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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 20 - 21
- 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?
Top 9 Others - Index Fund Funds
Best Index Mutual Funds for Investments 2020
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.
Index funds 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.
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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.
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 20 - 21
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2019 (%) Nippon India Index Fund - Sensex Plan Growth ₹18.6336
↓ -0.01 ₹85 20 -7.8 3 5.5 6.1 14.2 LIC MF Index Fund Sensex Growth ₹70.1915
↓ -0.03 ₹23 19.9 -8 3.1 5.2 5.7 14.6 ICICI Prudential Nifty Index Fund Growth ₹107.83
↑ 0.09 ₹925 20.8 -8 2.5 3.6 5.7 12.8 UTI Nifty Index Fund Growth ₹73.0544
↑ 0.06 ₹2,362 21 -7.9 2.7 4.2 6.2 13.2 Franklin India Index Fund Nifty Plan Growth ₹87.7294
↑ 0.07 ₹311 20.4 -8.2 1.8 3.2 5.3 12 SBI Nifty Index Fund Growth ₹95.1332
↑ 0.08 ₹907 20.8 -8.4 1.8 3.5 5.6 12.5 IDBI Nifty Index Fund Growth ₹20.4568
↑ 0.02 ₹196 20.6 -8.2 1.9 3 4.8 12.3 Nippon India Index Fund - Nifty Plan Growth ₹18.5211
↑ 0.01 ₹212 20.5 -8.4 1.7 3.3 5.3 12.3 LIC MF Index Fund Nifty Growth ₹61.3
↑ 0.04 ₹24 20.5 -8.2 2.3 3.2 5.1 12.6 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 5 Aug 20
*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 6.5% since its launch. Ranked 74 in Index Fund category. Return for 2019 was 14.2% , 2018 was 6.2% and 2017 was 27.9% . Nippon India Index Fund - Sensex Plan
Growth Launch Date 28 Sep 10 NAV (05 Aug 20) ₹18.6336 ↓ -0.01 (-0.04 %) Net Assets (Cr) ₹85 on 30 Jun 20 Category Others - Index Fund AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 0.93 Sharpe Ratio -0.32 Information Ratio -2.48 Alpha Ratio -1.03 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 Jul 15 ₹10,000 31 Jul 16 ₹9,977 31 Jul 17 ₹11,577 31 Jul 18 ₹13,430 31 Jul 19 ₹13,385 31 Jul 20 ₹13,484 Returns for Nippon India Index Fund - Sensex Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 20 Duration Returns 1 Month 4.8% 3 Month 20% 6 Month -7.8% 1 Year 3% 3 Year 5.5% 5 Year 6.1% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 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% 2010 Fund Manager information for Nippon India Index Fund - Sensex Plan
Name Since Tenure Mehul Dama 6 Nov 18 1.65 Yr. Data below for Nippon India Index Fund - Sensex Plan as on 30 Jun 20
Asset Allocation
Asset Class Value Cash 1.91% Equity 98.09% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 10 | RELIANCE14% ₹12 Cr 70,199
↓ -1,912 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | HDFCBANK12% ₹10 Cr 93,970
↓ -2,559 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Oct 10 | HDFC8% ₹7 Cr 38,081
↓ -1,037 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY7% ₹6 Cr 82,839
↓ -2,256 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | ICICIBANK6% ₹5 Cr 142,205
↓ -3,873 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Oct 10 | TCS6% ₹5 Cr 23,292
↓ -635 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Oct 10 | 5006965% ₹4 Cr 19,791
↓ -539 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Jun 17 | KOTAKBANK4% ₹4 Cr 27,198
↑ 321 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC4% ₹4 Cr 188,952
↓ -5,146 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 10 | BHARTIARTL4% ₹3 Cr 53,216
↓ -1,449 2. LIC MF Index Fund Sensex
CAGR/Annualized return of 12.2% since its launch. Ranked 79 in Index Fund category. Return for 2019 was 14.6% , 2018 was 5.6% and 2017 was 27.4% . LIC MF Index Fund Sensex
Growth Launch Date 14 Nov 02 NAV (05 Aug 20) ₹70.1915 ↓ -0.03 (-0.04 %) Net Assets (Cr) ₹23 on 30 Jun 20 Category Others - Index Fund AMC LIC Mutual Fund Asset Mgmt Co Ltd Rating ☆ Risk Moderately High Expense Ratio 1.66 Sharpe Ratio -0.31 Information Ratio -3.47 Alpha Ratio -0.8 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 Jul 15 ₹10,000 31 Jul 16 ₹9,927 31 Jul 17 ₹11,451 31 Jul 18 ₹13,184 31 Jul 19 ₹13,137 31 Jul 20 ₹13,243 Returns for LIC MF Index Fund Sensex
