20 Best Nifty 50 Index Funds in India to Invest in April 2023 (2024)

What is the Nifty 50 Index Fund?

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.

Top 20 Nifty 50 Index Funds in India 2023

Check out the list of 20 best nifty 50 Index funds 2023 (data updated on February 28, 2023)

How is the Nifty 50 Index Constructed?

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.

What is the Composition of the Nifty 50 Index?

The table below represent Nifty 50 sectors and their respective weightage:

Performance of Best Nifty 50 Index Funds 2023

Let us analyse the performance of the best-performing nifty 50 index funds in detail:

1. Navi Nifty 50 Index Fund Direct-Growth

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.

• NAV: ₹11.07
• AUM: ₹663.07 crore
• Expense Ratio: 0.06%
• Min Investment
  • SIP: ₹10
  • Lumpsum: ₹10
• Return
  • 1-Year Annualised Return: 6.9%
  • 3-Year Annualised Return: NA
  • 5-Year Annualised Return: NA
  • All time Annualised Return: 6.50%
• Risk: Very high
• Launched Date : 3rd December, 2009

2. ICICI Prudential Nifty 50 Index Plan Direct-Growth

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.

• NAV: ₹178
• AUM: ₹3,977.09 Crore
• Expense Ratio: 0.17%
• Min Investment
  • SIP: ₹100
  • Lumpsum: ₹100
• Return
  • 3-Year Annualised Return: 30.0%
  • 5-Year Annualised Return: 12.1%
• Risk: Very high
• Launched Date : 26 Feb,2002

3. UTI Nifty 50 Index Fund-Growth Option- Direct

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.

• NAV: ₹118.24
• AUM: ₹9475.27 Crore
• Expense Ratio: 0.2%
• Min Investment
  • SIP: ₹500
  • Lumpsum: ₹5000
• Return
  • 3 Year Return: 30.3%
  • 5 Year Return: 12.2%
• Risk: Very high
• Launched Date : 6th March, 2023

4. HDFC Index Fund Nifty 50 Plan-Direct Plan

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.

• NAV: ₹164.61
• AUM: ₹3324.56Crores
• Expense Ratio: 0.18%
• Min Investment
  • SIP: ₹100
  • Lumpsum: ₹100
• Return
  • 3-Year Annualised Return: 30.14%
  • 5-Year Annualised Return: 12.11%
• Risk: Very high
• Launched Date : 1st Jan, 2013

5. SBI Nifty Index Fund Direct Growth

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.

• NAV: ₹157.30
• AUM: ₹3324.543 Crore
• Expense Ratio: 0.18%
• Min Investment
  • SIP: ₹500
  • Lumpsum: ₹5,000
• Return
  • 3-Year Annualised Return: 30.13%
  • 5-Year Annualised Return: 11.99%
• Risk: Very high
• Launched Date : 1st Jan, 2013

6. Motilal Oswal Nifty 50 Index Fund Direct-Growth

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.

• NAV: ₹14.63
• AUM: ₹234.01 Crore
• Expense Ratio: 0.14%
• Min Investment
  • SIP: ₹500
  • Lumpsum: ₹500
• Return
  • 3 Year-Annualised Return: 29.95%
  • 5 Year-Annualised Return: NA
• Risk: Very high
• Luanched Date : 23 Dec, 2009

7. Nippon India Index Fund – Nifty 50 Plan – Direct Plan – Growth Plan

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.

• NAV: ₹29.01
• AUM: ₹638.77 Crore
• Expense Ratio: 0.61%
• Min Investment
  • SIP: ₹100
  • Lumpsum: ₹100
• Return
  • 3-Year Annualised Return: 28.85%
  • 5-Year Annualised Return: 11.20%
• Risk: Very high
• Launched Date : 28th Sep,2010

8. IDFC Nifty 50 Index Fund Direct Plan Growth

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.

• NAV: ₹36.91
• AUM: ₹644.34 crore
• Expense Ratio: 0.6%
• Min Investment
  • SIP: ₹100
  • Lumpsum: ₹1,000
• Return
  • 3-Year Annualised Return: 29.63%
  • 5 Year Annualised Return: 12.02%
• Risk: Very high
• Launched Date : 1st jan, 2013

9. DSP Nifty 50 Index Fund Direct-Growth

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.

• NAV: ₹16.58
• AUM: ₹271.36 Crore
• Expense Ratio: 0.24%
• Min Investment
  • SIP: ₹500
  • Lumpsum: ₹500
• Return
  • 3-Year Annualised Return: 29.56%
  • 5 Year Return: NA
• Risk: Very high
• Launched Date : 21 Feb,2019

10. Kotak Nifty 50 Index Fund Direct-Growth

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.

• NAV: ₹11.13
• AUM: ₹260.25 Crore
• Expense Ratio: 0.51%
• Min Investment
  • SIP: ₹100
  • Lumpsum: ₹100
• Return
  • 1-Year Annualised Return: -0.93%
  • 3 Year Return: NA
  • 5 Year Return: NA
• Risk: Very high
• Launched Date : 21 June,2021

11. IDBI Nifty Index Fund

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.

• NAV: ₹31.96
• AUM: ₹188.93 Crore
• Expense Ratio: 0.9%
• Min Investment
  • SIP: ₹1000
  • Lumpsum: ₹5000
• Return
  • 1-Year Annualised Return: -1.29%
  • 3 Year Annualised Return: 28.92%
  • 5 Year Annualised Return: 11.10%
• Risk: Very high
• Launched Date : 25th June, 2010

12. LIC MF Nifty 50 Index Fund

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.

