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Nifty Index Funds: The Complete Guide for Indian Investors

Updated on October 15, 2026 , 220669 views

For decades, Indian investors have debated whether actively managed funds or passive funds generate better long-term wealth. In recent years, index Investing has gained momentum in India, especially with the growing popularity of Nifty Index Funds.

nifty-index

These funds track the performance of the Nifty 50 index, which represents 50 of the largest and most liquid companies listed on the National Stock Exchange (NSE). For investors seeking diversification, low costs, and market-level returns, Nifty Index Funds have become a cornerstone of modern portfolios. But before you start investing, it’s important to understand how these funds work, their benefits, limitations, and how to select the right one.

What is a Nifty Index Fund?

A Nifty Index Fund is a type of mutual fund that passively tracks the Nifty 50 index. Instead of trying to outperform the market, it simply mirrors the index by holding the same stocks in the same proportion.

For example:

  • If Reliance Industries has a 10% weight in the Nifty 50, the fund will allocate about 10% of its assets to Reliance.

  • Similarly, HDFC Bank, Infosys, TCS, and other top companies get included in the same weightage.

This ensures that when the Nifty rises or falls, your fund’s performance closely reflects the same movement.

Why Nifty Index Funds Matter for Investors

1. Diversification Across Sectors

The Nifty 50 represents companies across 13+ sectors, including banking, IT, energy, FMCG, and pharma. By investing in one index fund, you automatically diversify across the backbone of India’s economy.

2. Low-Cost Advantage

Unlike actively managed Mutual Funds, index funds don’t require expensive research teams. This translates into lower expense ratios, often in the range of 0.1% to 0.3% — saving investors significant costs over the long term.

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3. Consistent Market Returns

Over long periods, most active funds struggle to consistently beat the index. With an index fund, you are guaranteed market-matching returns (minus small costs).

4. A Beginner-Friendly Option

For new investors, Nifty Index Funds are a simple starting point. Instead of selecting among hundreds of mutual funds, one index fund offers a ready-made, balanced Portfolio.

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Fund Selection Methodology used to find 10 funds

  • AUM Range: 10 to 50000 Cr
  • Keyword: “nifty”
  • Tags: nifty
  • No Of Funds: 10
  • Funds Suggested Criteria Is Selected Based on Long Terms Returns and Higher Risk & Assets Under Management (AUM) Is High.

Top 10 Best Performing Nifty Index Funds 2026

All the funds mentioned above are ideal, we are giving you detailed analysis of 5 funds.

1. ICICI Prudential Nifty Index Fund

(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.

Research Highlights for ICICI Prudential Nifty Index Fund

  • Upper mid AUM (₹17,254 Cr).
  • Established history (24+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 5.55% (upper mid).
  • 3Y return: 6.26% (upper mid).
  • 1Y return: -8.91% (upper mid).
  • 1M return: -0.33% (bottom quartile).
  • Alpha: -0.42 (upper mid).
  • Sharpe: -0.32 (upper mid).
  • Information ratio: -9.28 (upper mid).
  • Top sector: Financial Services.
  • Top bond sector: Cash Equivalent.
  • Equity-heavy allocation (~100%).
  • Largest holding HDFC Bank Ltd (~9.8%).

Below is the key information for ICICI Prudential Nifty Index Fund

ICICI Prudential Nifty Index Fund
Growth
Launch Date 26 Feb 02
NAV (16 Oct 26) ₹234.616 ↑ 1.53   (0.66 %)
Net Assets (Cr) ₹17,254 on 31 Aug 26
Category Others - Index Fund
AMC ICICI Prudential Asset Management Company Limited
Rating ☆☆
Risk Moderately High
Expense Ratio 0.36
Sharpe Ratio -0.32
Information Ratio -9.28
Alpha Ratio -0.42
Min Investment 5,000
Min SIP Investment 100
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
30 Sep 21₹10,000
30 Sep 22₹9,790
30 Sep 23₹11,312
30 Sep 24₹14,976
30 Sep 25₹14,399
30 Sep 26₹13,323