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 20 Duration Returns 1 Month 4.8% 3 Month 19.9% 6 Month -8% 1 Year 3.1% 3 Year 5.2% 5 Year 5.7% 10 Year 15 Year Since launch 12.2% Historical performance (Yearly) on absolute basis
Year Returns 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% 2010 18% Fund Manager information for LIC MF Index Fund Sensex
Name Since Tenure Ritu Modi 1 Nov 19 0.66 Yr. Data below for LIC MF Index Fund Sensex as on 30 Jun 20
Asset Allocation
Asset Class Value Cash 1.09% Equity 98.91% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 09 | RELIANCE14% ₹3 Cr 19,466
↓ -296 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | HDFCBANK12% ₹3 Cr 25,990
↓ -443 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 09 | HDFC8% ₹2 Cr 10,529
↓ -163 Infosys Ltd (Technology)
Equity, Since 31 Mar 09 | INFY7% ₹2 Cr 22,846
↓ -411 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 09 | ICICIBANK6% ₹1 Cr 39,282
↓ -581 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 09 | TCS6% ₹1 Cr 6,466
↓ -72 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Oct 11 | 5006965% ₹1 Cr 5,452
↓ -41 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Jun 17 | KOTAKBANK4% ₹1 Cr 7,543
↑ 226 ITC Ltd (Consumer Defensive)
Equity, Since 30 Sep 11 | ITC4% ₹1 Cr 52,083
↓ -926 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Apr 09 | BHARTIARTL4% ₹1 Cr 14,598
↑ 2,067 3. ICICI Prudential Nifty Index Fund
CAGR/Annualized return of 13.8% since its launch. Ranked 71 in Index Fund category. Return for 2019 was 12.8% , 2018 was 3.4% and 2017 was 28.7% . ICICI Prudential Nifty Index Fund
Growth Launch Date 26 Feb 02 NAV (05 Aug 20) ₹107.83 ↑ 0.09 (0.08 %) Net Assets (Cr) ₹925 on 30 Jun 20 Category Others - Index Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.92 Sharpe Ratio -0.34 Information Ratio -6.14 Alpha Ratio -0.64 Min Investment 5,000 Min SIP Investment 100 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Jul 15 ₹10,000 31 Jul 16 ₹10,175 31 Jul 17 ₹11,899 31 Jul 18 ₹13,417 31 Jul 19 ₹13,193 31 Jul 20 ₹13,191 Returns for ICICI Prudential Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 20 Duration Returns 1 Month 4.8% 3 Month 20.8% 6 Month -8% 1 Year 2.5% 3 Year 3.6% 5 Year 5.7% 10 Year 15 Year Since launch 13.8% Historical performance (Yearly) on absolute basis
Year Returns 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% 2010 18.7% Fund Manager information for ICICI Prudential Nifty Index Fund
Name Since Tenure Kayzad Eghlim 1 Aug 09 10.92 Yr. Data below for ICICI Prudential Nifty Index Fund as on 30 Jun 20
Asset Allocation
Asset Class Value Cash 0.2% Equity 99.8% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 05 | RELIANCE12% ₹115 Cr 673,834
↓ -13,854 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | HDFCBANK11% ₹98 Cr 919,177
↓ -2,090 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 12 | HDFC7% ₹64 Cr 367,069
↓ -1,074 Infosys Ltd (Technology)
Equity, Since 31 Mar 05 | INFY6% ₹57 Cr 779,539
↑ 4,324 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | ICICIBANK5% ₹48 Cr 1,379,393
↑ 9,452 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 05 | TCS5% ₹46 Cr 222,939
↓ -776 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 29 Feb 12 | KOTAKBANK5% ₹42 Cr 310,170
↑ 25,445 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Mar 05 | 5006964% ₹41 Cr 190,015
↑ 36,408 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC4% ₹36 Cr 1,857,419
↑ 1,226 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Aug 09 | BHARTIARTL3% ₹29 Cr 509,202
↑ 37,238 4. UTI Nifty Index Fund
CAGR/Annualized return of 10.2% since its launch. Ranked 68 in Index Fund category. Return for 2019 was 13.2% , 2018 was 4.3% and 2017 was 29.7% . UTI Nifty Index Fund
