Best Nifty 50 Index Mutual Funds to Buy in India (2025)

A Nifty 50 index fund is an index mutual fund that invests in stocks of companies listed on the NSE’s Nifty 50 index. It aims to replicate the index’s performance through passive investment. The fund manager tracks the index and adjusts the fund’s holdings to match its composition.

Investing in Nifty 50 is a passive approach that results in a lower total expense ratio than actively managed funds, making the Nifty 50 index fund a cost-effective investment. It offers returns that reflect the broader market. This article will explore a list of the top Nifty 50 index funds to invest in based on their 5-yr CAGR, fund overviews, and how to invest in Nifty 50 index funds in India.

Top 10 Nifty 50 Index Funds for 2024

Here is a list of some of the best Nifty 50 index funds based on 5-yr CAGR:

Nifty 50 Index Fund Name	AUM (Rs. in Cr)	Expense Ratio (%)	5Y CAGR (%)
Bandhan Nifty 50 Index Fund	1,564.74	0.1	16.36
UTI Nifty 50 Index Fund	19,626.32	0.19	16.17
ICICI Pru Nifty 50 Index Fund	11,563.15	0.17	16.15
Nippon India Index Fund-Nifty 50 Plan	2,002.75	0.07	16.11
Tata NIFTY 50 Index Fund	989.76	0.2	16.09
HDFC Index Fund-NIFTY 50 Plan	18,104.74	0.2	16.09
DSP NIFTY 50 Index Fund	642.70	0.18	16.06
SBI Nifty Index Fund	8,465.40	0.2	16.02
Aditya Birla SL Nifty 50 Index Fund	960.71	0.2	16.01
LIC MF Nifty 50 Index Fund	318.97	0.2	15.94

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data on the Nifty 50 index fund list is from 12th November 2024. This data is derived from the Tickertape Mutual Funds Screener.

• MF Universe: Funds Tracking Nifty
• Plan: Growth
• Category: Index Funds
• 5Y CAGR: Sorted from highest to lowest.

🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.

Overview of the Best Nifty 50 Index Funds

Among the best index mutual funds in 2024, Nifty 50 funds stand out due to their ability to replicate the performance of top Indian companies. Here are fund overviews of the funds in our Nifty 50 index mutual fund list:

Bandhan Nifty 50 Index Fund

Bandhan Nifty 50 Index Fund has a current Net Asset Value (NAV) of Rs. 53.06, as of 12th November 2024. The fund’s 1-yr return is 25.21%, and its 3-yr CAGR is 11.70%. This Nifty Midcap 50 index fund manages assets worth Rs. 1,564.74 cr. with an expense ratio of 0.1%. There is no exit load for this fund. The fund’s requirement for minimum investment is Rs. 1,000. For SIPs, the minimum investment amount required in the Bandhan Nifty 50 Index Fund is Rs. 100.

UTI Nifty 50 Index Fund

UTI Nifty 50 Index Fund has a current Net Asset Value (NAV) of Rs. 166.91 as of 12th November 2024. The fund’s 1-yr return is 25.28%, and its 3-yr CAGR is 11.59%. This fund manages assets worth Rs. 19,626.32 cr. and has an expense ratio of 0.19%. It does not have any exit load. The minimum investment required is Rs. 5,000, and SIP investments at a minimum of Rs. 500.

ICICI Pru Nifty 50 Index Fund

ICICI Prudential Nifty 50 Index Fund has a net asset value (NAV) of Rs. 251.10 as of 12th November 2024. Its 1-yr return is 25.21%, its 3-yr CAGR is 11.56%, and its 5-yr CAGR is 16.15%. The fund currently manages assets worth Rs. 11,563.15 cr. The minimum investment amount is Rs. 100, and the same minimum applies to SIPs.

Nippon India Index Fund-Nifty 50 Plan

Nippon India Index Fund – Nifty 50 Plan has a Net Asset Value (NAV) of Rs. 43.26 as of 12th November 2024. The 1-yr return for this fund is 22.45%, its 3-yr CAGR is 11.56%, and its 5-yr CAGR is 16.11%. It manages assets worth Rs. 2,002.75 cr. and has an expense ratio of 0.07%. There is an exit load of 0.25% if the fund is redeemed within 7 days. The minimum investment required is Rs. 100, with the same minimum for SIP investments as well.

Tata NIFTY 50 Index Fund

Tata Nifty 50 Index Fund has a current net asset value (NAV) of Rs. 159.88 as of 12th November 2024. The fund has a 1-yr return of 22.37%, a 3-yr CAGR of 11.56%, and a 5-yr CAGR of 16.09%. The fund manages assets worth Rs. 989.76 cr., with an expense ratio of 0.20%. An exit load of 0.25% applies if redeemed within 7 days. The minimum investment required is Rs. 5,000. The fund’s minimum SIP investment is Rs. 150.