ICICI Prudential Nifty Index Fund SIP Returns

   
My Monthly Investment:
₹
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120
Invest Now

Returns for ICICI Prudential Nifty Index Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Oct 26

DurationReturns
1 Month -0.3%
3 Month -3.7%
6 Month -3.7%
1 Year -8.9%
3 Year 6.3%
5 Year 5.5%
10 Year
15 Year
Since launch 13.7%
Historical performance (Yearly) on absolute basis
YearReturns
2025 11.4%
2024 9.6%
2023 20.7%
2022 5.2%
2021 24.9%
2020 15.2%
2019 12.8%
2018 3.4%
2017 28.7%
2016 3.6%
Fund Manager information for ICICI Prudential Nifty Index Fund
NameSinceTenure
Nishit Patel18 Jan 215.62 Yr.
Ajaykumar Solanki1 Feb 242.58 Yr.
Ashwini Bharucha18 Dec 241.7 Yr.
Venus Ahuja1 Nov 250.83 Yr.

Data below for ICICI Prudential Nifty Index Fund as on 31 Aug 26

Asset Allocation
Asset ClassValue
Cash0.04%
Equity99.96%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | HDFCBANK
10%₹1,699 Cr23,965,268
↑ 230,065
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | ICICIBANK
9%₹1,630 Cr11,211,199
↑ 107,629
Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 05 | RELIANCE
8%₹1,350 Cr10,572,602
↑ 101,499
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Aug 09 | BHARTIARTL
5%₹862 Cr4,758,963
↑ 45,693
Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | LT
4%₹741 Cr1,831,740
↑ 17,593
State Bank of India (Financial Services)
Equity, Since 31 Mar 05 | SBIN
4%₹686 Cr6,468,862
↑ 62,103
Infosys Ltd (Technology)
Equity, Since 31 Mar 05 | INFY
4%₹622 Cr5,489,256
↑ 52,703
Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | 532215
3%₹584 Cr4,494,554
↑ 43,154
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 29 Feb 12 | KOTAKBANK
3%₹483 Cr11,522,374
↑ 110,616
Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Mar 05 | M&M
3%₹459 Cr1,397,202
↑ 13,420

2. UTI Nifty Index Fund

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.

Research Highlights for UTI Nifty Index Fund

  • Highest AUM (₹29,485 Cr).
  • Oldest track record among peers (26 yrs).
  • Rating: 2★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 5.66% (top quartile).
  • 3Y return: 6.35% (top quartile).
  • 1Y return: -8.81% (top quartile).
  • 1M return: -0.31% (upper mid).
  • Alpha: -0.30 (top quartile).
  • Sharpe: -0.31 (top quartile).
  • Information ratio: -10.59 (lower mid).
  • Top sector: Financial Services.
  • Top bond sector: Government.
  • Equity-heavy allocation (~100%).
  • Largest holding HDFC Bank Ltd (~9.9%).

Below is the key information for UTI Nifty Index Fund

UTI Nifty Index Fund
Growth
Launch Date 6 Mar 00
NAV (16 Oct 26) ₹160.516 ↑ 1.05   (0.66 %)
Net Assets (Cr) ₹29,485 on 31 Aug 26
Category Others - Index Fund
AMC UTI Asset Management Company Ltd
Rating ☆☆
Risk Moderately High
Expense Ratio 0.29
Sharpe Ratio -0.31
Information Ratio -10.59
Alpha Ratio -0.3
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
30 Sep 21₹10,000
30 Sep 22₹9,803
30 Sep 23₹11,342
30 Sep 24₹15,017
30 Sep 25₹14,457
30 Sep 26₹13,393

UTI Nifty Index Fund SIP Returns

   
My Monthly Investment:
₹
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120
Invest Now

Returns for UTI Nifty Index Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Oct 26

