Index Fund Mutual Funds in India
Updated September 2026 · 404 active funds · data from AMFI NAVs · benchmark: NIFTY 50 TRI
An Index Fund is an open-ended mutual fund that aims to replicate a stated index - such as the NIFTY 50, Sensex, NIFTY Next 50, or a bond index - by holding the same securities in the same weights. Under SEBI's 2017 categorization framework these sit in the passive/index-solutions group, and SEBI rules cap their tracking error and tracking difference so they stay close to the benchmark. There is no active stock selection: the manager's job is faithful replication and tight cost control, not outperformance. What an index fund holds depends entirely on its index - an equity index fund carries full equity-market risk and volatility, while a debt or gilt index fund behaves like its underlying bonds. Returns are designed to match the index minus a small expense ratio and tracking slippage, so they will modestly trail the index rather than beat it. Index funds are commonly used as low-cost core holdings for long-term SIPs and as a simple way to own a broad market. The default benchmark on FindMF is the fund's stated index (often NIFTY 50 TRI), and FindMF computes returns, volatility, drawdown, and where data allows tracking-related and alpha/beta metrics from AMFI-published NAVs under one disclosed methodology.
Who it suits: Long-term, hands-off investors who want broad, low-cost market exposure through a regular SIP without a demat account.
72% of the 288 funds here with a computed alpha beat their benchmark over the measured window (positive alpha). Past performance is not indicative; this is analysis, not advice.
| # | Scheme | 1Y | 3Y | 5Y | Sharpe | Max DD | TER | AUM |
|---|---|---|---|---|---|---|---|---|
| 1 | Motilal Oswal S&P 500 Index Fund Motilal Oswal | +26.94% | +27.48% | +18.16% | 0.74 | -19.9% | 0.58% | ₹4.1K Cr |
| 2 | ICICI Prudential Nifty Pharma Index Fund ICICI Prudential | +23.01% | +21.65% | - | 0.96 | -16.6% | 0.50% | ₹97 Cr |
| 3 | UTI Nifty 500 Value 50 Index Fund UTI | +9.63% | +21.11% | - | 0.98 | -22.6% | 0.69% | ₹603 Cr |
| 4 | Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund Edelweiss | +24.27% | +20.51% | +14.28% | 0.66 | -16.3% | 0.51% | ₹170 Cr |
| 5 | Motilal Oswal BSE Enhanced Value Index Fund Motilal Oswal | +5.81% | +19.81% | - | 0.92 | -21.8% | 0.60% | ₹1.5K Cr |
| 6 | Kotak Nifty Smallcap 50 Index Fund Kotak Mahindra | +14.01% | +19.70% | - | 0.89 | -25.0% | - | ₹177 Cr |
| 7 | Aditya Birla Sun Life Nifty Smallcap 50 Index Fund Aditya Birla Sun Life | +14.16% | +19.64% | +12.98% | 0.52 | -36.7% | - | ₹249 Cr |
| 8 | Axis Nifty Smallcap 50 Index Fund Axis | +14.30% | +19.56% | - | 0.55 | -27.7% | 0.28% | ₹533 Cr |
| 9 | ICICI Prudential Nifty Auto Index Fund ICICI Prudential | +1.48% | +19.02% | - | 0.81 | -28.3% | 0.36% | ₹204 Cr |
| 10 | Navi Nifty India Manufacturing Index Fund Navi | +6.55% | +17.98% | - | 0.74 | -23.0% | 0.47% | ₹70 Cr |
| 11 | Motilal Oswal Nifty Microcap 250 Index Fund Motilal Oswal | +11.24% | +17.60% | - | 0.62 | -29.4% | 0.57% | ₹2.3K Cr |
| 12 | Kotak Nifty Next 50 Index Fund Kotak Mahindra | +5.82% | +17.41% | +11.50% | 0.52 | -26.3% | - | ₹905 Cr |
| 13 | LIC MF Nifty Next 50 Index Fund LIC | +6.03% | +17.39% | - | 0.57 | -26.4% | 0.59% | ₹98 Cr |
| 14 | UTI Nifty Next 50 Index Fund UTI | +5.76% | +17.38% | +11.34% | 0.51 | -26.5% | 0.41% | ₹6.0K Cr |
| 15 | Edelweiss Nifty Next 50 Index Fund Edelweiss | +5.77% | +17.38% | - | 0.55 | -26.4% | 0.26% | ₹208 Cr |
| 16 | Axis Nifty Next 50 Index Fund Axis | +5.86% | +17.36% | - | 0.46 | -26.3% | 0.20% | ₹423 Cr |
| 17 | Motilal Oswal Nifty Next 50 Index Fund Motilal Oswal | +5.66% | +17.34% | +11.35% | 0.51 | -26.4% | 0.32% | ₹409 Cr |
| 18 | SBI Nifty Next 50 Index Fund SBI | +5.71% | +17.34% | +11.33% | 0.44 | -26.5% | 0.33% | ₹1.8K Cr |
| 19 | DSP Nifty Next 50 Index Fund DSP | +5.71% | +17.31% | +11.37% | 0.51 | -26.6% | 0.37% | ₹1.2K Cr |
| 20 | Navi Nifty Next 50 Index Fund Navi | +5.65% | +17.26% | - | 0.42 | -26.3% | 0.22% | ₹1.1K Cr |
Ranked by trailing return (3Y where available, else 1Y) on funds with at least one year of history. Returns, Sharpe, drawdown and TER are computed independently from AMFI NAVs - see methodology. No paid placement.
Frequently asked questions
How are gains from an Index Fund taxed?
It depends on what the fund tracks. An equity-oriented index fund (at least 65% in Indian equities, such as a NIFTY 50 or Sensex fund) is taxed as equity: short-term gains on units held under 12 months are taxed at 20%, and long-term gains (12 months or more) at 12.5% on gains above Rs 1.25 lakh per year. A debt or bond index fund (under 35% equity) bought on or after 1 April 2023 has its entire capital gain taxed at your income-tax slab rate regardless of holding period, with no LTCG or indexation benefit.
What is a reasonable expense ratio, and how should I compare index funds?
Index funds are among the cheapest mutual funds, and within a single index (say NIFTY 50) the holdings are nearly identical across providers - so cost and tracking quality are the main differentiators. Prefer a lower expense ratio and a fund that has historically stayed close to its index. FindMF shows each fund's disclosed expense ratio and NAV-derived returns so you can compare same-index funds side by side rather than chasing small return differences.
What is tracking error and why does it matter for an index fund?
Tracking error measures how much a fund's returns deviate from its benchmark index. A well-run index fund should have low tracking error, meaning it closely mirrors the index. Drivers include the expense ratio, cash drag, and how efficiently the manager rebalances. Lower is better for a passive product. FindMF computes index-relative metrics from AMFI NAVs where sufficient benchmark history exists.
Will an index fund beat the market?
No - by design it aims to match its index, not exceed it. After the expense ratio and small tracking slippage, an index fund will slightly trail its benchmark. The appeal is low cost, transparency, and removing the risk of an active manager underperforming. FindMF presents NAV-based returns and does not recommend any scheme.