Index Mutual Funds imitate the benchmark indices not just comprising the same securities but also in the same proportion. They track the composition of standard benchmark indices such as Nifty 50 or Sensex and are passively managed – without any intervention from the fund manager.

This also means that Index Mutual Funds will perform in line with the benchmark index it’s tracking, replicating the returns at a minimal cost. Given that these funds are passively managed, it also reduces the expense ratio and other fees making them a cost efficient option.

We have a list of the Top 10 Index Mutual Funds currently available in the market. They are:-

#1 Index Mutual Fund: IDFC Nifty Fund – Direct – Growth

IDFC Nifty Fund

IDFC Nifty Fund’s main objective is to replicate the Nifty 50 by investing in securities of Nifty 50 in the same proportion / weightage. The catch is that there is no assurance or guarantee that the objectives of the scheme will be realized and the scheme does not assure or guarantee any returns.

Launched on 30th April 2010, the fund has an asset size of 170.57 crores and offers you moderately high risks. Over 60% of the fund’s investments are in Finance, technology and energy. It is an open ended fund along with an expense ratio of 0.27% as of 31 May 2019. 

Minimum SIP amount: Rs. 100

Fund manager: Arpit Kapoor, Sumit Agarwal

Exit Load: 0%

            Fund Name1 year3 Year5 Year
         IDFC Nifty Fund7.54%11.78%9.74%

#2 Index Mutual Fund: Aditya Birla Sun Life Index Fund – Direct- Growth

Aditya Birla SunLife Index Fund

Aditya Birla Sun Life Index Fund’s main objective is to generate returns that are commensurate with the performance of the Nifty, subject to tracking errors. Over 60% of the fund’s investments are in Finance, technology and other cash equivalents.

The expense ratio is 0.8% as declared on 31 May, 2019. The scheme is open ended and offers you moderately high risks. The asset size is 144 crores.

Minimum SIP amount: Rs. 1,000

Fund manager: Ajay Garg      

Exit Load: 0%

            Fund Name1 year3 Year5 Year
Aditya Birla Sun Life Index Fund6.54%10.71%8.90%

#3 Index Mutual Fund: Franklin India Index Fund – NSE Nifty Plan – Direct- Growth

Franklin India Index Fund

Franklin India Index Fund NSE Nifty plan is an open-ended passive index fund with an objective of investing in companies whose securities are included in Nifty, attain results commensurate with the S&P CNX Nifty.

Launched in August 2000, the fund is an open ended scheme and offers you a moderately high amount of risk. Over 50% of the fund’s investments are in Finance, Technology and energy. Currently, it has an expense ratio of 1%.

Minimum SIP amount: Rs. 500

Fund manager: Varun Sharma, Srikesh Nair

Exit Load: 1% if redeemed within 30 days

            Fund Name1 year3 Year5 Year
   Franklin India Index Fund6.61%10.79%8.95%

#4 Index Mutual Fund: HDFC Index Fund – Sensex Plan – Direct- Growth

HDFC Index Fund Sensex Plan

HDFC Index Fund – Sensex Plan’s main objective is to generate returns that are in correspondence with the performance of SENSEX. This Fund has 99.46% investment in Indian stocks out of which, 99.36% is in large cap stocks and 0.1% is in mid cap stocks.

It is an open ended fund that offers you moderately high risks. The expense ratio was declared 0.3% on 31 January 2019 while the asset size of this fund is 433.36 crores.

Minimum SIP amount: Rs. 500

Fund manager: Krishan Daga

Exit Load: 0.25% if redeemed before 3 days

            Fund Name1 year3 Year5 Year
HDFC Index Fund – Sensex Plan7.10%12.64%10.05%

#5 Index Mutual Fund: HDFC Index Fund Nifty 50 Plan – Direct – Growth

HDFC Index Fund Nifty 50 Plan

HDFC Index Fund Nifty 50 Plan’s (Erstwhile HDFC Index Nifty) main objective is to generate returns that are commensurate with the performance of the NIFTY 50 Index, subject to tracking errors. Over 60% of the fund’s investments are in Finance, technology and energy.

