Table of Contents
Top 5 Others - Index Fund Funds
The passive Investing is a popular investment strategy worldwide. This strategy aims at getting maximum returns with minimum sales and purchase.
Passive investing strategy aims at keeping costs as low as possible, but building on returns. This strategy looks to avoid any fees or limited performance that occurs with trading frequently. It focuses on building on wealth gradually.
It emphasises on buying security for long-term and therefore it is also known as the buy-and-hold strategy. This means that it focusses on buying a good collection of long-term holdings that are balanced across various industries, sectors, Market capitalisation sizes and countries. These holdings are never sold under almost any circumstance despite the distress in conditions.
Passive investing works well under the majority of the circumstances because investors are protected from their own irrational behaviour. Investors are prone to panic or have little or no knowledge of Accounting and finance along with time constraints. The passive investing strategy helps investing at a low cost and gaining returns in the long-term.
Passive investment strategy has received due attention only in the past few decades. Index Funds help in taking the full advantage of this strategy by helping with regular purchases along with other additional purchases through the dollar-cost averaging method.
Index funds were introduced in the 1970s. It made some successful returns in the market. In the 1990s, ETFs that tracks major indices like SPDR S&P 500 ETF (SPY), made this process simpler by letting investors trade index funds like stocks.
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Passive investing through indexing is a brilliant way of diversification. Maintaining a well-diversified Portfolio is essential for investors to successfully invest.
As there is no fund management team to pick stocks, it comes at low cost. Passive stocks follow the index they employ as the benchmark.
Passive investing is a buy-and-hold strategy, which helps investors to assess and hold their stocks for the long-term. Therefore, the investor will not be seeing any massive Capital Gain within a year, which leads to tax-Efficiency.
Its major advantage is when passive investing is done through index funds. It is because assets are clearly visible when it comes to index funds.
Since it involves index funds, a group of indices is easier to implement and also comprehend than a more dynamic strategy. Dynamic strategies involve constant research and adjustment.
Passive investing and active investment strategies have certain differences.
They are mentioned below:
Passive Investing | Active Investing |
---|---|
Passive Investing involves low costs | Active investing is very expensive because of active buying, etc. |
Passive investing is limited to a particular index or already determined set of investment with no scope for a variance | Active investing involves flexibility with the buying of stocks and don’t require to follow a specific index |
Passive investing is about portfolios tied with index funds or ETFs. However, take a look at the strategies mentioned below:
An investor can buy index funds to take complete advantage of this strategy. Index fund purchases the entire index stock with the same proportion as the index. This can be purchased from distributors and fund houses online. One of the major advantages of index funds is that the costs are extremely low as compared to active funds.
Exchange Trade Funds (ETFs) create a portfolio of index stocks in the same proportion as the index fund. However, ETFs are listed on the stock exchange and can be purchased and sold at popular well-known stock exchanges. Investors can avail ETFs on gold, silver, equity indices, debt market indices, etc. This can be purchased and sold through the investor’s existing equity Trading Account and can be held under the regular Demat account.
Investors can use the passive investing strategy with direct equities too. But the challenge will lie in the tracking index changes, weightage changes, corporate actions among others.
If you are looking for investing with the passive investing strategy in mind, there are certain things you should be aware of. They are mentioned below:
If you are looking forwards to invest in a long-term, then you should opt for this strategy. Otherwise, it is advisable to consider other options for investment.
As an investor, if you are looking to spend less because of various reasons, a passive investment strategy can be considered.
As an investor, if you don’t wish to spend much time managing assets, then this strategy would be ideal for you.
If you are looking for a strategy that will help you deal with not interfering with your investments, then you should opt for the passive investment strategy. It will help you keep yourself away from interfering with your investments in periods of panic or distress. This will help you deal with interference that is usually the problem with investing regularly.
Frequently checking portfolio will bring various emotions in play like over-enthusiasm or discouragement and panic. In such times, investors are bound to transfer funds. This goes against the core principle of passive investing.
