Nifty 50 index funds are a type of passively-managed equity funds that track the performance of the Nifty 50 index. The Nifty 50 index comprises top 50 Indian companies (based on total market capitalisation, typically above ₹20,000 crore) listed on the NSE (National Stock Exchange). Since these funds follow a passive investment strategy, they usually have a lower expense ratio allowing investors to maximise returns margin in the long term.
Check out our list of 20 best Nifty 50 index funds 2023 along with their details and select the scheme that fits your investment goal.
Check out the list of 20 best nifty 50 Index funds 2023 (data updated on February 28, 2023)
|Navi Nifty 50 Index Fund Direct Growth
AUM: ₹663.07 Crore
Expense Ratio: 0.06%
|ICICI Prudential Nifty 50 Index Direct Plan Growth
Expense Ratio: 0.17%
|UTI Nifty 50 Index Fund-Growth Option- Direct
AUM: ₹9475.27 Crore
Expense Ratio: 0.2%
|HDFC Index Fund Nifty 50 Plan-Direct Plan
Expense Ratio: 0.18%
|SBI Nifty Index Fund Direct Growth
AUM: ₹3324.543 Crore
Expense Ratio: 0.18%
|Motilal Oswal Nifty 50 Index Fund Direct-Growth
AUM: ₹234.01 Crore
Expense Ratio: 0.14%
|Nippon India Index Fund – Nifty 50 Plan – Direct Plan – Growth Plan
AUM: ₹638.77 Crore
Expense Ratio: 0.2%
|Bandhan Nifty 50 Index Fund Direct Plan Growth
Expense Ratio: 0.1%
|DSP Nifty 50 Index Fund Direct Growth
Expense Ratio: 0.24%
|Kotak Nifty 50 Index Fund Direct Growth
AUM: ₹260.35 Crore
Expense Ratio: 0.18%
|LIC MF Nifty 50 Index Fund Direct Growth
AUM: ₹53.62 Crore
Expense Ratio: 0.2%
|Aditya Birla Sun Life Nifty 50 Index Fund Direct Growth
AUM: ₹512.22 Crore
Expense Ratio: 0.32%
|Franklin India NSE Nifty 50 Index Fund Direct Growth
AUM: ₹494.36 Crore
Expense Ratio: 0.32%
|Taurus Nifty 50 Index Fund Direct Growth
AUM: ₹482.31 Crore
Expense Ratio: 0.44%
|Tata Nifty 50 Index Fund
AUM: ₹369.33 Crore
Expense Ratio: 0.52
|HSBC Nifty 50 Index Fund
AUM: ₹141.73 Crore
Expense Ratio: 0.2%
|IDBI Nifty Index Fund
Expense Ratio: 0.9%
|Axis Nifty 50 Index Fund
Expense Ratio: 0.12
|Edweiss Nifty 50 Index Fund
AUM: ₹11.84 Crore
Expense Ratio: 0.17%
|DSP Nifty 50 Equal Weight Index Fund
Expense Ratio: 0.4%
A team of professionals at NSE Indices manage the Nifty share index. An Index Advisory Committee offers expertise and guidance on several major issues related to equity indices.
Nifty 50 is a group of 50 important stocks in India. The value of the Nifty 50 index shows the total worth of all the stocks in the group. The starting point for NIFTY 50 is November 3rd, 1995, and at that time, the base value of the index was 1000, and the base capital was 2.06 trillion rupees. The value of the Nifty 50 changes based on how the stock prices of the companies in the group change.
The price index is calculated with the formula given below:
Index value = Current market value / (Base Market Capital * 1000)
The calculation of price index value also takes into consideration the changes in corporate activities. It includes stock splits, right issuance, and more.
The table below represent Nifty 50 sectors and their respective weightage:
|Oil, Gas & Consumable Fuels
|Fast Moving Consumer Goods
|Automobile and Auto Components
|Metals and Mining
Let us analyse the performance of the best-performing nifty 50 index funds in detail:
Started on 15th July 2021, this index fund has shown excellent returns since its inception as it is regarded as one of the lowest-cost funds in its category. It is considered among the top 20 Nifty 50 index funds. The fund gives exposure to leading companies in the financial services, information technology, oil, gas and consumable fuels among a total of 14 sectors. The top 3 holdings in this fund include Reliance Industries, HDFC Bank and ICICI Bank.
