Best Sensex Index Mutual Funds for Investments 2026 - 2027

Updated on March 19, 2026 , 63681 views

Index Funds refer to the Mutual Fund schemes whose Portfolio comprises of shares that form part for a certain benchmark market index. These funds follow a passive strategy wherein; they try to replicate the performance of an index. The portfolio of these schemes will have shares in the same proportion as they are in the benchmark index. The performance of these schemes depends on the performance of the respective benchmark. Sensex Index Mutual Funds refer to the index funds that use BSE Sensex as the benchmark to construct their portfolio. As you can't invest directly in the indices, people try to these proxies of index. Let's understand the concept of index funds.

Illustration:

If the proportion of ONGC Limited shares in a Sensex is 15% then, even the Sensex index fund's portfolio will allocate 15% of its fund money in ONGC shares.

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Fund Selection Methodology used to find 10 funds

Keyword: “sensex”
Tags: sensex
No Of Funds: 10

Top 3 Best Performing Sensex Index Funds 2026

Fund	NAV	Net Assets (Cr)	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2024 (%)
Nippon India Index Fund - Sensex Plan Growth	₹37.9455 ↑ 0.17	₹946	-12.3	-9.8	-1.8	9.6	9	9.8
LIC MF Index Fund Sensex Growth	₹138.996 ↑ 0.60	₹90	-12.4	-10.1	-2.4	9	8.5	9.1
LIC MF Index Fund Nifty Growth	₹127.41 ↑ 0.61	₹353	-11.1	-9	-0.3	10.8	9.5	10.7
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 20 Mar 26

Research Highlights & Commentary of 3 Funds showcased

Commentary	Nippon India Index Fund - Sensex Plan	LIC MF Index Fund Sensex	LIC MF Index Fund Nifty
Point 1	Highest AUM (₹946 Cr).	Bottom quartile AUM (₹90 Cr).	Lower mid AUM (₹353 Cr).
Point 2	Established history (15+ yrs).	Oldest track record among peers (23 yrs).	Established history (23+ yrs).
Point 3	Top rated.	Rating: 1★ (lower mid).	Rating: 1★ (bottom quartile).
Point 4	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.
Point 5	5Y return: 8.98% (lower mid).	5Y return: 8.46% (bottom quartile).	5Y return: 9.45% (upper mid).
Point 6	3Y return: 9.65% (lower mid).	3Y return: 9.04% (bottom quartile).	3Y return: 10.82% (upper mid).
Point 7	1Y return: -1.78% (lower mid).	1Y return: -2.42% (bottom quartile).	1Y return: -0.32% (upper mid).
Point 8	1M return: -10.02% (lower mid).	1M return: -10.06% (bottom quartile).	1M return: -9.67% (upper mid).
Point 9	Alpha: -0.52 (upper mid).	Alpha: -1.19 (bottom quartile).	Alpha: -1.12 (lower mid).
Point 10	Sharpe: 0.58 (lower mid).	Sharpe: 0.52 (bottom quartile).	Sharpe: 0.78 (upper mid).

Nippon India Index Fund - Sensex Plan

Highest AUM (₹946 Cr).
Established history (15+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 8.98% (lower mid).
3Y return: 9.65% (lower mid).
1Y return: -1.78% (lower mid).
1M return: -10.02% (lower mid).
Alpha: -0.52 (upper mid).
Sharpe: 0.58 (lower mid).

LIC MF Index Fund Sensex

Bottom quartile AUM (₹90 Cr).
Oldest track record among peers (23 yrs).
Rating: 1★ (lower mid).
Risk profile: Moderately High.
5Y return: 8.46% (bottom quartile).
3Y return: 9.04% (bottom quartile).
1Y return: -2.42% (bottom quartile).
1M return: -10.06% (bottom quartile).
Alpha: -1.19 (bottom quartile).
Sharpe: 0.52 (bottom quartile).

