Top index funds with lowest tracking error

Top index funds with lowest tracking error

by 5paisa Research Team Last Updated: Nov 30, 2021, 02:05 PM IST

Expense ratio and tracking error are the two most important parameters for selecting index funds. Here is the list of top index funds having the lowest tracking error.

Index funds these days are gaining a lot of traction from investors. This can be very well attributed to the consistent underperformance of actively managed large-cap funds to their benchmark indices. As per the S&P Indices versus Active Funds (SPIVA) India scorecard for H1 FY22, 68.97%, 80%, 72.84% and 65.19% of the actively managed large-cap funds underperformed S&P BSE 100 in 1-year, 3-year, 5-year and 10-year period respectively.

Moreover, in the last one year, we have seen almost 162% growth in the assets under management (AUM) of index funds. Last year in November, there was a net outflow of Rs 222.58 crore in index funds, whereas in October 2021 we can see net inflows to the tune of Rs 3,514.21 crore. Said that, while investing in index funds, there are two most important parameters that investors need to check, which is tracking error and expense ratio.

Here is the list of the top 10 index funds with the lowest tracking error.

Name 

Expense Ratio (%) 

Tracking Error (%) 

AUM (in Rs Cr) 

NAV (Rs) 

Benchmark 

HDFC Index Fund – Sensex Plan 

0.20 

0.06 

2,800 

521.68 

S&P BSE Sensex TRI 

SBI Nifty Index Fund 

0.17 

0.10 

1,530 

152.29 

Nifty 50 TRI 

HDFC Index Fund-NIFTY 50 Plan 

0.20 

0.10 

4,100 

159.41 

Nifty 50 TRI 

UTI Nifty Index Fund 

0.20 

0.11 

5,380 

114.46 

Nifty 50 TRI 

Nippon India Index Fund – Sensex Plan 

0.15 

0.12 

202 

29.63 

S&P BSE Sensex TRI 

DSP Nifty 50 Index Fund 

0.21 

0.13 

122 

15.36 

Nifty 50 TRI 

ICICI Prudential Nifty Next 50 Index Fund 

0.30 

0.13 

1,660 

38.59 

Nifty Next 50 TRI 

ICICI Prudential Nifty Index Fund 

0.17 

0.14 

2,250 

172.33 

Nifty 50 TRI 

IDFC Nifty Fund 

0.16 

0.15 

357 

36.30 

Nifty 50 TRI 

LIC MF Index Fund – Sensex Plan 

0.60 

0.15 

45 

111.01 

S&P BSE Sensex TRI 

 

SENSEX
54,318.47
1,344.63 (2.54%)
Nifty 50
16,259.30
417.00 (2.63%)
Nifty Bank
34,301.90
704.30 (2.10%)
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SENSEX
54,318.47
1,344.63 (2.54%)
Nifty 50
16,259.30
417.00 (2.63%)
Nifty Bank
34,301.90
704.30 (2.10%)

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