HDFC Index Fund-NIFTY 50 Plan

HDFC Index Fund Nifty 50 Plan has a net asset value (NAV) of Rs. 229.79 as of 12th November 2024. The fund’s 1-yr return is 22.44%, its 3-yr CAGR is 11.56%, and its 5-yr CAGR is 16.09%. The fund holds assets under management (AUM) worth Rs. 18,104.74 cr. with an expense ratio of 0.20%. An exit load of 0.25% is applied if the fund is redeemed within 3 days. The minimum investment in this fund is Rs. 100, with SIPs starting at the same amount.

DSP NIFTY 50 Index Fund

DSP Nifty Next 50 Index Fund is an equity mutual fund from DSP Mutual Fund, managed by Anil Ghelani and Diipesh Shah. The fund has an AUM of Rs. 642.70 cr, and its latest NAV is Rs. 23.16 as of 12th November 2024. Over the past year, this fund has delivered a return of 22.50%. Furthermore, the fund has a 3-yr CAGR of 11.57%, and its 5-yr CAGR is 16.06%. The minimum SIP investment in the fund is Rs. 100. 

SBI Nifty Index Fund

SBI Nifty Index Fund is an equity mutual fund from SBI Mutual Fund, managed by Raviprakash Sharma. It has an AUM of Rs. 8,465.40 cr. and a NAV of Rs. 219.71 as of 12th November 2024. Over the past year, this fund has returned 22.48%. The minimum SIP investment amount of the fund is Rs.500. The fund’s 3-yr CAGR is 11.59%, its 5-yr CAGR is 16.02%, the fund’s expense ratio is 0.20%, and its PE ratio is 33.07.

Aditya Birla SL Nifty 50 Index Fund

Aditya Birla Sun Life Nifty 50 Index Fund is an equity mutual fund from Aditya Birla Sun Life Mutual Fund. Managed by Pranav Gupta and Haresh Mehta, the fund has an AUM of Rs. 960.71 cr., with a current NAV of Rs. 245.10 as of 12th November 2024. Over the past year, the fund has delivered a return of 22.48%. Investors can start a SIP in this scheme with a minimum amount of Rs. 100. The fund’s 3-yr CAGR is 11.51%, its 5-yr CAGR is 16.01I %, the expense ratio is 0.20%, and the PE ratio is 33.07. 

LIC MF Nifty 50 Index Fund

LIC MF Nifty 50 Index Fund Direct-Growth is an equity mutual fund from LIC Mutual Fund. Managed by Sumit Bhatnagar, the fund has an AUM of Rs. 318.97 cr. and a NAV of Rs.141.26 as of 12th November 2024. The fund had 1-yr returns of 22.41%. The minimum SIP investment amount in this Nifty smallcap 50 index fund is Rs. 1000. The fund’s 3-yr CAGR is 11.51%, the expense ratio is 0.20%, and the PE ratio is 15.94.

How to Invest in Nifty 50 Index Mutual Funds?

When evaluating which Nifty 50 index mutual fund to invest in, it’s important to compare the index fund return to the overall market performance and other funds, such as the Next 50 Index Fund, to ensure a balanced and profitable portfolio.

Investing in the best Nifty 50 Index Funds is a straightforward process. Here are some steps that might be helpful. 

1. Visit the official website of the AMC.
2. Fill in the necessary information.
3. Complete the e-KYC process by providing Aadhaar and PAN card details.

For those opting to invest through mobile apps, the process is as follows:

1. Download the relevant mobile app, like the smallcase app, for instance.
2. Register by providing the required contact information.
3. Complete the e-KYC procedure.

Upon successful verification, individuals can initiate investments in various Nifty 50 Index Funds in India through different mobile apps. Despite the streamlined process, it’s essential to consult a financial advisor and conduct thorough research before investing.

What are Index Funds?

An index fund is a mutual fund that passively tracks a specific market index, such as the Nifty 50 or Sensex. Instead of actively selecting individual stocks, index funds to invest in hold all the stocks in the index in the same proportion. This strategy aims to replicate the performance of the chosen index. In contrast, actively managing mutual funds involves a fund manager deciding which stocks to buy and sell, aiming to outperform the market through strategic buying and selling. 

What is a Nifty 50 Index Fund?

Nifty 50 Index Funds, including Nifty IT index funds, are investment funds that aim to replicate the performance of the NSE Nifty 50 index, a benchmark index comprising 50 large, actively traded stocks on the National Stock Exchange of India (NSE). 

