List of Top Nifty 50 Index Funds 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.
Top 10 Nifty 50 Index Funds for 2025
| Nifty 50 Index Fund Name | AUM (Cr.) | CAGR 3Y (%) | Expense Ratio | CAGR 5Y (%) |
|---|---|---|---|---|
| Bandhan Nifty 50 Index Fund | 1,952.97 | 12.94 | 0.1 | 18.04 |
| UTI Nifty 50 Index Fund | 23,718.66 | 12.92 | 0.17 | 18.03 |
| Nippon India Index Fund-Nifty 50 Plan | 2,606.59 | 12.91 | 0.07 | 17.99 |
| Motilal Oswal Nifty 50 Index Fund | 738.34 | 12.95 | 0.12 | 17.99 |
| HDFC Nifty 50 Index Fund | 20,589.72 | 12.89 | 0.2 | 17.98 |
| SBI Nifty Index Fund | 10,048.05 | 12.90 | 0.19 | 17.97 |
| ICICI Pru Nifty 50 Index Fund | 13,913.57 | 12.87 | 0.19 | 17.97 |
| DSP NIFTY 50 Index Fund | 824.56 | 12.91 | 0.17 | 17.97 |
| HSBC Nifty 50 Index Fund | 346.00 | 12.87 | 0.18 | 17.96 |
| Tata NIFTY 50 Index Fund | 1,296.46 | 12.84 | 0.19 | 17.92 |
Note: The data on the Nifty 50 index fund list is from 5th March 2025. 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 Performing Nifty 50 Funds
Bandhan Nifty 50 Index Fund
Bandhan Nifty 50 Index Fund aims to mirror the performance of the Nifty 50 Index by investing in the same companies and proportions. It offers simple, low-cost exposure to India’s top 50 listed firms.
UTI Nifty 50 Index Fund
UTI Nifty 50 Index Fund replicates the Nifty 50 Index by investing in its constituent stocks. It provides investors with diversified exposure to large-cap companies across sectors at a relatively lower cost.
Nippon India Index Fund – Nifty 50 Plan
Nippon India Index Fund – Nifty 50 Plan seeks to track the Nifty 50 Index closely. It invests in all 50 index constituents, offering investors access to India’s leading blue-chip companies.
Motilal Oswal Nifty 50 Index Fund
Motilal Oswal Nifty 50 Index Fund is designed to replicate the Nifty 50 Index performance. It invests in the index constituents, providing investors an opportunity to participate in India’s overall market growth.
HDFC Nifty 50 Index Fund
HDFC Nifty 50 Index Fund tracks the Nifty 50 Index by investing in its constituent stocks. It offers diversified large-cap exposure and aims to deliver returns aligned with the index performance.
SBI Nifty Index Fund
SBI Nifty Index Fund seeks to replicate the performance of the Nifty 50 Index by investing in its constituent stocks. It offers investors diversified exposure to India’s top large-cap companies across multiple sectors.
ICICI Pru Nifty 50 Index Fund
ICICI Pru Nifty 50 Index Fund aims to mirror the Nifty 50 Index by investing in the same stocks and proportions. It provides a cost-effective way to participate in India’s large-cap equity market.
DSP Nifty 50 Index Fund
DSP Nifty 50 Index Fund tracks the Nifty 50 Index by investing in all 50 of its constituent companies. It offers simple, broad-based exposure to India’s largest and most liquid stocks.
HSBC Nifty 50 Index Fund
HSBC Nifty 50 Index Fund replicates the Nifty 50 Index performance by investing in its underlying stocks. It provides diversified large-cap equity exposure across sectors at a relatively lower cost.
Tata Nifty 50 Index Fund
Tata Nifty 50 Index Fund invests in the Nifty 50 Index constituents to closely track its returns. It offers investors an opportunity to gain broad exposure to India’s leading blue-chip companies.
How to Invest in Nifty 50 Index Mutual Funds?
You can easily invest in the best Nifty 50 Index mutual funds by following these steps:
- To invest in mutual funds, you can visit an equity investment platform such as smallcase or Tickertape.
