The HDFC Index Fund Nifty 50 Plan Direct-Growth is an HDFC Mutual Fund Large Cap mutual fund plan. Since its inception on January 1, 2013, this fund has been around for nine years. As of December 31, 2021, HDFC Index Fund Nifty 50 Plan Direct-Growth had a total AUM of 4,434 crores, making it a medium-sized fund in its category. The below table shows the best-performing index funds in India as of 17th Jan 2022. Data includes NAV , Expense Ratio, 3Y & 5Y CAGR, and Minimum Investment required to start these index mutual funds. Index category and risk appetite – Although many indices on the Indian stock exchanges exist, index funds are available only for some of these.

Warren Buffett considers index funds as a haven for savings for retirement plans. Investing in Index funds is aimed to match the performance of the capital market rather than beat it. Index fund investing is usually passive investing for the long term. Index Funds provide diversification by investing across many stocks. The investment objective is to generate long term capital appreciation by investing in securities of MSCI EAFE Top 100 Select Index subject to tracking error. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.

Our services are non-advised however, we may facilitate providing you with required advice through eligible third-party providers. We recommend that the same must be reviewed independently by the customers. Using the stock lending mechanism to lend out shares and earn some fees. This may be tiny, but it will help reduce the difference.

Is there some way that I can select the best Index fund?

The fund tries to generate capital gains in the long run for its investors. Alongside, it tries to provide consistent returns by investing a part of the fund in money market instruments and bonds. The fund is 90% invested in equities and 10% in other instruments. Within equities, the sectoral weights are more towards engineering (22%), FMCG (10%) and Automobile companies (10%). A Fund of Funds is an investment fund that does not directly invest in financialsecuritiesbut invests in other investment funds, such as MFs,ETFs, and private equity funds. FoF pools investors’ money, which is then actively managed by a portfolio manager.

Which index fund is best in 2022?

  • IDFC Nifty 50 Index Fund.
  • Tata S&P BSE Sensex Index Fund.
  • ICICI Prudential Nifty Direct Plan-Growth.
  • HDFC Nifty 50 Plan Direct-Growth.
  • SBI Nifty Index Direct Plan-Growth.
  • Aditya Birla Sun Life Nifty 50 Direct-Growth.
  • Axis Nifty 100 Index Fund Direct-Growth.
  • Tata Index Nifty Direct.

The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article. Want to put your savings into action and kick-start your investment journey 💸 But don’t have time to do research? Invest now with Navi Nifty 50 Index Fund, sit back, and earn from the top 50 companies.

How to Invest in the Best Index Funds?

These funds help investors in getting exposure to a broader market segment at a lesser cost. Index funds have a low expense ratio compared to other mutual Saturation Thermodynamic funds owing to the passive investing strategy. Thus, if you’re seeking low-cost investment options, index mutual funds can be an option worth considering.

  • This feeder fund, or fund of fund, invests in Franklin US Opportunities Fund.
  • Index Funds are passive Mutual Funds that seek to create wealth for investors by replicating the performance of an index.
  • Franklin India Feeder Fund is weighted 40% towards the IT sector and 18% of the healthcare sector, which are dominant themes right now.

In an actively managed Mutual Fund, you invest your money in a scheme and then an expert called the Fund Manager uses his or her expertise to build a portfolio of securities. The fund manager and his/her team take tactical calls including which stocks to buy or sell and at what price. This style of investing often involves multiple buy and sell transactions, so, is called active investing, and schemes implementing this strategy are called actively managed mutual funds. This basically means making the investment through a broker or distributor. If opting for this mode, the investments are made through regular plans which have different returns and expense ratio. Alternatively, investors may invest by filling an application form for the desired scheme and submitting to the authorized collection centre of the mutual fund.

List of Best Index Funds in India Ranked by Last 5 Year Returns

Getting started with index mutual funds investment is pretty basic with Alice Blue. For most of the investors, if your investment horizon is long-term, you can invest anytime. However there is no set methodology to follow for making the investment.

How do I find a good index fund?

Your index fund should mirror the performance of the underlying index. To check, look at the index fund's returns on the mutual fund quote page. It shows the index fund's returns during several time periods, compared with the performance of the benchmark index. Don't panic if the returns aren't identical.

The principal investment objective of the scheme is to invest in stocks of companies comprising Nifty 50 Index and endeavour to achieve return equivalent to Nifty 50 by “passive” investment. The scheme would alter the scrips/weights as and when the same are altered in the Nifty 50 Index. Since an average Indian investor can not track the international markets on a continued basis.

Expense Ratio

Low-cost passive funds such as Nasdaq FoF and S&P 500 Index Fund have always delivered double-digit returns in the past and provided diversification benefits along with Rupee-cost benefits. Since active funds require human intervention in the form of fund managers, a certain amount of your investment goes toward the fund manager’s fee. However, for index mutual funds, the expense ratio is much lower as such funds simply replicate the index and don’t require any manual intervention when it comes to the selection of stocks. Thus, the cost of managing an Index Fund is significantly lower than that of an actively managed Equity Mutual Fund.

Do index funds have fees?

Ans: Yes. However, the fee is much lesser compared to actively managed funds where the expense ratio is higher.

With an expense ratio of 0.27%, the fund is in the same ballpark as most other large-cap mutual funds. The Tata Index Sensex Direct has returned 19.56% in the past year. It has returned an average of 13.64% every year since its inception. Every two years, the fund has returned twice the amount invested. Index funds are mutual funds, or Exchange-Traded Funds , with a portfolio, curated to match or track the benchmark index, such as Nifty 50. They follow a passive investing style, meaning they aim to maximize returns over the long run by not transacting often.

Select the fund of choice

Plus, when you do sell, there will still be a premium to the NAV in the market price, so that may even things out. ETFs require physical action – go to the broker and buy every month, or such, so they are a little more painful to implement. Our suggestion is that if you have the time to buy ETFs, use that as a mechanism, but if it’s too painful or needs more time that you can give, then use index funds.

best index funds 2021

Best Index Funds – Consider the best performing index mutual funds to invest in 2022 with Find the list of best index funds in India on the basis of Returns, Latest Nav, Ratings, Performance, etc. Passive Mutual Funds are those in which the fund manager is not actively involved.

Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs. When you invest in mutual funds, the sole chance you cannot avoid is the market risk. It would be best to control your risk by correctly allocating assets between equity and debt. When choosing the most suitable mutual fund, the main goal is to ensure that the funds returns have exceeded the Index returns.

best index funds 2021

In index funds, the manager just needs to replicate the index. Therefore, the expense ratio is lower in case of index funds. In the case of an Index Fund, the fund manager only replicates the index that is being tracked, so, there is no bias with respect to stock selection in this case. For example, an Index Fund tracking the NIFTY Next 50 Index will only invest in the 50 stocks that comprise the Next 50 Index. Moreover, the individual weight of each stock in the Index mutual Fund will be the exact same as their proportion in the NIFTY Next 50 Index. As the fund manager does not have to select and invest in stocks by himself/herself or have to time entry and exit into individual stocks, there is no risk of personal bias.