Index Mutual Funds

Index Funds are a type of mutual fund that aim to replicate the performance of a specific market index, such as the Nifty 50 or Sensex. Since you cannot directly invest in a stock market index, index mutual funds offer a practical way to gain broad market exposure with a single investment. These funds mirror the composition of their chosen index and move in tandem with its performance. While returns are not guaranteed, they typically reflect the market’s overall trend—making them suitable for long-term investors seeking steady, market-linked growth.

Because they are passively managed, index mutual funds often come with lower costs and fewer risks linked to fund manager bias. Ideal for beginners or investors looking for simplicity and diversification, index funds are a smart entry point into equity investing.

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List of Index Mutual Funds

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Search Result - 350 Mutual Funds

Fund Name	Fund Size (Cr.)	3Y Returns	5Y Returns
ICICI Pru NASDAQ 100 Index Fund - Direct Growth Other Index Fund	2,622	36.06%	-	Invest
Motilal Oswal BSE Enhanced Value Index Fund-Dir Growth Other Index Fund	1,181	34.98%	-	Invest
ICICI Pru Nifty Auto Index Fund - Direct Growth Other Index Fund	176	31.81%	-	Invest
Aditya Birla SL Nifty Smallcap 50 IF - Dir Growth Other Index Fund	258	27.63%	16.07%	Invest
AXIS Nifty Smallcap 50 Index Fund - Dir Growth Other Index Fund	551	27.56%	-	Invest
AXIS Nifty Midcap 50 Index Fund - Direct Growth Other Index Fund	562	27.51%	-	Invest
Edelweiss Nifty Midcap150 Momentum 50 Index Fund-Dir Growth Other Index Fund	1,365	26.59%	-	Invest
Motilal Oswal Nifty Midcap 150 Index Fund-Dir Growth Other Index Fund	2,929	25.68%	24.14%	Invest
Tata Nifty Midcap 150 Momentum 50 Index Fund-Dir Growth Other Index Fund	1,060	25.63%	-	Invest
Aditya Birla SL Nifty Midcap 150 IF - Dir Growth Other Index Fund	419	25.58%	-	Invest

Fund Name	1Y Returns	Rating	Fund Size (Cr.)
ICICI Pru NASDAQ 100 Index Fund - Direct Growth Other Index Fund	25.60% Fund Size (Cr.) - 2,622 Invest
Motilal Oswal BSE Enhanced Value Index Fund-Dir Growth Other Index Fund	16.77% Fund Size (Cr.) - 1,181 Invest
ICICI Pru Nifty Auto Index Fund - Direct Growth Other Index Fund	24.11% Fund Size (Cr.) - 176 Invest
Aditya Birla SL Nifty Smallcap 50 IF - Dir Growth Other Index Fund	-2.96% Fund Size (Cr.) - 258 Invest
AXIS Nifty Smallcap 50 Index Fund - Dir Growth Other Index Fund	-3.05% Fund Size (Cr.) - 551 Invest
AXIS Nifty Midcap 50 Index Fund - Direct Growth Other Index Fund	9.30% Fund Size (Cr.) - 562 Invest
Edelweiss Nifty Midcap150 Momentum 50 Index Fund-Dir Growth Other Index Fund	-4.07% Fund Size (Cr.) - 1,365 Invest
Motilal Oswal Nifty Midcap 150 Index Fund-Dir Growth Other Index Fund	6.49% Fund Size (Cr.) - 2,929 Invest
Tata Nifty Midcap 150 Momentum 50 Index Fund-Dir Growth Other Index Fund	-4.21% Fund Size (Cr.) - 1,060 Invest
Aditya Birla SL Nifty Midcap 150 IF - Dir Growth Other Index Fund	6.13% Fund Size (Cr.) - 419 Invest

What are Index Funds?

Index mutual funds are designed to passively track the performance of a specific stock market index by investing in the same companies, in the same proportion. They do not aim to beat the market, but to mirror it.
Because they are not actively managed, index funds eliminate the risk of poor fund manager decisions. Investors benefit from broader market exposure, reduced fees, and long-term growth that reflects the overall economy.

How Do Index Funds Work?

When you invest in an index fund, your money is combined with that of other investors to buy stocks that exactly mirror a specific market index—like the Nifty 50 or Sensex. The fund manager doesn’t select stocks actively but ensures that the portfolio stays aligned with the chosen index in the same weightage.