In India, the passive investing strategy in exchange-traded funds (ETFs) is gaining momentum. According to data from the Association of Mutual Funds in India (AMFI), ETFs attracted Rs. 24,083 crore in the first eight months of the financial year 2020. This was because of double inflow based on Large cap funds and half of the total inflows based on Equity Funds during the time. Therefore, the combined flow in equity scheme between April and November 2019 was Rs. 48,891 crore.
A report mentioned that the lower expense ratio, market polarisation for large-cap stocks, converging returns with large-cap funds, provident funds investment in an equity markets by ETFs play the major role in this increase.
Here are the best index Passive Funds you can choose to invest:
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) Nippon India Index Fund - Sensex Plan Growth ₹42.4868
↓ -0.23 ₹890 8.5 7.5 6.5 17.1 19.8 8.9 LIC MF Index Fund Sensex Growth ₹156.382
↓ -0.86 ₹89 8.3 7.2 5.8 16.6 19.2 8.2 Franklin India Index Fund Nifty Plan Growth ₹205.429
↓ -0.98 ₹737 8.8 8.4 7 17.9 20.4 9.5 SBI Nifty Index Fund Growth ₹225.106
↓ -1.07 ₹9,839 8.9 8.4 7 18.1 20.6 9.5 IDBI Nifty Index Fund Growth ₹36.2111
↓ -0.02 ₹208 9.1 11.9 16.2 20.3 11.7 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 30 Jun 25
*Below is the list for Index Mutual Funds having atleast 15 Crore
or more in Net Assets.
The primary investment objective of the scheme is to replicate the composition of the Sensex, with a view to generate returns that are commensurate with the performance of the Sensex, subject to tracking errors. Nippon India Index Fund - Sensex Plan is a Others - Index Fund fund was launched on 28 Sep 10. It is a fund with Moderately High risk and has given a Below is the key information for Nippon India Index Fund - Sensex Plan Returns up to 1 year are on The main investment objective of the fund is to generate returns commensurate with the performance of the index either Nifty / Sensex based on the plans by investing in the respective index stocks subject to tracking errors. LIC MF Index Fund Sensex is a Others - Index Fund fund was launched on 14 Nov 02. It is a fund with Moderately High risk and has given a Below is the key information for LIC MF Index Fund Sensex Returns up to 1 year are on The Investment Objective of the Scheme is to invest in companies whose securities are included in the Nifty and subject to tracking errors, endeavouring to attain results commensurate with the Nifty 50 under NSENifty Plan Franklin India Index Fund Nifty Plan is a Others - Index Fund fund was launched on 4 Aug 00. It is a fund with Moderately High risk and has given a Below is the key information for Franklin India Index Fund Nifty Plan Returns up to 1 year are on The scheme will adopt a passive investment strategy. The scheme will
invest in stocks comprising the Nifty 50 Index in the same proportion as in the
index with the objective of achieving returns equivalent to the Total Returns
Index of Nifty 50 Index by minimizing the performance difference between the
benchmark index and the scheme. The Total Returns Index is an index that
reflects the returns on the index from index gain/loss plus dividend payments
