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Best Index Mutual Funds for Investments 2018 - 2019
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:
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.
Less Expenses as Compared to other Funds
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.
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.
Top 5 Best Performing Index Funds 2018 - 2019
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2017 (%) ICICI Prudential Nifty Index Fund Growth ₹102.625
↓ -1.03 ₹339 -7.8 0.9 3.6 11 12.2 28.7 UTI Nifty Index Fund Growth ₹69.1838
↓ -0.69 ₹975 -7.6 1.4 4.5 11.7 12.6 29.7 Franklin India Index Fund Nifty Plan Growth ₹84.344
↓ -0.85 ₹237 -7.8 0.9 3.4 10.6 11.8 28.3 SBI Nifty Index Fund Growth ₹91.2761
↓ -0.92 ₹317 -7.7 1.2 4.1 11.2 11.8 29.1 IDBI Nifty Index Fund Growth ₹19.6302
↓ -0.20 ₹211 -7.8 0.8 3 9.9 11.1 27.4 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 20 Nov 18
(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 1. ICICI Prudential Nifty Index Fund
CAGR/Annualized return of 14.9% since its launch. Ranked 71 in Index Fund category. Return for 2017 was 28.7% , 2016 was 3.6% and 2015 was -3.6% . ICICI Prudential Nifty Index Fund
Growth Launch Date 26 Feb 02 NAV (20 Nov 18) ₹102.625 ↓ -1.03 (-0.99 %) Net Assets (Cr) ₹339 on 31 Oct 18 Category Others - Index Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆ Risk Moderately High Expense Ratio 1 Sharpe Ratio -0.11 Information Ratio 0.74 Alpha Ratio 0.16 Min Investment 5,000 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Oct 13 ₹10,000 31 Oct 14 ₹13,305 31 Oct 15 ₹12,960 31 Oct 16 ₹13,934 31 Oct 17 ₹16,704 31 Oct 18 ₹16,819 Returns for ICICI Prudential Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Nov 18 Duration Returns 1 Month 3.4% 3 Month -7.8% 6 Month 0.9% 1 Year 3.6% 3 Year 11% 5 Year 12.2% 10 Year 15 Year Since launch 14.9% Historical performance (Yearly) on absolute basis
Year Returns 2017 28.7% 2016 3.6% 2015 -3.6% 2014 32.5% 2013 7.9% 2012 26.5% 2011 -23.6% 2010 18.7% 2009 75.6% 2008 -50.4% Fund Manager information for ICICI Prudential Nifty Index Fund
Name Since Tenure Kayzad Eghlim 1 Aug 09 9.26 Yr. Data below for ICICI Prudential Nifty Index Fund as on 31 Oct 18
Asset Allocation
Asset Class Value Cash 0.43% Equity 99.57% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | HDFCBANK10% ₹33 Cr 174,864
↑ 4,372 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 05 | RELIANCE9% ₹30 Cr 280,075
↑ 8,892 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 12 | HDFC7% ₹23 Cr 130,837
↑ 4,224 Infosys Ltd (Technology)
Equity, Since 31 Mar 05 | INFY6% ₹21 Cr 312,524
↑ 9,875 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC6% ₹20 Cr 697,170
↑ 22,246 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | ICICIBANK5% ₹18 Cr 518,859
↑ 16,717 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 05 | 5325405% ₹17 Cr 89,184
↑ 2,786 Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | LT4% ₹13 Cr 99,354
↑ 3,204 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 29 Feb 12 | KOTAKBANK4% ₹12 Cr 107,509
↑ 3,469 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Mar 05 | 5006963% ₹10 Cr 58,820
↑ 1,855 2. UTI Nifty Index Fund
CAGR/Annualized return of 10.9% since its launch. Ranked 68 in Index Fund category. Return for 2017 was 29.7% , 2016 was 4% and 2015 was -3.3% . UTI Nifty Index Fund
Growth Launch Date 6 Mar 00 NAV (20 Nov 18) ₹69.1838 ↓ -0.69 (-0.99 %) Net Assets (Cr) ₹975 on 31 Oct 18 Category Others - Index Fund AMC UTI Asset Management Company Ltd Rating ☆☆ Risk Moderately High Expense Ratio 0.2 Sharpe Ratio -0.05 Information Ratio 2.59 Alpha Ratio 1.02 Min Investment 5,000 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Oct 13 ₹10,000 31 Oct 14 ₹13,261 31 Oct 15 ₹12,942 31 Oct 16 ₹13,990 31 Oct 17 ₹16,874 31 Oct 18 ₹17,137 Returns for UTI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Nov 18 Duration Returns 1 Month 3.5% 3 Month -7.6% 6 Month 1.4% 1 Year 4.5% 3 Year 11.7% 5 Year 12.6% 10 Year 15 Year Since launch 10.9% Historical performance (Yearly) on absolute basis