The best Nifty 50 index funds to invest in passively track the Nifty 50 index, seeking to mirror its returns. They can expose investors to a diversified portfolio of leading companies across various sectors. The best-performing Nifty 50 Index Funds can be designed to offer a convenient and cost-effective way for investors to participate in the potential growth in the Indian stock market without the need to manage individual stocks actively.

How do Nifty 50 Index Mutual Funds Work? 

When you find an index fund to invest in, the fund manager allocates your money to stocks in the same ratio as the tracked index. For example, Reliance Industries has a 10.408 % weightage in the Nifty 50; the Nifty Index Fund’s manager might consider this when constructing a portfolio. Likewise, stocks of other companies are held in proportional alignment with the index.

If a stock’s weightage has increased or decreased in the index, the Index Fund manager adjusts the fund accordingly. When a stock is excluded and replaced, the fund manager sells the removed stock and acquires the new stock. Thus, it maintains proportional alignment with the index.

Key Features of the Best Nifty 50 Index Funds

Here are some of the key features of Nifty mutual funds, from a passive investment approach for simplicity to diversified portfolios. 

• Passive Investment Approach: Investors may appreciate the passive investment strategy of Nifty 50 Index Funds. These funds aim to replicate the India Nifty 50 index, allowing them to participate in the market without needing active stock selection.
• Diversification: Nifty funds, including the best Nifty IT index funds to invest in, can offer strong diversification, spreading investments across 50 large-cap stocks from various sectors. This can be beneficial for risk-conscious investors who seek a well-rounded portfolio.
• Market Representation: Investors can gain exposure to the broader Indian equity market through the best-performing Nifty 50 Index Funds, potentially gaining insights into the overall economic landscape.
• Liquidity: Including highly liquid stocks in the Nifty 50 index may provide investors with liquidity benefits. These stocks can be easily bought or sold in the market without significantly impacting their price. 
• Benchmark Performance: Investors can use the Nifty 50 index as a benchmark to assess the fund’s performance. It may provide a transparent and straightforward way to evaluate their investment.
• Low Portfolio Turnover: These funds may have lower portfolio turnover due to their passive nature. This characteristic might reduce transaction costs and potential tax efficiency for investors.

Before making investment decisions, individuals may find it helpful to review the specific features of individual funds, such as expense ratios, tracking errors, and historical performance. However, it is always worthwhile to consult a professional before investing.

Advantages of Investing in the Nifty 50 Index Funds

Investors looking for long-term Nifty 50 mutual fund returns in 2024 should consider the best index mutual funds in 2024, which consistently mirrors top market performers. Let’s look at the advantages of investing in the best Nifty 50 index funds. 

• Absence of Fund Manager Bias: The fund manager’s role is solely to replicate the tracked index. For instance, an index investment fund mirroring the Nifty Next 50 Index exclusively invests in the 50 stocks comprising that index. With no need for personal stock selection or timing market entry and exit, the risk of personal bias is nullified.
• Cost-Effective Investment: Even for the best Nifty Fifty index fund, a team of analysts isn’t required for extensive research or the timing of market trends for individual stock entries and exits. Consequently, the cost of managing an Index Fund is notably lower compared to actively managed Equity Mutual Funds.
• Diversified Portfolio: Indices typically represent diversified baskets of stocks across various sectors, with limitations on individual stock exposure. As Index Mutual Funds can replicate the chosen index, investors benefit from diversified portfolios by minimising risk. Achieving such a high degree of diversification at a low cost can often be challenging for actively managed funds.

Sector-Wise Weightage of the Nifty 50 Index

Over the past decade, index fund returns from Nifty 50 have proven to be stable and robust, making it an attractive option for long-term investors. The Nifty fifty index funds are computed using the free float market capitalisation method. This means that the weight of each stock in the index is proportional to its free float market capitalisation.

The table below represents the top Nifty 50 index sectors and their respective weightage:

Sector	Weight (%)
Financial Services	34.25
Information Technology	12.92
Oil, Gas & Consumable Fuels	10.76
Fast Moving Consumer Goods	8.22
Automobile and Auto Components	7.43
Healthcare	3.99
Construction	3.92
Telecommunication	3.98
Metals & Mining	3.54
Power	3.12
Consumer Durables	2.47
Construction Materials	2.08
Consumer Services	1.46
Capital Goods	0.94
Services	0.93

Note: The data on this list was taken on 13th November 2024. 

Who can Invest in Nifty 50 Funds?