This large-cap mutual fund invests in the technology, financial, energy, consumer staples, and automobile sectors. It provides an excellent platform for investors to earn good returns. The top holdings in this fund include Reliance Industries, HDFC Bank and ICICI Bank.
This fund was started on 1st January 2013 and ranks among the top Nifty 50 best index funds. It holds securities of companies in the financial, tech, and energy sectors, among others. Some of its major investments are in Reliance Industries, HDFC, and HDFC Bank.
This fund allows investors to put their money in the consumer staples, automobile, tech, and financial sectors. It currently holds stocks of companies including Reliance, Infosys, HDFC, ICICI Bank.
This fund was started on 1st January 2013 and majorly has stocks of companies of the finance and tech sectors. It also provides some exposure into the health, energy, and communication sectors. Major holdings in this fund include Reliance Industries, HDFC Bank, and ICICI Bank.
This fund was started on 23rd December 2019 and since its inception, it has found a place in the top nifty 50 mutual fund list. It holds stocks of companies in the financial sector, as well as the energy, tech, and consumer staples sectors. Some of its top holdings include Reliance Industries, HDFC Bank and ICICI Bank.
This fund gives its investors exposure mainly into the financial, technology, and energy sectors. Its top holdings include Reliance Industries, HDFC Bank and ICICI Bank.
This equity fund was launched on 1st January 2013 and has shown consistently good returns since. With a major exposure into the financial, technology, and energy sectors, it invests into the stocks of companies like Reliance Industries and HDFC Bank. Today, it is considered as one of the best Nifty 50 funds.
This fund came into existence on 21st February 2019 and has shown an excellent performance ever since. Its major holdings are in Reliance Industries, HDFC Bank, ICICI Bank, and Infosys, along with other leading companies across 14 sectors.
This fund was inaugurated on 21st June 2021. It has shown good performance as compared to its peers in the same category and has excellent potential for providing high returns. Its top holdings include Reliance Industries, Infosys, and HDFC.
IDBI Nifty Index Fund is an open-ended equity scheme that tracks the Nifty 50 index. The fund is suitable for investors seeking long-term growth and for those who want to start investing in equity schemes.
This index fund invests 100% of its assets in equity holdings. The fund is suitable for investors looking to invest in pure equity at a lower risk compared to mid-cap and small-cap funds.
This open-ended index fund scheme gives investors an opportunity to capture the growth of top Indian company stocks at a lower cost. It is suitable for investors having moderate to high-risk appetite.
This index fund invests in the same companies and in the same weightages that currently make up the NIFTY 50 Index. This scheme could be an ideal investment option for first time equity investors who would like to benefit from the growth opportunities of investing in equities through a diversified portfolio.
This index fund replicates the Nifty 50 index in a bid to offer returns that closely match the performance of the index. The scheme is suitable for investors looking for long-term capital growth.
Tata Index Fund is a passively managed fund; The fund aims to provide returns that closely correspond to the returns of the SENSEX/NIFTY. It is suitable for investors who are looking for long term capital.
The goal of the scheme is to achieve returns comparable to the Total Returns Index of the Nifty 50 index by reducing the performance gap between the benchmark index and the scheme. The scheme will invest in the same proportion of companies as the Nifty 50 index.
By investing in this fund, an investor gains exposure to the performance of the top 50 companies in India, which includes companies from various sectors such as finance, energy, healthcare, and technology.
By investing in this fund, investors can gain exposure to the performance of the top 50 companies in India, which have been selected based on various parameters like liquidity, market capitalization, and other factors.
The fund is managed by DSP Investment Managers Private Limited, one of the leading asset management companies in India. By investing in this fund, investors can gain exposure to the performance of the top 50 companies in India, with each company carrying the same weightage in the fund’s portfolio.
Data taken from respective AMC websites on 31st March, 2023. For illustrative purposes only. Past returns offer no guarantee of future results.
Mutual Funds are subject to market risks, read all the offer documents carefully.
You can directly invest in the top Nifty fifty index funds through AMC’s (Asset Management Company) website or a mobile app.
Visit the official website of the AMC
Fill in the required details
Provide your Aadhaar card and PAN card details and complete the e-KYC.
Step 1: Download the respective mobile application
Step 2: Provide your contact details to register
Step 3: Complete the e-KYC process
Once your application is verified and approved, you can start investing in the best nifty 50 mutual funds.
Alternatively, you can also invest in Nifty 50 index funds offline – here’s the step-by-step process:
Step 1: Contact a representative of the fund house or an empaneled distributor.