Growth Launch Date 6 Mar 00 NAV (05 Aug 20) ₹73.0544 ↑ 0.06 (0.08 %) Net Assets (Cr) ₹2,362 on 30 Jun 20 Category Others - Index Fund AMC UTI Asset Management Company Ltd Rating ☆☆ Risk Moderately High Expense Ratio 0.2 Sharpe Ratio -0.33 Information Ratio -2.25 Alpha Ratio -0.4 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Jul 15 ₹10,000 31 Jul 16 ₹10,227 31 Jul 17 ₹12,017 31 Jul 18 ₹13,684 31 Jul 19 ₹13,537 31 Jul 20 ₹13,556 Returns for UTI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 20 Duration Returns 1 Month 4.8% 3 Month 21% 6 Month -7.9% 1 Year 2.7% 3 Year 4.2% 5 Year 6.2% 10 Year 15 Year Since launch 10.2% Historical performance (Yearly) on absolute basis
Year Returns 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% 2010 17.7% Fund Manager information for UTI Nifty Index Fund
Name Since Tenure Sharwan Kumar Goyal 1 May 19 1.17 Yr. Data below for UTI Nifty Index Fund as on 30 Jun 20
Asset Allocation
Asset Class Value Equity 100.03% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE12% ₹294 Cr 1,726,230
↓ -15,773 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | HDFCBANK11% ₹252 Cr 2,360,416
↑ 26,983 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 12 | HDFC7% ₹165 Cr 941,958
↑ 10,366 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY6% ₹147 Cr 1,994,790
↑ 21,304 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK5% ₹124 Cr 3,526,648
↑ 39,232 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS5% ₹119 Cr 572,197
↑ 6,082 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Dec 10 | KOTAKBANK5% ₹108 Cr 797,471
↑ 76,145 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | 5006964% ₹106 Cr 486,238
↑ 101,313 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | ITC4% ₹93 Cr 4,753,016
↑ 50,517 Bharti Airtel Ltd (Communication Services)
Equity, Since 29 Feb 04 | BHARTIARTL3% ₹73 Cr 1,307,290
↑ 102,080 5. Franklin India Index Fund Nifty Plan
CAGR/Annualized return of 11.5% since its launch. Ranked 76 in Index Fund category. Return for 2019 was 12% , 2018 was 3.2% and 2017 was 28.3% . Franklin India Index Fund Nifty Plan
Growth Launch Date 4 Aug 00 NAV (05 Aug 20) ₹87.7294 ↑ 0.07 (0.08 %) Net Assets (Cr) ₹311 on 30 Jun 20 Category Others - Index Fund AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆ Risk Moderately High Expense Ratio 1.09 Sharpe Ratio -0.37 Information Ratio -3.59 Alpha Ratio -1.68 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 Jul 15 ₹10,000 31 Jul 16 ₹10,148 31 Jul 17 ₹11,821 31 Jul 18 ₹13,299 31 Jul 19 ₹13,037 31 Jul 20 ₹12,940 Returns for Franklin India Index Fund Nifty Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 20 Duration Returns 1 Month 4.8% 3 Month 20.4% 6 Month -8.2% 1 Year 1.8% 3 Year 3.2% 5 Year 5.3% 10 Year 15 Year Since launch 11.5% Historical performance (Yearly) on absolute basis
Year Returns 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% 2010 18% Fund Manager information for Franklin India Index Fund Nifty Plan
Name Since Tenure Varun Sharma 30 Nov 15 4.59 Yr. Pyari Menon 26 Sep 19 0.76 Yr. Data below for Franklin India Index Fund Nifty Plan as on 30 Jun 20
Asset Allocation
Asset Class Value Equity 98.29% Other 1.71% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE13% ₹40 Cr 232,089 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | HDFCBANK11% ₹33 Cr 312,361 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Apr 09 | HDFC7% ₹22 Cr 124,707 Infosys Ltd (Technology)
Equity, Since 29 Feb 12 | INFY6% ₹19 Cr 261,755 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | ICICIBANK5% ₹16 Cr 463,690 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS5% ₹15 Cr 73,949 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | KOTAKBANK4% ₹13 Cr 96,385 ITC Ltd (Consumer Defensive)
Equity, Since 31 Mar 11 | ITC4% ₹12 Cr 618,573 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | 5006963% ₹11 Cr 49,728 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 04 | BHARTIARTL3% ₹9 Cr 161,250 6. SBI Nifty Index Fund
CAGR/Annualized return of 13.1% since its launch. Ranked 75 in Index Fund category. Return for 2019 was 12.5% , 2018 was 3.8% and 2017 was 29.1% . SBI Nifty Index Fund