For example, if HDFC and Infosys make up 10% and 8% of the Nifty 50 respectively, the index fund will aim to maintain those proportions in its portfolio.
This passive, rules-based approach keeps costs low and avoids manager-driven biases. If the index rises by 12%, the fund is expected to deliver a similar return—minus a small tracking error and expense ratio. The simplicity makes it ideal for long-term investors.

Who Should Invest in Index Mutual Funds?

New Investors Seeking Simplicity: Index Mutual Funds are easy to understand and track, making them ideal for beginners.
Long-Term Investors Looking for Stability: Since they follow the overall market, most types of index funds provide steady returns over long investment horizons.
Cost-Conscious Investors: With lower expense ratios than actively managed funds, index mutual funds reduce overall investment costs.
Passive Investors: Ideal for those who prefer a hands-off approach to investing with minimal involvement in daily market movements.

Factors to Consider While Investing in Index Funds

Risks and Returns: Index funds follow the market, so they rise and fall along with it. Returns are market-linked and not guaranteed.
Expense Ratio: These funds typically have low costs, but it's still worth comparing different fund houses for the most efficient option.
Investment Horizon: Index Mutual Funds are best suited for medium to long-term goals, allowing market cycles to even out over time.
Tracking Error: This refers to the deviation between the fund’s performance and that of its benchmark index. Lower tracking errors mean better replication.

What are the Advantages of Investing in Index Funds?

Lower Costs: Since index funds are passively managed, they don’t require constant buying and selling, resulting in reduced fund management fees.
No Fund Manager Bias: As they follow predefined indices, there’s no room for human error or subjective decisions impacting returns.
Market Representation and Diversification: By investing in a basket of companies, index mutual funds offer wide exposure and reduce concentration risk.
High Transparency: Holdings mirror a public index, so you always know where your money is invested.
Historical Performance: Index mutual funds have shown consistent returns in line with the broader market over the long term.
Outperformance vs Active Funds: Many index funds have delivered better results than actively managed funds, particularly after factoring in lower fees and expenses.

Risks Involved with Index Funds

Tracking Error: Slight differences between the fund’s returns and the index it tracks can occur due to fund expenses or execution delays.
Market-Driven Losses: During market downturns, index funds do not have the flexibility to shift assets to safer options and may decline with the index.
Limited Flexibility: Unlike active funds, index mutual funds cannot change holdings based on market conditions, even if some sectors underperform.
Portfolio Concentration Risk: Major indices may be heavily weighted towards a few sectors or companies, creating a potential imbalance in your portfolio.

Taxability of Index Mutual Funds

Index mutual fund taxation depends on the holding period and the type of fund:

Equity-Oriented Index Funds
1. Short-Term Capital Gains (holding < 1 year): Taxed at 20%
2. Long-Term Capital Gains (holding > 1 year): Gains up to ₹1.25 lakh are tax-free. Above that, taxed at 12.5% without indexation.

Debt-Oriented Index Funds
Taxed as per your income slab, regardless of the holding period (as per post-April 2023 tax laws).

Investors should factor in these taxes when planning redemptions to avoid surprises.

What is the Difference Between Index Funds and Mutual Funds?

Parameter	Index Funds	Actively Managed Mutual Funds
Management Style	Passive	Active
Objective	Replicate an index	Outperform the market
Cost	Low expense ratio	Higher due to active management
Returns	Market-linked	May outperform or underperform
Fund Manager Role	Minimal intervention	Active stock selection

Popular Index Mutual Funds

Fund Name
Min Investment Amt
AUM
3Y Returns

ICICI Pru NASDAQ 100 Index Fund - Direct Growth

₹ 100

₹ 2,6220

36.06%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 2,622

3Y Return

36.06%

Motilal Oswal BSE Enhanced Value Index Fund-Dir Growth

₹ 500

₹ 1,1810

34.98%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 1,181

3Y Return

34.98%

ICICI Pru Nifty Auto Index Fund - Direct Growth

₹ 1000

₹ 1760

31.81%

Min SIP Investment Amt

₹ ₹ 1000

AUM (Cr.)