DurationReturns
1 Month -0.3%
3 Month -3.7%
6 Month -3.7%
1 Year -8.8%
3 Year 6.4%
5 Year 5.7%
10 Year
15 Year
Since launch 11%
Historical performance (Yearly) on absolute basis
YearReturns
2025 11.6%
2024 9.6%
2023 20.9%
2022 5.3%
2021 25.2%
2020 15.5%
2019 13.2%
2018 4.3%
2017 29.7%
2016 4%
Fund Manager information for UTI Nifty Index Fund
NameSinceTenure
Sharwan Goyal31 Jul 188.09 Yr.
Ayush Jain2 May 224.34 Yr.
Lokesh Kulthia19 Jun 260.2 Yr.

Data below for UTI Nifty Index Fund as on 31 Aug 26

Asset Allocation
Asset ClassValue
Equity100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | HDFCBANK
10%₹2,905 Cr40,975,419
↑ 466,798
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK
9%₹2,787 Cr19,168,725
↑ 218,374
Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE
8%₹2,308 Cr18,076,860
↑ 205,934
Bharti Airtel Ltd (Communication Services)
Equity, Since 29 Feb 04 | BHARTIARTL
5%₹1,474 Cr8,136,797
↑ 92,696
Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Dec 04 | LT
4%₹1,267 Cr3,131,881
↑ 35,679
State Bank of India (Financial Services)
Equity, Since 31 Jan 03 | SBIN
4%₹1,172 Cr11,060,356
↑ 126,001
Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY
4%₹1,064 Cr9,385,439
↑ 106,920
Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | 532215
3%₹999 Cr7,684,715
↑ 87,546
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Dec 10 | KOTAKBANK
3%₹826 Cr19,700,767
↑ 224,434
Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Jan 03 | M&M
3%₹784 Cr2,388,915
↑ 27,215

3. Franklin India Index Fund Nifty Plan

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

Research Highlights for Franklin India Index Fund Nifty Plan

  • Bottom quartile AUM (₹715 Cr).
  • Established history (26+ yrs).
  • Rating: 1★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 5.33% (bottom quartile).
  • 3Y return: 6.08% (bottom quartile).
  • 1Y return: -9.02% (bottom quartile).
  • 1M return: -0.30% (top quartile).
  • Alpha: -0.60 (bottom quartile).
  • Sharpe: -0.33 (bottom quartile).
  • Information ratio: -5.23 (top quartile).
  • Top sector: Financial Services.
  • Top bond sector: Cash Equivalent.
  • Equity-heavy allocation (~100%).
  • Largest holding HDFC Bank Ltd (~9.8%).

Below is the key information for Franklin India Index Fund Nifty Plan

Franklin India Index Fund Nifty Plan
Growth
Launch Date 4 Aug 00
NAV (16 Oct 26) ₹187.798 ↑ 1.22   (0.65 %)
Net Assets (Cr) ₹715 on 31 Aug 26
Category Others - Index Fund
AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating ☆
Risk Moderately High
Expense Ratio 0.63
Sharpe Ratio -0.33
Information Ratio -5.23
Alpha Ratio -0.6
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.

DateValue
30 Sep 21₹10,000
30 Sep 22₹9,772
30 Sep 23₹11,253
30 Sep 24₹14,859
30 Sep 25₹14,265
30 Sep 26₹13,186

Franklin India Index Fund Nifty Plan SIP Returns

   
My Monthly Investment:
₹
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120
Invest Now

Returns for Franklin India Index Fund Nifty Plan

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Oct 26

DurationReturns
1 Month -0.3%
3 Month -3.7%
6 Month -3.8%
1 Year -9%
3 Year 6.1%
5 Year 5.3%
10 Year
15 Year
Since launch 11.8%
Historical performance (Yearly) on absolute basis
YearReturns
2025 11.3%
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%
Fund Manager information for Franklin India Index Fund Nifty Plan
NameSinceTenure
Sandeep Manam18 Oct 214.87 Yr.
Shyam Sriram26 Sep 241.93 Yr.