Growth Launch Date 17 Jan 02 NAV (05 Aug 20) ₹95.1332 ↑ 0.08 (0.08 %) Net Assets (Cr) ₹907 on 30 Jun 20 Category Others - Index Fund AMC SBI Funds Management Private Limited Rating ☆ Risk Moderately High Expense Ratio 0.69 Sharpe Ratio -0.36 Information Ratio -4.7 Alpha Ratio -1.27 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 Jul 15 ₹10,000 31 Jul 16 ₹10,155 31 Jul 17 ₹11,885 31 Jul 18 ₹13,463 31 Jul 19 ₹13,244 31 Jul 20 ₹13,143 Returns for SBI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 20 Duration Returns 1 Month 4.8% 3 Month 20.8% 6 Month -8.4% 1 Year 1.8% 3 Year 3.5% 5 Year 5.6% 10 Year 15 Year Since launch 13.1% Historical performance (Yearly) on absolute basis
Year Returns 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% 2010 18% Fund Manager information for SBI Nifty Index Fund
Name Since Tenure Raviprakash Sharma 1 Feb 11 9.42 Yr. Data below for SBI Nifty Index Fund as on 30 Jun 20
Asset Allocation
Asset Class Value Cash 1.85% Equity 98.15% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE12% ₹111 Cr 650,223
↑ 2,089 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 03 | HDFCBANK10% ₹95 Cr 889,111
↑ 20,929 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 May 03 | HDFC7% ₹62 Cr 354,813
↑ 8,205 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY6% ₹55 Cr 751,389
↑ 17,131 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK5% ₹47 Cr 1,328,400
↑ 30,867 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS5% ₹45 Cr 215,533
↑ 4,904 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | KOTAKBANK5% ₹41 Cr 300,398
↑ 32,020 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | 5006964% ₹40 Cr 183,168
↑ 39,952 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC4% ₹35 Cr 1,790,343
↑ 40,724 Bharti Airtel Ltd (Communication Services)
Equity, Since 29 Feb 04 | BHARTIARTL3% ₹28 Cr 492,438
↑ 44,027 7. IDBI Nifty Index Fund
CAGR/Annualized return of 7.3% since its launch. Ranked 83 in Index Fund category. Return for 2019 was 12.3% , 2018 was 2.8% and 2017 was 27.4% . IDBI Nifty Index Fund
Growth Launch Date 25 Jun 10 NAV (05 Aug 20) ₹20.4568 ↑ 0.02 (0.08 %) Net Assets (Cr) ₹196 on 30 Jun 20 Category Others - Index Fund AMC IDBI Asset Management Limited Rating ☆ Risk Moderately High Expense Ratio 1.38 Sharpe Ratio -0.36 Information Ratio -8.2 Alpha Ratio -1.25 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Jul 15 ₹10,000 31 Jul 16 ₹10,065 31 Jul 17 ₹11,652 31 Jul 18 ₹13,015 31 Jul 19 ₹12,767 31 Jul 20 ₹12,686 Returns for IDBI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 20 Duration Returns 1 Month 4.7% 3 Month 20.6% 6 Month -8.2% 1 Year 1.9% 3 Year 3% 5 Year 4.8% 10 Year 15 Year Since launch 7.3% Historical performance (Yearly) on absolute basis
Year Returns 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% 2010 Fund Manager information for IDBI Nifty Index Fund
Name Since Tenure Firdaus Ragina 9 Oct 18 1.73 Yr. Data below for IDBI Nifty Index Fund as on 30 Jun 20
Asset Allocation
Asset Class Value Cash 0.4% Equity 99.6% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 11 | RELIANCE12% ₹24 Cr 142,357
↓ -4,131 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | HDFCBANK11% ₹21 Cr 194,558
↓ -1,653 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Apr 11 | HDFC7% ₹14 Cr 77,675
↓ -644 Infosys Ltd (Technology)
Equity, Since 30 Apr 11 | INFY6% ₹12 Cr 164,490
↓ -1,411 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | ICICIBANK5% ₹10 Cr 290,817
↓ -2,367 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 11 | TCS5% ₹10 Cr 47,181
↓ -412 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | KOTAKBANK5% ₹9 Cr 65,757
↑ 5,109 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Apr 11 | 5006964% ₹9 Cr 40,086
↑ 7,721 ITC Ltd (Consumer Defensive)
Equity, Since 30 Apr 11 | ITC4% ₹8 Cr 392,013
↓ -3,343 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Apr 11 | BHARTIARTL3% ₹6 Cr 107,778
↑ 6,425 8. Nippon India Index Fund - Nifty Plan
CAGR/Annualized return of 6.5% since its launch. Ranked 78 in Index Fund category. Return for 2019 was 12.3% , 2018 was 3.5% and 2017 was 29% . Nippon India Index Fund - Nifty Plan
