver financial knowledge to the masses in simple language. She has a strong background in start-ups and diverse content. Rohini is also an SEO expert, coach and motivating team head!
You can connect with her at rohini.hiremath@fincash.com
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