Top 10 Index Funds.

Top 10 Index Funds.

by 5paisa Research Team Last Updated: Dec 09, 2022 - 09:20 am 51.2k Views
Listen icon

Passively managed funds such as Index funds are gaining momentum. Read on to find the detail about index funds that track the frontline equity index, Nifty 50.

Investors who are not well versed with equity investment, however, want to benefit from the equity investment can opt for index funds. According to data from the Association of Mutual Funds in India (AMFI), Asset under management (AUM) surged almost three times during in last year. AUM at the end of September 2021 stood at Rs 33824 crore against Rs 12581 crore the same month last year. Although most of the investment comes in schemes that replicate indices such as Nifty 50 and S&P BSE Sensex, others are also gaining ground now. So you will find index funds imitating mid-cap and small-cap indices also.

Given this popularity, Navi AMC recently launched the cheapest Nifty 50 index fund that has an expense ratio of 6 basis points. Besides expense ratio what is also important before selecting an index fund is tracking error. Tracking error is the difference in actual performance between the fund and its corresponding benchmark. So even if the index fund has a very low expense ratio, and a higher tracking error, it may not solve the purpose of investing in index funds. Hence, it is important to look at both expense ratio and tracking error before committing your fund to an index fund.

Below table shows the index funds that track Nifty 50 and is sorted based on tracking error.

This is the table code -

Name  

Expense Ratio  

Tracking Error  

AUM in Cr  

NAV (Rs)  

SBI Nifty Index Fund  

0.17%  

0.10%  

1530  

160.28  

HDFC Index Fund-NIFTY 50 Plan  

0.20%  

0.10%  

4000  

167.79  

UTI Nifty Index Fund  

0.20%  

0.11%  

5216  

120.46  

DSP Nifty 50 Index Fund  

0.21%  

0.13%  

122  

16.3  

ICICI Prudential Nifty Index Fund  

0.17%  

0.14%  

2160  

181.37  

IDFC Nifty Fund  

0.16%  

0.15%  

357  

38.22  

L&T Nifty 50 Index Fund  

0.25%  

0.16%  

80  

20.28  

Aditya Birla Sun Life Index Fund  

0.34%  

0.18%  

257  

179.19  

LIC MF Index Fund – Nifty Plan  

0.49%  

0.18%  

50  

103.22  

Nippon India Index Fund – Nifty Plan  

0.20%  

0.20%  

420  

31.59  

Franklin India Index Fund – NSE Nifty Plan  

0.26%  

0.20%  

458  

146.78  

Tata Index Fund – Nifty Plan  

0.19%  

0.21%  

200  

116.68  

Motilal Oswal Nifty 50 Index Fund  

0.10%  

0.30%  

105  

14.91  

IDBI Nifty Index Fund  

0.16%  

0.67%  

220  

35.38  

Kotak Nifty 50 Index Fund  

0.20%  

0.67%  

91  

11.4  

The above table shows that though, Motilal Oswal Nifty 50 Index Fund has the lowest expense ratio, it has a higher tracking error. Hence, the best combination is the fund that has lower expense and tracking error.

Share Market Today


How do you rate this article?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

378X91-D3

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
Trust Fintech IPO Subscribed 108.63 times

Trust Fintech IPO is book-built issue of ₹63.45 crores, consisting entirely of fresh issue shares totalling 62.82 lakh. Trust Fintech IPO commenced its subscription period on March 26, 2024, & concludes today, March 28, 2024.

Aspire & Innovative IPO Subscribed 15.17 times

Aspire & Innovative IPO is a book built issue of Rs 21.97 crores. The issue comprises entirely a fresh issue of 40.68 lakh shares. Aspire & Innovative IPO opens for subscription on March 26, 2024, and closes on March 28, 2024. The allotment for the Aspire & Innovative IPO is expected to be finalized on Monday, April 1, 2024.

Blue Pebble IPO Subscribed 56.32 times

Blue Pebble IPO, valued at ₹18.14 crores, comprises fresh issue of 10.8 lakh shares. Commencing subscription on March 26, 2024, Blue Pebble IPO is set to conclude on March 28, 2024. Allotment process is scheduled to be finalized by Monday, April 1, 2024. Following this, IPO is slated to debut on NSE SME, with tentative listing date of Wednesday, April 3, 2024.