LIC MF Index Fund Nifty

Lower mid AUM (₹353 Cr).
Established history (23+ yrs).
Rating: 1★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 9.45% (upper mid).
3Y return: 10.82% (upper mid).
1Y return: -0.32% (upper mid).
1M return: -9.67% (upper mid).
Alpha: -1.12 (lower mid).
Sharpe: 0.78 (upper mid).

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Data specialists processing NAVs, allocations, and risk metrics from Morning Star.

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Updates: Regular refreshes so performance data reflects current market conditions.

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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.

1. Nippon India Index Fund - Sensex Plan

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.

Research Highlights for Nippon India Index Fund - Sensex Plan

Highest AUM (₹946 Cr).
Established history (15+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 8.98% (lower mid).
3Y return: 9.65% (lower mid).
1Y return: -1.78% (lower mid).
1M return: -10.02% (lower mid).
Alpha: -0.52 (upper mid).
Sharpe: 0.58 (lower mid).
Information ratio: -10.75 (upper mid).
Top sector: Financial Services.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~100%).
Largest holding HDFC Bank Ltd (~14.0%).

Below is the key information for Nippon India Index Fund - Sensex Plan

Nippon India Index Fund - Sensex Plan Growth
Launch Date	28 Sep 10
NAV (20 Mar 26)	₹37.9455 ↑ 0.17 (0.44 %)
Net Assets (Cr)	₹946 on 28 Feb 26
Category	Others - Index Fund
AMC	Nippon Life Asset Management Ltd.
Rating	☆☆
Risk	Moderately High
Expense Ratio	0.49
Sharpe Ratio	0.58
Information Ratio	-10.75
Alpha Ratio	-0.52
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
28 Feb 21	₹10,000
28 Feb 22	₹11,499
28 Feb 23	₹12,117
29 Feb 24	₹14,992
28 Feb 25	₹15,236
28 Feb 26	₹17,022

Nippon India Index Fund - Sensex Plan SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹376,357.
Net Profit of ₹76,357 Invest Now

Returns for Nippon India Index Fund - Sensex Plan

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Mar 26

Duration	Returns
1 Month	-10%
3 Month	-12.3%
6 Month	-9.8%
1 Year	-1.8%
3 Year	9.6%
5 Year	9%
10 Year
15 Year
Since launch	9%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	9.8%
2023	8.9%
2022	19.5%
2021	5%
2020	22.4%
2019	16.6%
2018	14.2%
2017	6.2%
2016	27.9%
2015	2%

Fund Manager information for Nippon India Index Fund - Sensex Plan

Name	Since	Tenure
Himanshu Mange	23 Dec 23	2.19 Yr.

Data below for Nippon India Index Fund - Sensex Plan as on 28 Feb 26

Asset Allocation

Asset Class	Value
Cash	0.12%
Equity	99.88%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Ltd (Financial Services) Equity, Since 31 Oct 10 \| 500180	14%	₹133 Cr	1,497,119 ↓ -371
ICICI Bank Ltd (Financial Services) Equity, Since 31 Oct 10 \| 532174	10%	₹97 Cr	702,793 ↓ -175
Reliance Industries Ltd (Energy) Equity, Since 31 Oct 10 \| 500325	10%	₹93 Cr	665,434 ↓ -165
Bharti Airtel Ltd (Communication Services) Equity, Since 31 Oct 10 \| 532454	5%	₹52 Cr	274,783 ↓ -68
Larsen & Toubro Ltd (Industrials) Equity, Since 29 Feb 12 \| 500510	5%	₹49 Cr	114,991 ↓ -28
State Bank of India (Financial Services) Equity, Since 31 Oct 10 \| 500112	5%	₹49 Cr	408,509 ↓ -101
Infosys Ltd (Technology) Equity, Since 31 Oct 10 \| 500209	5%	₹46 Cr	351,370 ↓ -87
Axis Bank Ltd (Financial Services) Equity, Since 31 Dec 13 \| 532215	4%	₹39 Cr	280,802 ↓ -69
Kotak Mahindra Bank Ltd (Financial Services) Equity, Since 30 Jun 17 \| 500247	3%	₹30 Cr	723,625 ↓ -180
Mahindra & Mahindra Ltd (Consumer Cyclical) Equity, Since 31 Oct 10 \| 500520	3%	₹30 Cr	88,053 ↓ -22

2. LIC MF Index Fund Sensex

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.