by the constituent stocks. SBI Nifty Index Fund is a Others - Index Fund fund was launched on 17 Jan 02. It is a fund with Moderately High risk and has given a Below is the key information for SBI Nifty Index Fund Returns up to 1 year are on The investment objective of the scheme is to invest in the stocks and equity related instruments comprising the S&P CNX Nifty Index in the same weights as these stocks represented in the Index with the intent to replicate the performance of the Total Returns Index of S&P CNX Nifty index. The scheme will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the S&P CNX Nifty index (Total Returns Index) and the scheme. IDBI Nifty Index Fund is a Others - Index Fund fund was launched on 25 Jun 10. It is a fund with Moderately High risk and has given a Below is the key information for IDBI Nifty Index Fund Returns up to 1 year are on 1. Nippon India Index Fund - Sensex Plan
CAGR/Annualized
return of 10.3% since its launch. Ranked 74 in Index Fund
category. Return for 2024 was 8.9% , 2023 was 19.5% and 2022 was 5% . Nippon India Index Fund - Sensex Plan
Growth Launch Date 28 Sep 10 NAV (30 Jun 25) ₹42.4868 ↓ -0.23 (-0.54 %) Net Assets (Cr) ₹890 on 31 May 25 Category Others - Index Fund AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 0.58 Sharpe Ratio 0.33 Information Ratio -10.19 Alpha Ratio -0.56 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-7 Days (0.25%),7 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Jun 20 ₹10,000 30 Jun 21 ₹15,110 30 Jun 22 ₹15,369 30 Jun 23 ₹18,833 30 Jun 24 ₹23,159 Returns for Nippon India Index Fund - Sensex Plan
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 30 Jun 25 Duration Returns 1 Month 2.9% 3 Month 8.5% 6 Month 7.5% 1 Year 6.5% 3 Year 17.1% 5 Year 19.8% 10 Year 15 Year Since launch 10.3% Historical performance (Yearly) on absolute basis
Year Returns 2024 8.9% 2023 19.5% 2022 5% 2021 22.4% 2020 16.6% 2019 14.2% 2018 6.2% 2017 27.9% 2016 2% 2015 -4.7% Fund Manager information for Nippon India Index Fund - Sensex Plan
Name Since Tenure Himanshu Mange 23 Dec 23 1.44 Yr. Data below for Nippon India Index Fund - Sensex Plan as on 31 May 25
Asset Allocation
Asset Class Value Cash 0.27% Equity 99.73% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | 50018016% ₹138 Cr 712,150
↑ 4,623 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | 53217411% ₹97 Cr 669,201
↑ 4,344 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 10 | 50032510% ₹90 Cr 636,179
↑ 4,129 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | 5002096% ₹52 Cr 335,753
↑ 2,179 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 10 | 5324545% ₹47 Cr 251,979
↑ 1,636 Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | 5005105% ₹40 Cr 109,904
↑ 714 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | 5008754% ₹36 Cr 870,584
↑ 5,651 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Oct 10 | 5325404% ₹33 Cr 95,252
↑ 619 Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | 5322154% ₹32 Cr 267,834
↑ 1,738 State Bank of India (Financial Services)
Equity, Since 31 Oct 10 | 5001123% ₹29 Cr 360,823
↑ 2,343 2. LIC MF Index Fund Sensex
CAGR/Annualized
return of 13.4% since its launch. Ranked 79 in Index Fund
category. Return for 2024 was 8.2% , 2023 was 19% and 2022 was 4.6% . LIC MF Index Fund Sensex
Growth Launch Date 14 Nov 02 NAV (30 Jun 25) ₹156.382 ↓ -0.86 (-0.55 %) Net Assets (Cr) ₹89 on 31 May 25 Category Others - Index Fund AMC LIC Mutual Fund Asset Mgmt Co Ltd Rating ☆ Risk Moderately High Expense Ratio 0.98 Sharpe Ratio 0.28 Information Ratio -9.84 Alpha Ratio -1.16 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Months (1%),1 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Jun 20 ₹10,000 30 Jun 21 ₹15,025 30 Jun 22 ₹15,199 30 Jun 23 ₹18,607 30 Jun 24 ₹22,763 Returns for LIC MF Index Fund Sensex