The expense ratio of the fund is 0.3% as declared on 31st May 2019 while the category average is 0.46%. It is an open ended scheme that offers you moderately high risks. The asset size of the fund is 804.6 crores.

Minimum SIP amount: Rs. 500

Fund manager: Krishan Daga

Exit Load: 0.25% if redeemed before 3 days

Fund Name

1 year3 Year5 Year
HDFC Index Fund NIFTY 50 Plan5.96%11.58%9.90%

#6 Index Mutual Fund: ICICI Prudential Nifty Index Fund – Direct – Growth

ICICI Prudential Nifty Index Fund

ICICI Prudential Nifty Index Fund’s main objective is to track the returns of S & P Nifty index through investment in stocks drawn from constituents of Nifty. Over 50% of the fund’s investments are in Consumer Defensive, Finance and consumer cyclicals.

The expense ratio for the fund as declared on 31 May, 2019 is 0.45% while the category average is 0.46%. The asset size of the fund is 375.15 crores. It offers you a moderately high amount of risk and is an open ended scheme.

Minimum SIP amount: Rs. 100

Fund manager: Kayzad Eghlim

Exit Load: 0%

            Fund Name1 year3 Year5 Year
ICICI Prudential Nifty Index Fund5.42%10.91%9.34%

#7 Index Mutual Fund: Reliance Index Fund – Nifty Plan – Direct – Growth

Reliance Index Fund Nifty Plan

Reliance Index Fund Nifty plan’s main objective is to replicate the composition of Nifty, with a view to generate returns that are commensurate with the performance of Nifty, subject to tracking errors. 

The fund has 99.43% investment in Indian stocks out of which 99.43% is in large cap stocks. The fund was launched on 28th September, 2010 and is an open ended fund scheme. It offers you moderately high risks along with an expense ratio of 0.62%. The asset size of this fund is 146.99 crores.

Minimum SIP amount: Rs.100

Fund manager: Mehul Dama

Exit Load: 0.25% if redeemed before 7 days

            Fund Name1 year3 Year5 Year
Reliance Index Fund Nifty plan5.28%10.67%9.09%

#8 Index Mutual Fund: SBI Nifty Index Fund – Direct – Growth

SBI Nifty Index Fund

Launched on 11th January 2002, SBI Nifty Index Fund’s main idea is to adopt a passive investment strategy. The scheme will invest in stocks comprising the S&P CNX Nifty index that too in the same proportion. The objective is to achieve returns equivalent to the Total Returns Index of S&P CNX Nifty index, by minimizing the performance difference between the benchmark index and the scheme.

It’s an open ended fund with an asset size of 432.71 crores. The fund has moderately high risks and over 60% of the fund’s investments are in Finance, energy and technology.   

Minimum SIP amount: Rs.500

Fund manager: Raviprakash Sharma

Exit Load: 0%

            Fund Name1 year3 Year5 Year
SBI Nifty Index Fund5.58%11.15%9.23%

#9 Index Mutual Fund: UTI Nifty Index Fund – Direct – Growth

UTI Nifty Index Fund

UTI Nifty Index Fund is an open-ended passive fund with the objective to invest in securities of companies of the S&P CNX Nifty in the same weightage as they have in S&P CNX Nifty. The Fund has again over 60% investments in the fields of Finance, energy and technology.

Launched on 28th March 2000, the asset size of the fund is 1407.86 crores. It is an open ended scheme and offers you an expense ratio 0.1% as of 31 May,2019 along with a moderately high risk.

Minimum SIP amount: Rs. 500

Fund manager: Sharwan Kumar Goyal

Exit Load: 0%

            Fund Name1 year3 Year5 Year
UTI Nifty Index Fund5.86%11.62%9.90%

These are our top 10 picks for the best Index Mutual Funds to invest in this season. These Funds are your safest bet for investing right now and enjoying your financial freedom.

Happy Investing folks!

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