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 (%) 2023 (%) LIC MF Index Fund Sensex Growth ₹137.326
↑ 1.22 ₹79 1.6 11.2 28.2 14.7 14 19 Nippon India Index Fund - Sensex Plan Growth ₹37.0244
↑ 0.33 ₹616 1.7 11.5 28.7 15.1 14.3 19.5 ICICI Prudential Nifty Index Fund Growth ₹221.704
↑ 2.01 ₹6,955 2.7 13.4 32.7 16.3 14.7 20.7 SBI Nifty Index Fund Growth ₹194.885
↑ 1.77 ₹6,494 2.6 13.3 32.5 16.1 14.5 20.7 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 28 Mar 24
*Below is the list for Index Mutual Funds having atleast 15 Crore
or more in Net Assets.
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 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 (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 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. LIC MF Index Fund Sensex
CAGR/Annualized
return of 13.6% since its launch. Ranked 79 in Index Fund
category. Return for 2023 was 19% , 2022 was 4.6% and 2021 was 21.9% . LIC MF Index Fund Sensex
Growth Launch Date 14 Nov 02 NAV (28 Mar 24) ₹137.326 ↑ 1.22 (0.89 %) Net Assets (Cr) ₹79 on 29 Feb 24 Category Others - Index Fund AMC LIC Mutual Fund Asset Mgmt Co Ltd Rating ☆ Risk Moderately High Expense Ratio 0.99 Sharpe Ratio 1.39 Information Ratio -8.06 Alpha Ratio -1.08 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 19 ₹10,000 29 Feb 20 ₹10,704 28 Feb 21 ₹13,751 28 Feb 22 ₹15,750 28 Feb 23 ₹16,538 29 Feb 24 ₹20,385 Returns for LIC MF Index Fund Sensex
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 28 Mar 24 Duration Returns 1 Month 1.8% 3 Month 1.6% 6 Month 11.2% 1 Year 28.2% 3 Year 14.7% 5 Year 14% 10 Year 15 Year Since launch 13.6% Historical performance (Yearly) on absolute basis
Year Returns 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% 2014 29.3% Fund Manager information for LIC MF Index Fund Sensex
Name Since Tenure Sumit Bhatnagar 3 Oct 23 0.41 Yr. Data below for LIC MF Index Fund Sensex as on 29 Feb 24
Asset Allocation
Asset Class Value Cash 0.11% Equity 99.89% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | HDFCBANK13% ₹10 Cr 72,652
↓ -2,149 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 09 | RELIANCE12% ₹10 Cr 33,027
↓ -1,002 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 09 | 5321749% ₹7 Cr 67,279
↓ -1,940 Infosys Ltd (Technology)
Equity, Since 31 Mar 09 | INFY7% ₹6 Cr 34,299
↓ -860 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 09 | TCS5% ₹4 Cr 9,915
↓ -223 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Mar 09 | LT5% ₹4 Cr 11,610
↓ -348 ITC Ltd (Consumer Defensive)
Equity, Since 30 Sep 11 | ITC4% ₹3 Cr 85,069
↓ -1,863 Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | 5322154% ₹3 Cr 26,975
↓ -1,080 State Bank of India (Financial Services)
Equity, Since 31 Mar 09 | SBIN3% ₹3 Cr 36,970
↓ -721 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Apr 09 | BHARTIARTL3% ₹3 Cr 24,238
↓ -692 2. Nippon India Index Fund - Sensex Plan
CAGR/Annualized
return of 10.2% since its launch. Ranked 74 in Index Fund
category. Return for 2023 was 19.5% , 2022 was 5% and 2021 was 22.4% . Nippon India Index Fund - Sensex Plan
Growth Launch Date 28 Sep 10 NAV (28 Mar 24) ₹37.0244 ↑ 0.33 (0.89 %) Net Assets (Cr) ₹616 on 29 Feb 24 Category Others - Index Fund AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 0.74 Sharpe Ratio 1.43 Information Ratio -8.54 Alpha Ratio -0.66 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 19 ₹10,000 29 Feb 20 ₹10,673 28 Feb 21 ₹13,787 28 Feb 22 ₹15,855 28 Feb 23 ₹16,706 29 Feb 24 ₹20,670 Returns for Nippon India Index Fund - Sensex Plan
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 28 Mar 24 Duration Returns 1 Month 1.8% 3 Month 1.7% 6 Month 11.5% 1 Year 28.7% 3 Year 15.1% 5 Year 14.3% 10 Year 15 Year Since launch 10.2% Historical performance (Yearly) on absolute basis
Year Returns 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% 2014 28.7% Fund Manager information for Nippon India Index Fund - Sensex Plan
Name Since Tenure Himanshu Mange 23 Dec 23 0.19 Yr. Data below for Nippon India Index Fund - Sensex Plan as on 29 Feb 24
Asset Allocation
Asset Class Value Cash 0.01% Equity 99.99% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | HDFCBANK13% ₹79 Cr 564,713
↑ 10,512 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 10 | RELIANCE12% ₹75 Cr 256,764
↑ 4,780 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | 5321749% ₹55 Cr 521,465
↑ 9,707 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY7% ₹44 Cr 265,607
↑ 4,944 Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | LT5% ₹31 Cr 89,965
↑ 1,675 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Oct 10 | TCS5% ₹31 Cr 76,239
↑ 1,419 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC4% ₹27 Cr 658,912
↑ 12,265 Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 13 | 5322154% ₹23 Cr 211,018
↑ 3,928 State Bank of India (Financial Services)
Equity, Since 31 Oct 10 | SBIN3% ₹21 Cr 285,568
↑ 5,315 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 10 | BHARTIARTL3% ₹21 Cr 188,204