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 30 Jun 25 Duration Returns 1 Month 2.9% 3 Month 8.3% 6 Month 7.2% 1 Year 5.8% 3 Year 16.6% 5 Year 19.2% 10 Year 15 Year Since launch 13.4% Historical performance (Yearly) on absolute basis
Year Returns 2024 8.2% 2023 19% 2022 4.6% 2021 21.9% 2020 15.9% 2019 14.6% 2018 5.6% 2017 27.4% 2016 1.6% 2015 -5.4% Fund Manager information for LIC MF Index Fund Sensex
Name Since Tenure Sumit Bhatnagar 3 Oct 23 1.66 Yr. Data below for LIC MF Index Fund Sensex as on 31 May 25
Asset Allocation
Asset Class Value Cash 0.48% Equity 99.52% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | 50018016% ₹14 Cr 71,413
↑ 155 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 09 | 53217411% ₹10 Cr 67,145
↑ 394 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 09 | 50032510% ₹9 Cr 63,780
↑ 322 Infosys Ltd (Technology)
Equity, Since 31 Mar 09 | 5002096% ₹5 Cr 33,612 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Apr 09 | 5324545% ₹5 Cr 25,310 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Mar 09 | 5005105% ₹4 Cr 10,982 ITC Ltd (Consumer Defensive)
Equity, Since 30 Sep 11 | 5008754% ₹4 Cr 87,321
↑ 718 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 09 | 5325404% ₹3 Cr 9,534 Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | 5322154% ₹3 Cr 26,684 State Bank of India (Financial Services)
Equity, Since 31 Mar 09 | 5001123% ₹3 Cr 35,996 3. Franklin India Index Fund Nifty Plan
CAGR/Annualized
return of 12.9% since its launch. Ranked 76 in Index Fund
category. Return for 2024 was 9.5% , 2023 was 20.2% and 2022 was 4.9% . Franklin India Index Fund Nifty Plan
Growth Launch Date 4 Aug 00 NAV (30 Jun 25) ₹205.429 ↓ -0.98 (-0.47 %) Net Assets (Cr) ₹737 on 31 May 25 Category Others - Index Fund AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆ Risk Moderately High Expense Ratio 0.62 Sharpe Ratio 0.3 Information Ratio -3.73 Alpha Ratio -0.55 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-30 Days (1%),30 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Jun 20 ₹10,000 30 Jun 21 ₹15,291 30 Jun 22 ₹15,431 30 Jun 23 ₹18,818 30 Jun 24 ₹23,635 Returns for Franklin India Index Fund Nifty Plan
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 30 Jun 25 Duration Returns 1 Month 3.3% 3 Month 8.8% 6 Month 8.4% 1 Year 7% 3 Year 17.9% 5 Year 20.4% 10 Year 15 Year Since launch 12.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 9.5% 2023 20.2% 2022 4.9% 2021 24.3% 2020 14.7% 2019 12% 2018 3.2% 2017 28.3% 2016 3.3% 2015 -3.6% Fund Manager information for Franklin India Index Fund Nifty Plan
Name Since Tenure Sandeep Manam 18 Oct 21 3.62 Yr. Shyam Sriram 26 Sep 24 0.68 Yr. Data below for Franklin India Index Fund Nifty Plan as on 31 May 25
Asset Allocation
Asset Class Value Cash 0.46% Equity 99.54% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | HDFCBANK13% ₹97 Cr 499,086
↓ -2,153 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | ICICIBANK9% ₹67 Cr 462,706
↓ -2,289 Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE9% ₹63 Cr 444,008
↓ -2,075 Infosys Ltd (Technology)
Equity, Since 29 Feb 12 | INFY5% ₹37 Cr 235,671
↓ -1,105 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 04 | BHARTIARTL4% ₹33 Cr 175,629
↓ -824 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Jun 12 | LT4% ₹28 Cr 76,852
↓ -361 ITC Ltd (Consumer Defensive)
Equity, Since 31 Mar 11 | ITC3% ₹25 Cr 609,403
↓ -2,860 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS3% ₹23 Cr 66,862
↓ -313 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 09 | AXISBANK3% ₹22 Cr 187,072
↓ -878 State Bank of India (Financial Services)
Equity, Since 31 Jan 03 | SBIN3% ₹20 Cr 251,517
↓ -1,180 4. SBI Nifty Index Fund