• NAV: ₹95.83
• AUM: ₹53.62 Crore
• Expense Ratio: 1.01%
• Min Investment
  • SIP: ₹1000
  • Lumpsum: ₹5000
• Return
  • 1-Year Annualised Return: -1.27%
  • 3-Year Annualised Return: 28.92%
  • 5-Year Annualised Return: 11.23%
• Risk: Very high
• Launched Date : 5th Dec, 2002

13. Aditya Birla Sun Life Nifty 50 Index Fund

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.

• NAV: ₹172.89
• AUM: ₹494.36 Crore
• Expense Ratio: 0.6%
• Min Investment
  • SIP: ₹1000
  • Lumpsum: ₹100
• Return
  • 1-Year Annualised Return: -1.07%
  • 3-Year Annualised Return: 29.26%
  • 5-Year Annualised Return: 11.53%
• Risk: Very high
• Launched Date : 18th Sep, 2002

14. Franklin India NSE Nifty 50 Index Fund

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.

• NAV: ₹138.30
• AUM: ₹482.31 Crore
• Expense Ratio: 0.66%
• Min Investment
  • SIP: ₹5000
  • Lumpsum: ₹500
• Return
  • 1-Year Annualised Return: -0.99%
  • 3-Year Annualised Return: 29.08%
  • 5-Year Annualised Return: 11.30%
• Risk: Very high
• Launched Date : 1st Jan, 2013

15. Taurus Nifty 50 Index Fund

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.

• NAV: ₹33.16
• AUM: ₹2.38 Crore
• Expense Ratio: 1.04%
• Min Investment
  • SIP: ₹5000
  • Lumpsum: ₹500
• Return
  • 1-Year Annualised Return: -0.53%
  • 3-Year Annualised Return: 29.35%
  • 5-Year Annualised Return: 11.63%
• Risk: Very high
• Launched Date : 1st Jan, 2013

16. Tata Nifty 50 Index Fund

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.

• NAV: ₹107.53
• AUM: ₹369.33 Crore
• Expense Ratio: 0.52%
• Min Investment
  • SIP: ₹150
  • Lumpsum: ₹5000
• Return
  • 1-Year Annualised Return: -1.53%
  • 3-Year Annualised Return: 29.61%
  • 5-Year Annualised Return: 11.76%
• Risk: Very high
• Launched Date :1st Jan, 2013

17. HSBC Nifty 50 Index Fund

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.

• NAV: ₹20.07
• AUM: ₹141.73 Crore
• Expense Ratio: 0.2%
• Min Investment
  • SIP: ₹1000
  • Lumpsum: ₹5000
• Return
  • 1-Year Annualised Return: -3.9%
  • 3-Year Annualised Return: NA
  • 5-Year Annualised Return: NA
• Risk: Very high
• Launched Date : 16 April, 2020

18. Axis Nifty 50 Index Fund

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.

• NAV: ₹10.30
• AUM: ₹213.89 Crore
• Expense Ratio: 0.12%
• Min Investment
  • SIP: ₹100
  • Lumpsum: ₹500
• Return
  • 1-Year Annualised Return: -1.12%
  • 3-Year Annualised Return: NA
  • 5-Year Annualised Return: NA
• Risk: Very high
• Launched Date : 3rd Dec, 2021

19. Edweiss Nifty 50 Index Fund

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.

• NAV: ₹10.06
• AUM: ₹11.84 Crore
• Expense Ratio: 0.17%
• Min Investment
  • SIP: ₹100
  • Lumpsum: ₹100
• Return
  • 1-Year Annualised Return: -0.52%
  • 3-Year Annualised Return: NA
  • 5-Year Annualised Return: NA
• Risk: Very high
• Launched Date : 8th May, 2015

20. DSP Nifty 50 Equal Weight Index Fund

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.

• NAV: ₹33.16
• AUM: ₹2.38 Crore
• Expense Ratio: 1.04%
• Min Investment
  • SIP: ₹500
  • Lumpsum: ₹500
• Return
  • 1-Year Annualised Return: -0.39%
  • 3-Year Annualised Return: 35.07%
  • 5-Year Annualised Return: 10.64%
• Risk: Very high
• Launched Date : 23 Oct, 2017

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.

How to Invest in Nifty 50 Index Fund?

Online Process

1. Investing through AMC’s Website

2. Investing through a Mobile Application

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.

Offline Process

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.

Who Should Invest in Nifty 50 Index Fund?

Investing in Nifty 50 index mutual fund is ideal for:

1. Beginner Investors

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.

2. Long-term Investors

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.

3. Investors Looking to Invest in Top Companies at a Lower Risk

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.

4. Cost-conscious Investors

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.

5. Investors Seeking Diversification

These funds give investors exposure to top companies from diverse sectors. This diversification significantly helps in mitigating market-based risks.

Factors to Consider Before Investing in Nifty 50 Index Fund

You should consider the following points before investing in the top nifty 50 mutual funds.

1. Market Dynamics

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.

2. Tracking error

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.

3. Expense Ratio

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.

4. Investment Objective

Clearly define your financial goals and risk tolerance and ensure that investing in the Nifty 50 Index aligns with your objectives.

5. Long-term View

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.

How are Nifty 50 Index Funds Taxed in 2023?

When it comes to redeeming an index fund, you may have to pay taxes on capital gain.

1. If the units are held for more than a year and have gained above ₹1 lakh, you will attract an LTCG (Long-Term Capital Gain) tax of 10%.
2. If the units are held for less than 12 months, the resulting STCG (Short-Term Capital Gain) is taxed at a rate of 15%.

Point to Note

Capital gains below ₹1 lakh are exempt from tax.

Final Word

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!

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