Data below for Franklin India Index Fund Nifty Plan as on 31 Aug 26

Asset Allocation
Asset ClassValue
Cash0.31%
Equity99.69%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | HDFCBANK
10%₹70 Cr990,850
↓ -8,577
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | ICICIBANK
9%₹67 Cr463,530
↓ -4,012
Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE
8%₹56 Cr437,127
↓ -3,784
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 04 | BHARTIARTL
5%₹36 Cr196,760
↓ -1,704
Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Jun 12 | LT
4%₹31 Cr75,734
↓ -655
State Bank of India (Financial Services)
Equity, Since 31 Jan 03 | SBIN
4%₹28 Cr267,457
↓ -2,315
Infosys Ltd (Technology)
Equity, Since 29 Feb 12 | INFY
4%₹26 Cr226,955
↓ -1,964
Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 09 | 532215
3%₹24 Cr185,828
↓ -1,609
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | KOTAKBANK
3%₹20 Cr476,395
↓ -4,124
Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 28 Feb 07 | M&M
3%₹19 Cr57,768
↓ -500

4. SBI Nifty Index Fund

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.

Research Highlights for SBI Nifty Index Fund

  • Lower mid AUM (₹13,928 Cr).
  • Established history (24+ yrs).
  • Rating: 1★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 5.46% (lower mid).
  • 3Y return: 6.17% (lower mid).
  • 1Y return: -8.95% (lower mid).
  • 1M return: -0.32% (lower mid).
  • Alpha: -0.48 (lower mid).
  • Sharpe: -0.32 (lower mid).
  • Information ratio: -26.98 (bottom quartile).
  • Top sector: Financial Services.
  • Equity-heavy allocation (~100%).
  • Largest holding HDFC Bank Ltd (~9.9%).

Below is the key information for SBI Nifty Index Fund

SBI Nifty Index Fund
Growth
Launch Date 17 Jan 02
NAV (16 Oct 26) ₹205.964 ↑ 1.35   (0.66 %)
Net Assets (Cr) ₹13,928 on 31 Aug 26
Category Others - Index Fund
AMC SBI Funds Management Private Limited
Rating ☆
Risk Moderately High
Expense Ratio 0.47
Sharpe Ratio -0.32
Information Ratio -26.98
Alpha Ratio -0.48
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-15 Days (0.2%),15 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
30 Sep 21₹10,000
30 Sep 22₹9,779
30 Sep 23₹11,291
30 Sep 24₹14,931
30 Sep 25₹14,344
30 Sep 26₹13,266

SBI Nifty Index Fund SIP Returns

   
My Monthly Investment:
₹
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120
Invest Now

Returns for SBI Nifty Index Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Oct 26

DurationReturns
1 Month -0.3%
3 Month -3.7%
6 Month -3.7%
1 Year -9%
3 Year 6.2%
5 Year 5.5%
10 Year
15 Year
Since launch 13.2%
Historical performance (Yearly) on absolute basis
YearReturns
2025 11.3%
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%
Fund Manager information for SBI Nifty Index Fund
NameSinceTenure
Viral Chhadva1 Mar 260.5 Yr.

Data below for SBI Nifty Index Fund as on 31 Aug 26

Asset Allocation
Asset ClassValue
Equity100.04%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 03 | HDFCBANK
10%₹1,372 Cr19,357,662
↑ 66,631
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK
9%₹1,317 Cr9,055,715
↑ 31,171
Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE
8%₹1,091 Cr8,539,895
↑ 29,397
Bharti Airtel Ltd (Communication Services)
Equity, Since 29 Feb 04 | BHARTIARTL
5%₹696 Cr3,843,997
↑ 13,232
Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Dec 04 | LT
4%₹598 Cr1,479,567
↑ 5,093
State Bank of India (Financial Services)
Equity, Since 31 Jan 03 | SBIN
4%₹554 Cr5,225,148
↑ 17,985
Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY
4%₹503 Cr4,433,881
↑ 15,261
Axis Bank Ltd (Financial Services)
Equity, Since 28 Feb 10 | 532215
3%₹472 Cr3,630,420
↑ 12,495
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | KOTAKBANK
3%₹390 Cr9,307,060
↑ 32,035
Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 30 Jun 10 | M&M
3%₹370 Cr1,128,575
↑ 3,885

