Best Index Funds in India To Invest in 2022





Last Updated on Aug 19, 2022, by Manish Thole

Index funds are mutual funds, or Exchange-Traded Fund (ETF) with a portfolio curated to match or track the benchmark index, such as the Nifty 50. They follow a passive investing style, meaning they aim to maximize returns over the long run by not transacting often. Index funds are subject to the same risk as the securities in the index it tracks. Let’s explore the best index funds in India in 2022.

Best index funds in India 2022

The following best index mutual funds are picked based on the following parameters:

  • Plan: Growth
  • AUM: Set to 1,500.00 to 57,832.00
  • Tracking Error: Sort from Low to High

Note: The data presented here is of 19th August 2022.

Name of the index fundAUM (Rs. in cr.)CAGR 3Y (%)Expense Ratio (%)Tracking Error (%)
SBI Nifty Index Fund2,416.9318.310.180.03
UTI Nifty 50 Index Fund7,941.0518.590.210.03
HDFC Index Fund-S&P BSE Sensex3,390.3918.180.200.04
HDFC Index Fund-NIFTY 50 Plan5,940.6018.440.200.05
UTI Nifty Next 50 Index Fund1,863.9219.270.330.08
ICICI Pru Nifty Next 50 Index Fund2,332.4818.50.300.08
ICICI Pru Nifty 50 Index Fund3,417.9518.340.180.08
UTI Nifty200 Momentum 30 Index Fund1,711.3100.420.29

Details about the top index mutual funds

SBI Nifty Index Fund

The fund invests in stocks comprising the Nifty 50 Index in the same proportion as their weightage in the index. It requires a minimum investment of Rs. 5,000. The fund holds an AUM of Rs. 2,416.93 cr., and the current NAV is Rs. 162.18.

UTI Nifty 50 Index Fund

Among all the funds mentioned in this list, this fund holds the highest AUM of Rs. 7,941.05 cr. It was launched on 6th March 2000. The current NAV of the fund is Rs. 121.98, the lowest on the list. The minimum investment required to invest in this fund is higher, which is Rs. 5,000.

HDFC Index Fund-S&P BSE Sensex

This fund was launched on 1 January 2013 and holds an AUM of Rs. 3,390.39. The minimum investment required to invest in this fund is similar to UTI Nifty Next 50 Index Fund and HDFC Index Fund-Nifty 50 Plan, which is Rs. 5,000. The current NAV of the fund is Rs. 555.89.

HDFC Index Fund-NIFTY 50 Plan

The AUM of this fund is Rs. 5,940.60 cr. It was launched on 17 July 2002. The fund has a NAV of Rs. 161.69. The minimum investment required to invest in this fund is similar to UTI Nifty Next 50 Index Fund, which is Rs. 5,000. You can also invest via SIP of Rs. 300.

UTI Nifty Next 50 Index Fund

The AUM of this fund is Rs. 1,863.92 cr., and the current NAV of the fund is Rs. 15.83. This fund was launched on 8th June 2018. It has a higher minimum investment amount than other index funds, which is Rs. 5,000. 

ICICI Pru Nifty Next 50 Index Fund

The current AUM of the fund is Rs. 2,332.48 cr., and the NAV of the fund is Rs. 39.47. The minimum investment required for this fund is Rs. 100. It allows the Systematic Investment Plan (SIP) of daily, weekly, fortnightly, and monthly frequency of Rs. 100.

ICICI Pru Nifty 50 Index Fund

It is a large-cap mutual fund scheme by ICICI Prudential Mutal Fund. The AUM of the fund is Rs. 3,417.95 cr. The current NAV of the fund is Rs. 183.51. The minimum investment required for this fund is Rs. 100.

UTI Nifty200 Momentum 30 Index Fund

The fund has Assets Under Management (AUM) of Rs. 1,711.31 cr. As mentioned in the above table, the CAGR of the fund is zero because the fund was launched on 10th March 2021. The current NAV of the fund is Rs. 13.04. The minimum investment required is set to Rs. 500.

To conclude

Index funds track a market index. Hence, the returns are approximately similar to the ones offered by the index. Consequently, investors preferring predictable returns and interested in the equity market usually invest in this fund. To filter index funds based on different parameters, use Tickertape’s Mutual Fund Screener, loaded with over 50 filters.

FAQs

1. What is a tracking error in the index mutual funds?

Tracking error is one of the most important measures used to assess the performance of a portfolio. It determines the difference between the return fluctuations of an investment portfolio and the chosen benchmark. The fluctuations are measured by standard deviation.

The lower the tracking error, the closer the manager follows the benchmark. The higher the tracking error, the more the manager deviates from the benchmark.

2. How many types of index funds are available?

There are eight types of index mutual funds, namely, 
– Broad market index funds
– Market capitalization index funds
– Equal weight index funds
– Factor-based index funds
– Sector-based index funds
– International index funds
– Debt index funds
– Custom index funds

3. Is an index fund a passive investment?

An index fund doesn’t need active management since it is based on the performance of a market index. Hence, they are known as passive investments. This factor sets them apart from other mutual funds. 


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