Index Funds are mutual funds that invest in a specific index. In terms of portfolios, their primary goal is to replicate a stock market index. An index fund invests in the same stocks and at the same weightage as the underlying index. Listed further are a few of India's Best Index Funds with the highest AUMs.
This is strictly for informational purposes. This is not a recommendation to consider the highest AUMs before investing. Before investing, please consider your risk tolerance and investment objectives.
Index Funds are intended to replicate the performance of a specific stock index. When I say "imitating," I mean both the index's holdings and the weightage of each stock. Even the best index funds must adhere to this standard.
A Nifty index fund, for example, will invest 10% of its money in Reliance Industries if the Nifty has given RIL 10% of its weightage. Similarly, stock market indices rebalance their portfolios on a regular basis throughout the year. Such changes must be followed by index funds. An Index Fund manager is expected to keep track of any changes in the weightage or stock list.
In this blog, we have composed a list of the Best Index Mutual Funds.
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Motilal Oswal S&P BSE Low Volatility Index Fund Direct-Growth |
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Index Funds are a type of Passive Mutual Funds. Passive Mutual Funds are those in which the fund manager is not actively involved. Index Fund managers, as previously stated, attempt to replicate the performance of an index but here they have no say over which stocks enter and exit the fund, or how much of the fund's money is invested in which stock.
Index Fund managers do not seek to outperform the alpha, which is a stock market jargon for outperforming the benchmark. The fund manager attempts to imitate it here. As a result, in most cases, the return is close to or slightly lower than the Index Return, due to the fund's charges. As a result, the majority of the Top Index funds in India will have returns that are nearly identical to the benchmark index they are tracking.
UTI Nifty Next 50 Index Fund Direct-Growth is an "Other" Mutual Fund Scheme launched by UTI Mutual Fund and is considered as the Best Nifty Index Fund in India. The scheme seeks to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error.
Axis Nifty Next 50 Index Fund Direct-Growth is an "Other" Mutual Fund Scheme launched by Axis Mutual Fund and is a Top Nifty 50 Index Fund of India. The scheme seeks to provide returns before expenses that closely correspond to the total returns of the Nifty 50 Index Fund subject to tracking errors.
Motilal Oswal S&P BSE Low Volatility Index Fund Direct-Growth is an "Other" Mutual Fund Scheme launched by Motilal Oswal Mutual Fund. The investment objective of the scheme is to provide returns that, before expenses, correspond to the total returns of the securities as represented by the S&P BSE Low Volatility Total Return Index, subject to tracking error.
Nippon India Nifty SmallCap 250 Index Fund Direct-Growth is an "Other" Mutual Fund Scheme launched by Nippon India Mutual Fund. The scheme seeks to provide investment returns closely corresponding to the total returns of the securities as represented by the Nifty SmallCap 250 Index before expenses, subject to tracking errors.
IDFC Gilt 2028 Index Fund Direct-Growth is an "Other" Mutual Fund Scheme launched by IDFC Mutual Fund. The scheme seeks to provide investment returns closely corresponding to the total returns of the securities as represented by the CRISIL Gilt 2028 Index before expenses, subject to tracking errors.
This was the list of the Best Index Funds India in 2023. Index Funds are passive Mutual Funds that seek to create wealth for investors by replicating the performance of an index. Because of this, index funds may be less risky than active funds. These funds assist in balancing your portfolio across the risk spectrum.
Despite the fact that index funds map a specific index, one should not invest blindly in one of the best index funds. Conduct your research to determine whether these funds are a good fit for your portfolio and how much you should invest in them.