Step 2: Procure application and KYC form (if KYC procedure not completed) from the fund house’s website.
Step 3: Fill the application/KYC (if applicable) form, provide necessary information i.e. name, address, PAN, email address, mobile number, etc. This email address and mobile number will be used for further communication, and can also be used to register for online transaction services.
Step 4: Attach copies of relevant documents and submit them along with a cheque or demand draft of the desired investment amount.
Step 5: Submit duly signed application/KYC (if applicable) form(s), with the cheque and all relevant documents, to any branch of the fund house or point of acceptance.
Step 6: The fund house will then allocate and provide you a folio number for that particular investment. You will also receive an Account Statement, after the transaction is processed.
However, offline application could be extremely time consuming. The better alternative is to invest online.
Investing in Nifty 50 index mutual fund is ideal for:
Nifty 50 index funds offer a simple and cost-effective way for beginner mutual fund investors who seek to gain exposure to equities without having to actively manage their portfolio.
The true potential of Nifty 50 index funds is realised if you stay invested for the long-term. These funds are best suited for individuals who have a long-term investment horizon and are looking to build wealth over time.
Nifty 50 index funds mirror the performance of the Nifty 50 index, which comprises top 50 companies of India based on market cap. Since these companies are well-established, their stocks are usually less-prone to market volatility.
Nifty50 index funds are passively-managed, meaning little cost goes towards fund management. This significantly reduces the expense ratio, which in turn reduces the overall cost of the fund. This makes these funds a low-cost investment option.
These funds give investors exposure to top companies from diverse sectors. This diversification significantly helps in mitigating market-based risks.
You should consider the following points before investing in the top nifty 50 mutual funds.
Take a close look at the current state of the market and assess any economic or political factors that may influence the performance of the top Nifty 50 index.
Tracking error is the difference between the returns generated by an index fund and the benchmark index. The metric determines how well an index fund has tracked the movements of the underlying benchmark. Thus, the lower the tracker, the better the index fund is.
It is an annual charge levied by fund houses on investors to cover the expenses related to running a particular fund. These expenses include advertising and marketing costs, management fees, etc. It is crucial to consider the expense ratio since it directly impacts the net annual returns you earn.
Clearly define your financial goals and risk tolerance and ensure that investing in the Nifty 50 Index aligns with your objectives.
Remember that investing in the Nifty 50 index is a long-term commitment and requires a patient and disciplined approach, avoiding impulsive reactions to short-term market fluctuations.
When it comes to redeeming an index fund, you may have to pay taxes on capital gain.
Point to Note
Capital gains below ₹1 lakh are exempt from tax.
Investing in the top Nifty 50 index fund may be a wise choice for investors seeking to tap into the growth potential of India’s top 50 companies. The best nifty 50 index fund offers a low-cost, diversified, and convenient way to access the performance of India’s largest companies, making it a valuable addition to any well-rounded investment portfolio. If you plan to invest in low-cost Nifty 50 index funds, you could do so with Navi Mutual Fund. What’s better? You can start investing with just ₹10! If you plan to invest in low-cost Nifty 50 index funds, you could do so with Navi Mutual Fund. What’s better? You can start investing with just ₹10!
You can buy Nifty 50 index fund units via the AMC’s website or app. All you need to do is complete your KYC verification and link your bank account to start investing. Another way to invest is via third-party aggregators and brokers. However, investing via third-party could mean you’re investing in regular plans, which have a slightly more expense ratio compared to direct plans.
Over the past 20 years, Nifty 50 TRI (Total Return Index) has given 14.18% CAGR returns. Over the same period gold has 12.38% CAGR returns, while FDs have given 7.1% average CAGR returns.
To make monthly investments in Nifty 50, you can start an SIP or Systematic Investment Plan. For instance, with Navi Mutual Fund, you can start investing with as low as Rs.10.!
No, the Nifty 50 index fund is not tax-free. Investors have to pay taxes according to equity mutual fund taxation. The short-term capital gain is taxed at 15%, while the long-term capital gain in excess of Rs. 1,00,000 in a year is taxed at 10%. However, gains below Rs.1 lakh are exempt from tax.
The minimum SIP amount is decided by AMC and could be as low as ₹10. However, check with your AMC to understand a scheme’s minimum SIP investment amount.
The Nifty 50 index comprises stocks from the top 50 Indian companies across 13 sectors. The companies are listed based on a market cap of ₹20,000 crore or more.
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