Year Returns 2017 29.7% 2016 4% 2015 -3.3% 2014 31.8% 2013 6.9% 2012 28.3% 2011 -24.8% 2010 17.7% 2009 73.8% 2008 -52% Fund Manager information for UTI Nifty Index Fund
Name Since Tenure Kaushik Basu 1 Jul 11 7.34 Yr. Sharwan Kumar Goyal 2 Jul 18 0.33 Yr. Data below for UTI Nifty Index Fund as on 31 Oct 18
Asset Allocation
Asset Class Value Cash 0.13% Equity 99.87% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | HDFCBANK10% ₹97 Cr 504,818
↑ 37,701 Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE9% ₹85 Cr 805,565
↑ 60,121 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 12 | HDFC7% ₹68 Cr 382,620
↑ 28,561 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY6% ₹61 Cr 894,445
↑ 66,734 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | ITC6% ₹56 Cr 2,015,064
↑ 150,356 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK6% ₹54 Cr 1,514,084
↑ 112,783 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | 5325405% ₹49 Cr 252,294
↑ 18,822 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Dec 04 | LT4% ₹38 Cr 290,301
↑ 21,602 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Dec 10 | KOTAKBANK4% ₹35 Cr 314,068
↑ 23,369 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | 5006963% ₹27 Cr 168,085
↑ 12,510 3. Franklin India Index Fund Nifty Plan
CAGR/Annualized return of 12.4% since its launch. Ranked 76 in Index Fund category. Return for 2017 was 28.3% , 2016 was 3.3% and 2015 was -3.6% . Franklin India Index Fund Nifty Plan
Growth Launch Date 4 Aug 00 NAV (20 Nov 18) ₹84.344 ↓ -0.85 (-1.00 %) Net Assets (Cr) ₹237 on 31 Oct 18 Category Others - Index Fund AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆ Risk Moderately High Expense Ratio 1.07 Sharpe Ratio -0.12 Information Ratio 0.08 Alpha Ratio 0.04 Min Investment 5,000 Exit Load 0-30 Days (1%),30 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Oct 13 ₹10,000 31 Oct 14 ₹13,195 31 Oct 15 ₹12,852 31 Oct 16 ₹13,787 31 Oct 17 ₹16,465 31 Oct 18 ₹16,565 Returns for Franklin India Index Fund Nifty Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Nov 18 Duration Returns 1 Month 3.3% 3 Month -7.8% 6 Month 0.9% 1 Year 3.4% 3 Year 10.6% 5 Year 11.8% 10 Year 15 Year Since launch 12.4% Historical performance (Yearly) on absolute basis
Year Returns 2017 28.3% 2016 3.3% 2015 -3.6% 2014 31.2% 2013 6.9% 2012 27.7% 2011 -24.4% 2010 18% 2009 75.3% 2008 -52.1% Fund Manager information for Franklin India Index Fund Nifty Plan
Name Since Tenure Varun Sharma 30 Nov 15 2.92 Yr. Srikesh Nair 1 Dec 15 2.92 Yr. Data below for Franklin India Index Fund Nifty Plan as on 31 Oct 18
Asset Allocation
Asset Class Value Equity 98.72% Other 1.28% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | HDFCBANK10% ₹23 Cr 121,075
↑ 1,789 Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE9% ₹21 Cr 193,217
↑ 2,855 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Apr 09 | HDFC7% ₹16 Cr 91,770
↑ 1,355 Infosys Ltd (Technology)
Equity, Since 29 Feb 12 | INFY6% ₹15 Cr 214,539
↑ 3,169 ITC Ltd (Consumer Defensive)
Equity, Since 31 Mar 11 | ITC6% ₹14 Cr 483,325
↑ 7,139 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | ICICIBANK5% ₹13 Cr 363,218
↑ 5,371 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | 5325405% ₹12 Cr 60,516
↑ 895 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Jun 12 | LT4% ₹9 Cr 69,645
↑ 1,028 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | KOTAKBANK4% ₹8 Cr 75,348
↑ 1,113 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | 5006963% ₹7 Cr 40,324
↑ 596 4. SBI Nifty Index Fund
CAGR/Annualized return of 14.3% since its launch. Ranked 75 in Index Fund category. Return for 2017 was 29.1% , 2016 was 3.4% and 2015 was -4.2% . SBI Nifty Index Fund