₹ 176

3Y Return

31.81%

Aditya Birla SL Nifty Smallcap 50 IF - Dir Growth

₹ 100

₹ 2580

27.63%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 258

3Y Return

27.63%

AXIS Nifty Smallcap 50 Index Fund - Dir Growth

₹ 100

₹ 5510

27.56%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 551

3Y Return

27.56%

AXIS Nifty Midcap 50 Index Fund - Direct Growth

₹ 100

₹ 5620

27.51%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 562

3Y Return

27.51%

Edelweiss Nifty Midcap150 Momentum 50 Index Fund-Dir Growth

₹ 100

₹ 1,3650

26.59%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 1,365

3Y Return

26.59%

Motilal Oswal Nifty Midcap 150 Index Fund-Dir Growth

₹ 500

₹ 2,9290

25.68%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 2,929

3Y Return

25.68%

Tata Nifty Midcap 150 Momentum 50 Index Fund-Dir Growth

₹ 150

₹ 1,0600

25.63%

Min SIP Investment Amt

₹ ₹ 150

AUM (Cr.)

₹ 1,060

3Y Return

25.63%

Aditya Birla SL Nifty Midcap 150 IF - Dir Growth

₹ 500

₹ 4190

25.58%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 419

3Y Return

25.58%

FAQs

Index Mutual Funds

Kickstart your SIP journey with just ₹100!

List of Index Mutual Funds

Category

Sub Category

Rating

What are Index Funds?

How Do Index Funds Work?

Who Should Invest in Index Mutual Funds?

Factors to Consider While Investing in Index Funds

What are the Advantages of Investing in Index Funds?

Risks Involved with Index Funds

Taxability of Index Mutual Funds

What is the Difference Between Index Funds and Mutual Funds?

Popular Index Mutual Funds

ICICI Pru NASDAQ 100 Index Fund - Direct Growth

₹ 100

₹ 2,6220

36.06%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 2,622

3Y Return

36.06%

Motilal Oswal BSE Enhanced Value Index Fund-Dir Growth

₹ 500

₹ 1,1810

34.98%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 1,181

3Y Return

34.98%

ICICI Pru Nifty Auto Index Fund - Direct Growth

₹ 1000

₹ 1760

31.81%

Min SIP Investment Amt

₹ ₹ 1000

AUM (Cr.)

₹ 176

3Y Return

31.81%

Aditya Birla SL Nifty Smallcap 50 IF - Dir Growth

₹ 100

₹ 2580

27.63%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 258

3Y Return

27.63%

AXIS Nifty Smallcap 50 Index Fund - Dir Growth

₹ 100

₹ 5510

27.56%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 551

3Y Return

27.56%

AXIS Nifty Midcap 50 Index Fund - Direct Growth

₹ 100

₹ 5620

27.51%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 562

3Y Return

27.51%

Edelweiss Nifty Midcap150 Momentum 50 Index Fund-Dir Growth

₹ 100

₹ 1,3650

26.59%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 1,365

3Y Return

26.59%

Motilal Oswal Nifty Midcap 150 Index Fund-Dir Growth

₹ 500

₹ 2,9290

25.68%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 2,929

3Y Return

25.68%

Tata Nifty Midcap 150 Momentum 50 Index Fund-Dir Growth

₹ 150

₹ 1,0600

25.63%

Min SIP Investment Amt

₹ ₹ 150

AUM (Cr.)

₹ 1,060

3Y Return

25.63%

Aditya Birla SL Nifty Midcap 150 IF - Dir Growth

₹ 500

₹ 4190

25.58%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 419

3Y Return

25.58%

Other Calculators

FAQs

What is the Risk Rating of Index Mutual Funds?

What is the Lock-In for Index Mutual Funds?

Is Index Fund Good for SIP?

Can You Withdraw Anytime from Index Funds?

Should I Invest in Individual Stocks or Index Funds?

Do Index Funds Pay Dividends?

Are Index Funds Good for Beginners?

How Often is the Index Rebalanced?

Open Free Demat Account

Index Mutual Funds

Kickstart your SIP journey with just ₹100!

List of Index Mutual Funds

Category

Sub Category

Rating

What are Index Funds?

How Do Index Funds Work?

Who Should Invest in Index Mutual Funds?

Factors to Consider While Investing in Index Funds

What are the Advantages of Investing in Index Funds?

Risks Involved with Index Funds

Taxability of Index Mutual Funds

What is the Difference Between Index Funds and Mutual Funds?