5. Bandhan Nifty Fund

The investment objective of the scheme is to replicate the Nifty 50 by investing in securities of the Nifty 50 in the same proportion / weightage. However, there is no assurance or guarantee that the objectives of the scheme will be realized and the scheme does not assure or guarantee any returns .

Research Highlights for Bandhan Nifty Fund

  • Bottom quartile AUM (₹2,797 Cr).
  • Established history (16+ yrs).
  • Rating: 2★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 5.37% (bottom quartile).
  • 3Y return: 5.98% (bottom quartile).
  • 1Y return: -9.13% (bottom quartile).
  • 1M return: -0.34% (bottom quartile).
  • Alpha: -0.67 (bottom quartile).
  • Sharpe: -0.33 (bottom quartile).
  • Information ratio: -13.02 (bottom quartile).
  • Top sector: Financial Services.
  • Top bond sector: Cash Equivalent.
  • Equity-heavy allocation (~100%).
  • Largest holding HDFC Bank Ltd (~9.8%).

Below is the key information for Bandhan Nifty Fund

Bandhan Nifty Fund
Growth
Launch Date 30 Apr 10
NAV (16 Oct 26) ₹50.0684 ↑ 0.33   (0.66 %)
Net Assets (Cr) ₹2,797 on 31 Jul 26
Category Others - Index Fund
AMC IDFC Asset Management Company Limited
Rating ☆☆
Risk Moderately High
Expense Ratio 0.6
Sharpe Ratio -0.33
Information Ratio -13.02
Alpha Ratio -0.67
Min Investment 100
Min SIP Investment 1,000
Exit Load 0-7 Days (1%),7 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
30 Sep 21₹10,000
30 Sep 22₹9,804
30 Sep 23₹11,303
30 Sep 24₹14,921
30 Sep 25₹14,309
30 Sep 26₹13,208

Bandhan Nifty Fund SIP Returns

   
My Monthly Investment:
₹
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120
Invest Now

Returns for Bandhan Nifty Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Oct 26

DurationReturns
1 Month -0.3%
3 Month -3.7%
6 Month -3.8%
1 Year -9.1%
3 Year 6%
5 Year 5.4%
10 Year
15 Year
Since launch 10.3%
Historical performance (Yearly) on absolute basis
YearReturns
2025 11.2%
2024 9.2%
2023 20.5%
2022 5.4%
2021 24.4%
2020 16.2%
2019 12.9%
2018 4.4%
2017 29.5%
2016 3.9%
Fund Manager information for Bandhan Nifty Fund
NameSinceTenure
Abhishek Jain8 Mar 251.48 Yr.
Mayuresh Nagvekar17 Feb 260.54 Yr.

Data below for Bandhan Nifty Fund as on 31 Jul 26

Asset Allocation
Asset ClassValue
Cash0.13%
Equity99.87%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 10 | HDFCBANK
10%₹277 Cr3,904,246
↑ 78,212
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 10 | ICICIBANK
9%₹266 Cr1,826,447
↑ 36,589
Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 10 | RELIANCE
8%₹220 Cr1,722,411
↑ 34,504
Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Apr 10 | BHARTIARTL
5%₹140 Cr775,295
↑ 15,531
Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | LT
4%₹121 Cr298,414
↑ 5,978
State Bank of India (Financial Services)
Equity, Since 31 Aug 11 | SBIN
4%₹112 Cr1,053,860
↑ 21,111
Infosys Ltd (Technology)
Equity, Since 30 Apr 10 | INFY
4%₹101 Cr894,269
↑ 17,914
Axis Bank Ltd (Financial Services)
Equity, Since 30 Apr 10 | 532215
3%₹95 Cr732,220
↑ 14,668
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | KOTAKBANK
3%₹79 Cr1,877,141
↑ 37,604
Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Jan 11 | M&M
3%₹75 Cr227,622
↑ 4,560