CAGR/Annualized
return of 14.4% since its launch. Ranked 75 in Index Fund
category. Return for 2024 was 9.5% , 2023 was 20.7% and 2022 was 5.1% . SBI Nifty Index Fund
Growth Launch Date 17 Jan 02 NAV (30 Jun 25) ₹225.106 ↓ -1.07 (-0.47 %) Net Assets (Cr) ₹9,839 on 31 May 25 Category Others - Index Fund AMC SBI Funds Management Private Limited Rating ☆ Risk Moderately High Expense Ratio 0.5 Sharpe Ratio 0.31 Information Ratio -21.57 Alpha Ratio -0.53 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-15 Days (0.2%),15 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Jun 20 ₹10,000 30 Jun 21 ₹15,345 30 Jun 22 ₹15,507 30 Jun 23 ₹18,951 30 Jun 24 ₹23,875 Returns for SBI Nifty Index Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 30 Jun 25 Duration Returns 1 Month 3.3% 3 Month 8.9% 6 Month 8.4% 1 Year 7% 3 Year 18.1% 5 Year 20.6% 10 Year 15 Year Since launch 14.4% Historical performance (Yearly) on absolute basis
Year Returns 2024 9.5% 2023 20.7% 2022 5.1% 2021 24.7% 2020 14.6% 2019 12.5% 2018 3.8% 2017 29.1% 2016 3.4% 2015 -4.2% Fund Manager information for SBI Nifty Index Fund
Name Since Tenure Raviprakash Sharma 1 Feb 11 14.34 Yr. Pradeep Kesavan 1 Dec 23 1.5 Yr. Data below for SBI Nifty Index Fund as on 31 May 25
Asset Allocation
Asset Class Value Cash 0.15% Equity 99.85% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 03 | HDFCBANK13% ₹1,298 Cr 6,674,893
↑ 63,346 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK9% ₹895 Cr 6,193,221
↑ 58,775 Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE9% ₹845 Cr 5,944,884
↑ 56,420 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY5% ₹494 Cr 3,158,636
↑ 29,976 Bharti Airtel Ltd (Communication Services)
Equity, Since 29 Feb 04 | BHARTIARTL4% ₹437 Cr 2,353,919
↑ 22,338 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Dec 04 | LT4% ₹379 Cr 1,030,039
↑ 9,777 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC3% ₹341 Cr 8,167,686
↑ 77,513 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS3% ₹310 Cr 896,133
↑ 8,502 Axis Bank Ltd (Financial Services)
Equity, Since 28 Feb 10 | AXISBANK3% ₹299 Cr 2,507,280
↑ 23,796 State Bank of India (Financial Services)
Equity, Since 31 Jan 03 | SBIN3% ₹274 Cr 3,371,029
↑ 31,993 5. IDBI Nifty Index Fund
CAGR/Annualized
return of 10.3% since its launch. Ranked 83 in Index Fund
category. . IDBI Nifty Index Fund
Growth Launch Date 25 Jun 10 NAV (28 Jul 23) ₹36.2111 ↓ -0.02 (-0.06 %) Net Assets (Cr) ₹208 on 30 Jun 23 Category Others - Index Fund AMC IDBI Asset Management Limited Rating ☆ Risk Moderately High Expense Ratio 0.9 Sharpe Ratio 1.04 Information Ratio -3.93 Alpha Ratio -1.03 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 30 Jun 20 ₹10,000 30 Jun 21 ₹15,187 30 Jun 22 ₹15,311 30 Jun 23 ₹18,625 Returns for IDBI Nifty Index Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 30 Jun 25 Duration Returns 1 Month 3.7% 3 Month 9.1% 6 Month 11.9% 1 Year 16.2% 3 Year 20.3% 5 Year 11.7% 10 Year 15 Year Since launch 10.3% Historical performance (Yearly) on absolute basis
Year Returns 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Fund Manager information for IDBI Nifty Index Fund
Name Since Tenure Data below for IDBI Nifty Index Fund as on 30 Jun 23
Asset Allocation
Asset Class Value Top Securities Holdings / Portfolio
Name Holding Value Quantity
The passive investing strategy has yielded successful results so far. However, it is important that investors don’t predict future results based on historical data. It is important to understand various aspects of investing well and then commit to it.