Popular Index Mutual Funds

ICICI Pru NASDAQ 100 Index Fund - Direct Growth ₹ 100 ₹ 2,6220 36.06% Min SIP Investment Amt ₹ ₹ 100 AUM (Cr.) ₹ 2,622 3Y Return 36.06%

Motilal Oswal BSE Enhanced Value Index Fund-Dir Growth ₹ 500 ₹ 1,1810 34.98% Min SIP Investment Amt ₹ ₹ 500 AUM (Cr.) ₹ 1,181 3Y Return 34.98%

ICICI Pru Nifty Auto Index Fund - Direct Growth ₹ 1000 ₹ 1760 31.81% Min SIP Investment Amt ₹ ₹ 1000 AUM (Cr.) ₹ 176 3Y Return 31.81%

Aditya Birla SL Nifty Smallcap 50 IF - Dir Growth ₹ 100 ₹ 2580 27.63% Min SIP Investment Amt ₹ ₹ 100 AUM (Cr.) ₹ 258 3Y Return 27.63%

AXIS Nifty Smallcap 50 Index Fund - Dir Growth ₹ 100 ₹ 5510 27.56% Min SIP Investment Amt ₹ ₹ 100 AUM (Cr.) ₹ 551 3Y Return 27.56%

AXIS Nifty Midcap 50 Index Fund - Direct Growth ₹ 100 ₹ 5620 27.51% Min SIP Investment Amt ₹ ₹ 100 AUM (Cr.) ₹ 562 3Y Return 27.51%

Edelweiss Nifty Midcap150 Momentum 50 Index Fund-Dir Growth ₹ 100 ₹ 1,3650 26.59% Min SIP Investment Amt ₹ ₹ 100 AUM (Cr.) ₹ 1,365 3Y Return 26.59%

Motilal Oswal Nifty Midcap 150 Index Fund-Dir Growth ₹ 500 ₹ 2,9290 25.68% Min SIP Investment Amt ₹ ₹ 500 AUM (Cr.) ₹ 2,929 3Y Return 25.68%

Tata Nifty Midcap 150 Momentum 50 Index Fund-Dir Growth ₹ 150 ₹ 1,0600 25.63% Min SIP Investment Amt ₹ ₹ 150 AUM (Cr.) ₹ 1,060 3Y Return 25.63%

Aditya Birla SL Nifty Midcap 150 IF - Dir Growth ₹ 500 ₹ 4190 25.58% Min SIP Investment Amt ₹ ₹ 500 AUM (Cr.) ₹ 419 3Y Return 25.58%

Other Calculators

FAQs

Open Free Demat Account

ICICI Pru NASDAQ 100 Index Fund - Direct Growth

₹ 100

₹ 2,6220

36.06%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 2,622

3Y Return

36.06%

Motilal Oswal BSE Enhanced Value Index Fund-Dir Growth

₹ 500

₹ 1,1810

34.98%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 1,181

3Y Return

34.98%

ICICI Pru Nifty Auto Index Fund - Direct Growth

₹ 1000

₹ 1760

31.81%

Min SIP Investment Amt

₹ ₹ 1000

AUM (Cr.)

₹ 176

3Y Return

31.81%

Aditya Birla SL Nifty Smallcap 50 IF - Dir Growth

₹ 100

₹ 2580

27.63%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 258

3Y Return

27.63%

AXIS Nifty Smallcap 50 Index Fund - Dir Growth

₹ 100

₹ 5510

27.56%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 551

3Y Return

27.56%

AXIS Nifty Midcap 50 Index Fund - Direct Growth

₹ 100

₹ 5620

27.51%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 562

3Y Return

27.51%

Edelweiss Nifty Midcap150 Momentum 50 Index Fund-Dir Growth

₹ 100

₹ 1,3650

26.59%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 1,365

3Y Return

26.59%

Motilal Oswal Nifty Midcap 150 Index Fund-Dir Growth

₹ 500

₹ 2,9290

25.68%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 2,929

3Y Return

25.68%

Tata Nifty Midcap 150 Momentum 50 Index Fund-Dir Growth

₹ 150

₹ 1,0600

25.63%

Min SIP Investment Amt

₹ ₹ 150

AUM (Cr.)

₹ 1,060

3Y Return

25.63%

Aditya Birla SL Nifty Midcap 150 IF - Dir Growth

₹ 500

₹ 4190

25.58%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 419

3Y Return

25.58%