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Experience
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Our Research Process

  • Data sourcing: SEBI-registered fund houses & verified third-party provider Morning Star
  • Screening: Returns, manager track record, expenses, sector mix, risk-adjusted metrics.
  • Expert review: Senior team members review every article and list for accuracy.
  • Updates: Regular refreshes so performance data reflects current market conditions.

Why Trust Us

  • Regulated & compliant: AMFI-registered and MCA-incorporated.
  • Investor-first: No pay-to-promote lists; suitability and performance drive coverage.
  • Education-focused: We simplify complex concepts for everyday investors.

Disclaimer

Content is for educational and informational purposes only and is not investment advice. Please consider your risk profile and consult a financial advisor before investing.

Historical Performance of Nifty Index

To understand why these funds are attractive, let’s look at the Nifty’s performance:

  • 10-year CAGR (2013–2023): ~12.5%
  • 5-year CAGR (2018–2023): ~11.2%
  • 1-year return (2023): ~20%

This shows that over long horizons, Nifty Index Funds have generated steady wealth, beating inflation and offering compounding growth.

(Note: Returns vary depending on market cycles, but long-term investors benefit from India’s economic growth story.)

Risks of Nifty Index Funds

While index funds are considered safe, they are not risk-free:

  1. Market Risk – If the Nifty falls due to global or domestic factors, your fund will also fall.

  2. Tracking Error – Slight mismatches between the index and fund returns can occur due to costs or timing.

  3. No Outperformance – Unlike active funds, index funds will never beat the market — they only replicate it.

Nifty Index Fund vs Nifty ETF: What’s the Difference?

Many investors confuse index funds with ETFs. Here’s the difference:

Feature Nifty Index Fund Nifty ETF
Trading Bought/sold like mutual funds (NAV-based) Traded on stock exchanges like shares
Convenience SIP option available Requires Demat account
Liquidity Daily NAV-based Intraday trading possible
Costs Slightly higher than ETFs Slightly lower expense ratio

For most retail investors, index funds via SIPs are more convenient than ETFs.

How Invest in Nifty Index Funds Online?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

    Get Started

How to Choose the Best Nifty Index Fund

When selecting an index fund, look beyond just returns. Key factors include:

  • Expense Ratio – Lower costs = better long-term returns.
  • Tracking Error – Smaller error ensures closer alignment with Nifty performance.
  • Fund Size (AUM) – Larger funds usually have better liquidity and efficiency.
  • Fund House Reputation – Choose AMCs with strong track records in passive funds.

Some of the well-known Nifty Index Funds in India include:

  • HDFC Index Fund – Nifty 50 Plan
  • UTI Nifty Index Fund
  • ICICI Prudential Nifty Index Fund
  • Nippon India Index Fund – Nifty 50 Plan

Who Should Invest in Nifty Index Funds?

  • ✅ Beginners starting their investment journey.
  • ✅ Investors seeking long-term wealth creation.
  • ✅ Those who prefer passive investing with low costs.
  • ✅ Investors who want India’s growth story in one basket.

However, if you seek Alpha (market-beating returns), active funds or thematic strategies may be better.

Conclusion

Nifty Index Funds represent the power of passive investing in India. By offering low costs, diversification, and steady returns, they provide a reliable wealth-building tool for retail investors.

As India’s economy continues to expand, the Nifty 50 will remain a reflection of the country’s growth. For investors who want simplicity, transparency, and long-term compounding, Nifty Index Funds deserve a place in their portfolio.

👉 The real question is not whether you should invest, but how soon you start.

Disclaimer:
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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