When considering an index investment fund, investors often focus on the Nifty 50 as a benchmark for large-cap equity exposure. However, there are also emerging opportunities in the Next 50 Index Fund, which tracks the next set of companies just below the top 50.

Nifty 50 funds can be a good investment option for a broad spectrum of investors, including individuals, institutional investors, and even foreign investors. These funds are accessible to anyone interested in gaining exposure to the Nifty 50 index funds and participating in the performance of the 50 large-cap stocks represented in the index. Investors with varying risk appetites and investment horizons may consider including the best Nifty 50 index funds in their portfolios based on their financial goals and preferences.

Taxation on Nifty 50 Mutual Funds as per the Union Budget of 2024-25

The tax on returns from index funds depends on your income tax slab and the duration for which you hold the investment. Index funds mirror the performance of a market index, providing returns close to the index’s performance. Investors who seek predictable index returns often choose these funds. Here’s a breakdown of the capital gains tax levied on the gains from your index fund investments based on the revisions made in the Union Budget 2024:

Equity Index Funds

• Short-Term Capital Gains (STCG): The gains from units held for less than a period of 12 months are taxed at 20%.
• Long-Term Capital Gains (LTCG): The gains from units held for over a period of 12 months are now taxed at 12.5%. However, gains up to Rs. 1 lakh are tax-free. Indexation benefits were withdrawn during the Union Budget of 2024-25.

Debt Index Funds

• Short-Term Capital Gains (STCG): The gains from units held for less than 36 months are taxed according to your income tax slab rate.
• Long-Term Capital Gains (LTCG): The gains for mutual funds held over 36 months are called long-term capital gains. For investments made after April 1, 2023, gains are taxed as STCG at your income tax slab rate, with no indexation benefit. Investments made before this date enjoy the old LTCG rate of 20% with indexation benefits.

Mutual fund schemes where neither the equity nor debt orientation exceeds 65% will now be classified as long-term investments after 24 months. The previous holding period for these funds was 36 months. These will be taxed at the revised LTCG tax rate of 12.5%.

Risks Associated with Investing in the Best Nifty 50 Index Funds

Here are some of the risks associated with even the best-performing Nifty 50 index funds to invest in. 

• Market Volatility: Investments in even the best Nifty 50 index fund can be susceptible to market fluctuations. Thus, the fund’s value may vary based on the index’s performance.
• Economic Factors: The Nifty 50 mutual fund returns may be influenced by broader economic conditions, including inflation rates, interest rates, and overall economic stability.
• Tracking Error: While designed to mimic the Nifty 50 index, even the best Nifty 50 funds may experience tracking errors, which lead to deviations in performance compared to the index.
• Single Index Exposure: Since the fund closely follows the Nifty 50 index, its performance is directly tied to the companies within that index, lacking diversification beyond these 50 stocks.
• Market Risks: While looking at top-performing index funds, check for any changes in market sentiment, geopolitical events, or unforeseen crises that can impact the performance of even the best Nifty 50 mutual funds. 
• Liquidity Risks: The liquidity of the underlying assets in the Nifty 50 index may affect the fund’s ability to buy or sell securities and potentially impact returns. 
• Regulatory Changes: Alterations in regulatory policies can affect the Nifty 50 index or equity markets. In general, it could impact the fund’s performance and investor returns.
• Long-Term Commitment: Similar to equity investment, investing in the best Nifty 50 index fund requires a long-term commitment. The short-term market fluctuations may not align with immediate investor goals.

Factors to Consider When Investing in Nifty 50 Index Funds

The best index mutual funds in 2024, especially Nifty 50 trackers, are predicted to outperform many actively managed counterparts due to their low fees and efficiency. Consider the following factors when assessing Nifty 50 index funds:

• Performance History: Evaluate the fund’s performance over different market conditions and time periods, comparing it with the Nifty 50 index. Consistent performance indicates effective index tracking.
• Return Potential: While these funds aim to mirror the Nifty 50 index, actual returns may vary due to tracking discrepancies and fees. Compare historical returns with the benchmark to gauge performance.
• Fund Management Expertise: Despite being passively managed, fund managers’ experience is crucial. Assess their track record to ensure they can effectively manage the fund and minimise tracking errors.

These considerations help investors make informed decisions when investing in the best-performing Nifty 50 index funds.

To Wrap It Up…

In conclusion, investing in the best Nifty 50 index funds can be a good investment option, especially for investors aiming to capitalise on the growth potential of India’s leading 50 companies. The best Nifty index funds can provide an economical, diversified, and user-friendly avenue to tap into the performance of India’s largest corporations. As always, investors must research and consult their financial advisors before investing.

Frequently Asked Questions About Nifty 50 Index Funds

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