↑ 3,503 3. ICICI Prudential Nifty Index Fund
CAGR/Annualized
return of 15.1% since its launch. Ranked 71 in Index Fund
category. Return for 2023 was 20.7% , 2022 was 5.2% and 2021 was 24.9% . ICICI Prudential Nifty Index Fund
Growth Launch Date 26 Feb 02 NAV (28 Mar 24) ₹221.704 ↑ 2.01 (0.91 %) Net Assets (Cr) ₹6,955 on 29 Feb 24 Category Others - Index Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.39 Sharpe Ratio 1.74 Information Ratio -8.68 Alpha Ratio -0.4 Min Investment 5,000 Min SIP Investment 100 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 28 Feb 19 ₹10,000 29 Feb 20 ₹10,441 28 Feb 21 ₹13,591 28 Feb 22 ₹15,812 28 Feb 23 ₹16,410 29 Feb 24 ₹20,995 Returns for ICICI Prudential Nifty Index Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 28 Mar 24 Duration Returns 1 Month 1.7% 3 Month 2.7% 6 Month 13.4% 1 Year 32.7% 3 Year 16.3% 5 Year 14.7% 10 Year 15 Year Since launch 15.1% Historical performance (Yearly) on absolute basis
Year Returns 2023 20.7% 2022 5.2% 2021 24.9% 2020 15.2% 2019 12.8% 2018 3.4% 2017 28.7% 2016 3.6% 2015 -3.6% 2014 32.5% Fund Manager information for ICICI Prudential Nifty Index Fund
Name Since Tenure Nishit Patel 18 Jan 21 3.12 Yr. Priya Sridhar 1 Feb 24 0.08 Yr. Ajaykumar Solanki 1 Feb 24 0.08 Yr. Data below for ICICI Prudential Nifty Index Fund as on 29 Feb 24
Asset Allocation
Asset Class Value Cash 0.06% Equity 99.94% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | HDFCBANK12% ₹781 Cr 5,342,785
↑ 128,975 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 05 | RELIANCE10% ₹686 Cr 2,405,160
↑ 58,058 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | ICICIBANK8% ₹513 Cr 4,986,940
↑ 120,386 Infosys Ltd (Technology)
Equity, Since 31 Mar 05 | INFY6% ₹422 Cr 2,537,784
↑ 61,261 Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | LT4% ₹292 Cr 840,465
↑ 20,287 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC4% ₹278 Cr 6,297,715
↑ 152,032 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 05 | TCS4% ₹275 Cr 720,272
↑ 17,383 Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | 5322153% ₹211 Cr 1,973,220
↑ 47,629 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Aug 09 | BHARTIARTL3% ₹211 Cr 1,798,657
↑ 43,418 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 29 Feb 12 | KOTAKBANK3% ₹191 Cr 1,045,699
↑ 25,240 4. SBI Nifty Index Fund
CAGR/Annualized
return of 14.5% since its launch. Ranked 75 in Index Fund
category. Return for 2023 was 20.7% , 2022 was 5.1% and 2021 was 24.7% . SBI Nifty Index Fund
Growth Launch Date 17 Jan 02 NAV (28 Mar 24) ₹194.885 ↑ 1.77 (0.92 %) Net Assets (Cr) ₹6,494 on 29 Feb 24 Category Others - Index Fund AMC SBI Funds Management Private Limited Rating ☆ Risk Moderately High Expense Ratio 0.5 Sharpe Ratio 1.72 Information Ratio -15.98 Alpha Ratio -0.54 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 28 Feb 19 ₹10,000 29 Feb 20 ₹10,406 28 Feb 21 ₹13,483 28 Feb 22 ₹15,664 28 Feb 23 ₹16,243 29 Feb 24 ₹20,758 Returns for SBI Nifty Index Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 28 Mar 24 Duration Returns 1 Month 1.7% 3 Month 2.6% 6 Month 13.3% 1 Year 32.5% 3 Year 16.1% 5 Year 14.5% 10 Year 15 Year Since launch 14.5% Historical performance (Yearly) on absolute basis
Year Returns 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% 2014 30.5% Fund Manager information for SBI Nifty Index Fund
Name Since Tenure Raviprakash Sharma 1 Feb 11 13.09 Yr. Mohit Jain 30 Nov 17 6.25 Yr. Data below for SBI Nifty Index Fund as on 29 Feb 24
Asset Allocation
Asset Class Value Equity 100.52% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 03 | HDFCBANK11% ₹715 Cr 5,093,077
↑ 201,290 Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE10% ₹670 Cr 2,292,749
↑ 90,611 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK8% ₹500 Cr 4,753,870
↑ 187,888 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY6% ₹405 Cr 2,419,176
↑ 95,609 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS4% ₹281 Cr 686,610
↑ 27,131 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Dec 04 | LT4% ₹279 Cr 801,188
↑ 31,663 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC4% ₹244 Cr 6,003,377
↑ 237,267 Axis Bank Ltd (Financial Services)
Equity, Since 28 Feb 10 | 5322153% ₹202 Cr 1,880,999
↑ 74,344 State Bank of India (Financial Services)
Equity, Since 31 Jan 03 | SBIN3% ₹195 Cr 2,600,957
↑ 102,796 Bharti Airtel Ltd (Communication Services)
Equity, Since 29 Feb 04 | BHARTIARTL3% ₹193 Cr 1,714,597
↑ 67,765 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 28 Feb 19 ₹10,000 29 Feb 20 ₹10,390 28 Feb 21 ₹13,464 28 Feb 22 ₹15,499 28 Feb 23 ₹16,007 Returns for IDBI Nifty Index Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 28 Mar 24 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 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 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.
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