Growth Launch Date 17 Jan 02 NAV (20 Nov 18) ₹91.2761 ↓ -0.92 (-0.99 %) Net Assets (Cr) ₹317 on 31 Oct 18 Category Others - Index Fund AMC SBI Funds Management Private Limited Rating ☆ Risk Moderately High Expense Ratio 0.69 Sharpe Ratio -0.08 Information Ratio 1.2 Alpha Ratio 0.62 Min Investment 5,000 Exit Load 0-15 Days (0.2%),15 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Oct 13 ₹10,000 31 Oct 14 ₹13,133 31 Oct 15 ₹12,692 31 Oct 16 ₹13,638 31 Oct 17 ₹16,369 31 Oct 18 ₹16,553 Returns for SBI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Nov 18 Duration Returns 1 Month 3.5% 3 Month -7.7% 6 Month 1.2% 1 Year 4.1% 3 Year 11.2% 5 Year 11.8% 10 Year 15 Year Since launch 14.3% Historical performance (Yearly) on absolute basis
Year Returns 2017 29.1% 2016 3.4% 2015 -4.2% 2014 30.5% 2013 6.2% 2012 28.4% 2011 -24.6% 2010 18% 2009 74.7% 2008 -53.3% Fund Manager information for SBI Nifty Index Fund
Name Since Tenure Raviprakash Sharma 1 Feb 11 7.75 Yr. Data below for SBI Nifty Index Fund as on 31 Oct 18
Asset Allocation
Asset Class Value Cash 2.26% Equity 97.74% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 03 | HDFCBANK10% ₹31 Cr 160,467
↑ 12,294 Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE9% ₹27 Cr 256,110
↑ 19,623 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 May 03 | HDFC7% ₹22 Cr 121,634
↑ 9,318 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY6% ₹20 Cr 284,361
↑ 21,787 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC6% ₹18 Cr 640,624
↑ 49,084 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK5% ₹17 Cr 481,418
↑ 36,885 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | 5325405% ₹16 Cr 80,205
↑ 6,141 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Dec 04 | LT4% ₹12 Cr 92,310
↑ 7,071 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | KOTAKBANK4% ₹11 Cr 99,868
↑ 7,651 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | 5006963% ₹9 Cr 53,445
↑ 4,093 5. IDBI Nifty Index Fund
CAGR/Annualized return of 8.4% since its launch. Ranked 83 in Index Fund category. Return for 2017 was 27.4% , 2016 was 2.4% and 2015 was -4.4% . IDBI Nifty Index Fund
Growth Launch Date 25 Jun 10 NAV (20 Nov 18) ₹19.6302 ↓ -0.20 (-1.00 %) Net Assets (Cr) ₹211 on 31 Oct 18 Category Others - Index Fund AMC IDBI Asset Management Limited Rating ☆ Risk Moderately High Expense Ratio 1.94 Sharpe Ratio -0.15 Information Ratio -1.9 Alpha Ratio -0.54 Min Investment 5,000 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Oct 13 ₹10,000 31 Oct 14 ₹13,173 31 Oct 15 ₹12,707 31 Oct 16 ₹13,521 31 Oct 17 ₹16,020 31 Oct 18 ₹16,020 Returns for IDBI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Nov 18 Duration Returns 1 Month 3.5% 3 Month -7.8% 6 Month 0.8% 1 Year 3% 3 Year 9.9% 5 Year 11.1% 10 Year 15 Year Since launch 8.4% Historical performance (Yearly) on absolute basis
Year Returns 2017 27.4% 2016 2.4% 2015 -4.4% 2014 30.8% 2013 7.2% 2012 27.7% 2011 -24.9% 2010 2009 2008 Fund Manager information for IDBI Nifty Index Fund
Name Since Tenure Firdaus Ragina 9 Oct 18 0.06 Yr. Data below for IDBI Nifty Index Fund as on 31 Oct 18
Asset Allocation
Asset Class Value Cash 0.1% Equity 99.9% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | HDFCBANK10% ₹21 Cr 109,098
↑ 8,501 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 11 | RELIANCE9% ₹19 Cr 174,406
↑ 7,718 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Apr 11 | HDFC7% ₹15 Cr 82,743
↑ 4,277 Infosys Ltd (Technology)
Equity, Since 30 Apr 11 | INFY6% ₹13 Cr 193,932
↑ 8,567 ITC Ltd (Consumer Defensive)
Equity, Since 30 Apr 11 | ITC6% ₹12 Cr 434,648
↑ 19,302 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | ICICIBANK6% ₹12 Cr 328,472
↑ 14,506 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 11 | 5325405% ₹11 Cr 54,420
↑ 2,416 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Apr 11 | LT4% ₹8 Cr 62,746
↑ 2,782 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | KOTAKBANK4% ₹8 Cr 68,044
↑ 3,010 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Apr 11 | 5006963% ₹6 Cr 36,439
↑ 1,611
Since, index funds are passively managed, they tend to have a lower expense ratio than those of actively managed funds. For instance, the average expense ratio of actively-managed funds is 2-2.5 percent, while for index funds it is 1-1.5 percent.
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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