Research Highlights for LIC MF Index Fund Sensex

Bottom quartile AUM (₹90 Cr).
Oldest track record among peers (23 yrs).
Rating: 1★ (lower mid).
Risk profile: Moderately High.
5Y return: 8.46% (bottom quartile).
3Y return: 9.04% (bottom quartile).
1Y return: -2.42% (bottom quartile).
1M return: -10.06% (bottom quartile).
Alpha: -1.19 (bottom quartile).
Sharpe: 0.52 (bottom quartile).
Information ratio: -18.44 (bottom quartile).
Top sector: Financial Services.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~100%).
Largest holding HDFC Bank Ltd (~14.1%).

Below is the key information for LIC MF Index Fund Sensex

LIC MF Index Fund Sensex Growth
Launch Date	14 Nov 02
NAV (20 Mar 26)	₹138.996 ↑ 0.60 (0.43 %)
Net Assets (Cr)	₹90 on 28 Feb 26
Category	Others - Index Fund
AMC	LIC Mutual Fund Asset Mgmt Co Ltd
Rating	☆
Risk	Moderately High
Expense Ratio	0.98
Sharpe Ratio	0.52
Information Ratio	-18.44
Alpha Ratio	-1.19
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
28 Feb 21	₹10,000
28 Feb 22	₹11,454
28 Feb 23	₹12,027
29 Feb 24	₹14,825
28 Feb 25	₹14,976
28 Feb 26	₹16,618

LIC MF Index Fund Sensex SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹376,357.
Net Profit of ₹76,357 Invest Now

Returns for LIC MF Index Fund Sensex

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Mar 26

Duration	Returns
1 Month	-10.1%
3 Month	-12.4%
6 Month	-10.1%
1 Year	-2.4%
3 Year	9%
5 Year	8.5%
10 Year
15 Year
Since launch	12.4%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	9.1%
2023	8.2%
2022	19%
2021	4.6%
2020	21.9%
2019	15.9%
2018	14.6%
2017	5.6%
2016	27.4%
2015	1.6%

Fund Manager information for LIC MF Index Fund Sensex

Name	Since	Tenure
Sumit Bhatnagar	3 Oct 23	2.41 Yr.

Data below for LIC MF Index Fund Sensex as on 28 Feb 26

Asset Allocation

Asset Class	Value
Cash	0.18%
Equity	99.82%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Ltd (Financial Services) Equity, Since 31 Mar 09 \| 500180	14%	₹13 Cr	142,611 ↑ 806
ICICI Bank Ltd (Financial Services) Equity, Since 30 Apr 09 \| 532174	10%	₹9 Cr	66,931 ↑ 286
Reliance Industries Ltd (Energy) Equity, Since 31 Mar 09 \| 500325	10%	₹9 Cr	63,387 ↑ 259
Bharti Airtel Ltd (Communication Services) Equity, Since 30 Apr 09 \| 532454	5%	₹5 Cr	26,168 ↑ 181
Larsen & Toubro Ltd (Industrials) Equity, Since 31 Mar 09 \| 500510	5%	₹5 Cr	10,898
State Bank of India (Financial Services) Equity, Since 31 Mar 09 \| 500112	5%	₹5 Cr	38,736
Infosys Ltd (Technology) Equity, Since 31 Mar 09 \| 500209	5%	₹4 Cr	33,475 ↑ 238
Axis Bank Ltd (Financial Services) Equity, Since 31 Dec 13 \| 532215	4%	₹4 Cr	26,687
Mahindra & Mahindra Ltd (Consumer Cyclical) Equity, Since 31 Mar 12 \| 500520	3%	₹3 Cr	8,389 ↑ 78
Kotak Mahindra Bank Ltd (Financial Services) Equity, Since 30 Jun 17 \| 500247	3%	₹3 Cr	68,674