Growth Launch Date 28 Sep 10 NAV (05 Aug 20) ₹18.5211 ↑ 0.01 (0.08 %) Net Assets (Cr) ₹212 on 30 Jun 20 Category Others - Index Fund AMC Nippon Life Asset Management Ltd. Rating ☆ Risk Moderately High Expense Ratio 0.97 Sharpe Ratio -0.37 Information Ratio -4.32 Alpha Ratio -1.61 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 Jul 15 ₹10,000 31 Jul 16 ₹10,142 31 Jul 17 ₹11,784 31 Jul 18 ₹13,303 31 Jul 19 ₹13,051 31 Jul 20 ₹12,947 Returns for Nippon India Index Fund - Nifty Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 20 Duration Returns 1 Month 4.7% 3 Month 20.5% 6 Month -8.4% 1 Year 1.7% 3 Year 3.3% 5 Year 5.3% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 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% 2010 Fund Manager information for Nippon India Index Fund - Nifty Plan
Name Since Tenure Mehul Dama 6 Nov 18 1.65 Yr. Data below for Nippon India Index Fund - Nifty Plan as on 30 Jun 20
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 | RELIANCE12% ₹26 Cr 154,846
↓ -34,536 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | HDFCBANK11% ₹23 Cr 211,734
↓ -41,946 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Oct 10 | HDFC7% ₹15 Cr 84,495
↓ -16,783 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY6% ₹13 Cr 178,936
↓ -35,612 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | ICICIBANK5% ₹11 Cr 316,347
↓ -62,788 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Oct 10 | TCS5% ₹11 Cr 51,327
↓ -10,218 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Aug 11 | KOTAKBANK5% ₹10 Cr 71,535
↓ -6,884 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Oct 10 | 5006964% ₹10 Cr 43,616
↑ 1,769 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC4% ₹8 Cr 426,354
↓ -84,879 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 10 | BHARTIARTL3% ₹7 Cr 117,266
↓ -13,759 9. LIC MF Index Fund Nifty
CAGR/Annualized return of 11.4% since its launch. Ranked 80 in Index Fund category. Return for 2019 was 12.6% , 2018 was 2.6% and 2017 was 28.6% . LIC MF Index Fund Nifty
Growth Launch Date 14 Nov 02 NAV (05 Aug 20) ₹61.3 ↑ 0.04 (0.07 %) Net Assets (Cr) ₹24 on 30 Jun 20 Category Others - Index Fund AMC LIC Mutual Fund Asset Mgmt Co Ltd Rating ☆ Risk Moderately High Expense Ratio 1.23 Sharpe Ratio -0.34 Information Ratio -4.12 Alpha Ratio -0.83 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 Jul 15 ₹10,000 31 Jul 16 ₹10,102 31 Jul 17 ₹11,750 31 Jul 18 ₹13,152 31 Jul 19 ₹12,893 31 Jul 20 ₹12,865 Returns for LIC MF Index Fund Nifty
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 20 Duration Returns 1 Month 4.7% 3 Month 20.5% 6 Month -8.2% 1 Year 2.3% 3 Year 3.2% 5 Year 5.1% 10 Year 15 Year Since launch 11.4% Historical performance (Yearly) on absolute basis
Year Returns 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% 2010 18.2% Fund Manager information for LIC MF Index Fund Nifty
Name Since Tenure Ritu Modi 1 Nov 19 0.66 Yr. Data below for LIC MF Index Fund Nifty as on 30 Jun 20
Asset Allocation
Asset Class Value Cash 1.68% Equity 98.32% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 12 | RELIANCE12% ₹3 Cr 17,296
↓ -772 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 09 | HDFCBANK11% ₹3 Cr 23,666
↓ -559 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Jan 03 | HDFC7% ₹2 Cr 9,445
↓ -224 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY6% ₹1 Cr 19,995
↓ -479 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 09 | ICICIBANK5% ₹1 Cr 35,373
↓ -754 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 05 | TCS5% ₹1 Cr 5,738
↓ -125 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Apr 10 | KOTAKBANK5% ₹1 Cr 7,939
↑ 457 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Oct 11 | 5006964% ₹1 Cr 4,356
↑ 377 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | ITC4% ₹1 Cr 47,352
↓ -1,242 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Apr 09 | BHARTIARTL3% ₹1 Cr 12,985
↑ 399
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 of investing in index funds 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
Index funds 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!
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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