3. LIC MF Index Fund Nifty

Research Highlights for LIC MF Index Fund Nifty

Lower mid AUM (₹353 Cr).
Established history (23+ yrs).
Rating: 1★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 9.45% (upper mid).
3Y return: 10.82% (upper mid).
1Y return: -0.32% (upper mid).
1M return: -9.67% (upper mid).
Alpha: -1.12 (lower mid).
Sharpe: 0.78 (upper mid).
Information ratio: -16.80 (lower mid).
Top sector: Financial Services.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~100%).
Largest holding HDFC Bank Ltd (~11.8%).

Below is the key information for LIC MF Index Fund Nifty

LIC MF Index Fund Nifty Growth
Launch Date	14 Nov 02
NAV (20 Mar 26)	₹127.41 ↑ 0.61 (0.48 %)
Net Assets (Cr)	₹353 on 28 Feb 26
Category	Others - Index Fund
AMC	LIC Mutual Fund Asset Mgmt Co Ltd
Rating	☆
Risk	Moderately High
Expense Ratio	0.94
Sharpe Ratio	0.78
Information Ratio	-16.8
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
28 Feb 21	₹10,000
28 Feb 22	₹11,558
28 Feb 23	₹11,931
29 Feb 24	₹15,143
28 Feb 25	₹15,260
28 Feb 26	₹17,363

LIC MF Index Fund Nifty SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹385,859.
Net Profit of ₹85,859 Invest Now

Returns for LIC MF Index Fund Nifty

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Mar 26

Duration	Returns
1 Month	-9.7%
3 Month	-11.1%
6 Month	-9%
1 Year	-0.3%
3 Year	10.8%
5 Year	9.5%
10 Year
15 Year
Since launch	12%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	10.7%
2023	8.8%
2022	19.8%
2021	4.7%
2020	23.8%
2019	14.7%
2018	12.6%
2017	2.6%
2016	28.6%
2015	2.7%

Fund Manager information for LIC MF Index Fund Nifty

Name	Since	Tenure
Sumit Bhatnagar	3 Oct 23	2.41 Yr.

Data below for LIC MF Index Fund Nifty as on 28 Feb 26

Asset Allocation

Asset Class	Value
Cash	0.29%
Equity	99.71%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Ltd (Financial Services) Equity, Since 30 Apr 09 \| HDFCBANK	12%	₹42 Cr	469,911 ↓ -3,751
ICICI Bank Ltd (Financial Services) Equity, Since 30 Apr 09 \| ICICIBANK	9%	₹30 Cr	219,497 ↓ -1,864
Reliance Industries Ltd (Energy) Equity, Since 31 Mar 12 \| RELIANCE	8%	₹29 Cr	207,161 ↓ -2,544
Bharti Airtel Ltd (Communication Services) Equity, Since 30 Apr 09 \| BHARTIARTL	5%	₹16 Cr	85,620 ↓ -692
Larsen & Toubro Ltd (Industrials) Equity, Since 30 Apr 09 \| LT	4%	₹15 Cr	36,021 ↓ -442
State Bank of India (Financial Services) Equity, Since 30 Apr 09 \| SBIN	4%	₹15 Cr	127,567 ↓ -971
Infosys Ltd (Technology) Equity, Since 31 Jan 03 \| INFY	4%	₹14 Cr	107,316 ↓ -1,318
Axis Bank Ltd (Financial Services) Equity, Since 31 Mar 09 \| AXISBANK	3%	₹12 Cr	87,723 ↓ -1,077
Kotak Mahindra Bank Ltd (Financial Services) Equity, Since 30 Apr 10 \| KOTAKBANK	3%	₹9 Cr	225,836 ↓ -2,774
Mahindra & Mahindra Ltd (Consumer Cyclical) Equity, Since 31 Mar 12 \| M&M	3%	₹9 Cr	27,355 ↓ -336

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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.