- The next step would be to research and identify the best Nifty 50 Index mutual funds to invest which aligns with your investment thesis. You can easily select and learn more about the best Nifty 50 Index mutual funds with the help of a financial tool like the Tickertape Mutual Fund Screener. With 50+ pre-loaded filters, it helps you to create a comprehensive list and allows for in depth Nifty 50 fund comparison.
- Once you have selected the Nifty 50 equity funds based on different metrics and parameters, go to smallcase.com or the smallcase app, and login via your phone number. Click on ‘Discover‘ and enter the name of the specific mutual fund name in the search bar and hit enter. You can click on ‘invest now’ and select whether you want to invest a lump sum amount or start a SIP and start investing!
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade model portfolios of stocks/ETFs, that are based on a theme idea or strategy
- They’re created and managed by SEBI-registered investment experts (also known as smallcase managers)
- smallcase offers over 500+ stock portfolios, created by 200+ managers
Here are a few popular smallcases among new investors:
Disclosures for aforementioned smallcases
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 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 top Nifty 50 mutual funds 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 Fund investment 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.
Key Features of the Top Nifty 50 Mutual Funds
Here are some of the key features of top Nifty 50 funds:
- Passive Investment Approach: Investors may appreciate passively managed mutual funds as compared to actively managed mutual funds when it comes to Nifty 50 Index Funds.
- Diversification: Nifty 50 investment options, including the best Nifty IT index funds, 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 Nifty 50 fund portfolio.
- Market Representation: Investors can gain exposure to the broader Indian equity funds 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 Nifty 50 long-term investments.
- Low Portfolio Turnover: These low-cost Nifty 50 index funds may have lower portfolio turnover due to their passive nature. This characteristic might reduce transaction costs and potential tax efficiency for investors.
Advantages of Investing in the Nifty 50 Index Funds
Here are a few key Nifty 50 mutual fund benefits:
- 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.
- 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. First-time investors can explore many options for low-cost nifty 50 funds, as 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. 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
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 | 36.82 |
| Information Technology | 10.51 |
| Oil, Gas & Consumable Fuels | 9.90 |
| Automobile and Auto Components | 7.79 |
| Fast Moving Consumer Goods | 6.95 |
| Telecommunication | 4.65 |
| Construction | 3.82 |
| Healthcare | 3.75 |
| Metals & Mining | 3.48 |
| Consumer Services | 3.03 |
| Power | 2.53 |
| Consumer Durables | 2.38 |
| Construction Materials | 2.31 |
| Capital Goods | 1.20 |
| Services | 0.88 |
Note: The data on this list was taken on 9th September 2025.
Who Should Explore Nifty 50 Funds?
- First-Time Equity Investors: Individuals new to equity markets who want diversified exposure to large-cap companies without the need to select individual stocks.
- Long-Term Wealth Builders: People looking to grow wealth steadily over time by investing in India’s top-performing companies through a simple, low-cost option.
- Passive Investment Seekers: Investors preferring a hands-off approach who want returns closely aligned with the Nifty 50 Index without active portfolio management.
- Goal-Oriented Planners: Those investing towards long-term goals like retirement, children’s education, or home ownership, where consistency matters more than short-term market movements.
- Portfolio Diversifiers: Experienced investors aiming to add stable, large-cap exposure to balance the risk from mid-cap, small-cap, or thematic investments.
Taxation on Nifty 50 Mutual Funds as per the Union Budget of
Equity Mutual 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 ₹1 lakh are tax-free. Indexation benefits were withdrawn during the Union Budget of 2024-25.
Debt Mutual 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 funds 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 investing in nifty 50 mutual funds.
- Market Volatility: Investments in even the best Nifty 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 index 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 top Nifty 50 funds closely follow the Nifty 50 index, its performance is directly tied to the best mutual fund companies within that index, lacking diversification beyond these 50 stocks. Hence, even high return Nifty 50 funds are exposed to this risk.
- Market Risks: While looking at Nifty 50 fund performance, 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 index mutual funds may affect their ability to buy or sell securities and potentially impact the Nifty 50 index fund returns.
- Regulatory Changes: Alterations in regulatory policies can affect the Nifty 50 fund for long-term. In general, it could impact the fund’s performance and investor returns.
Factors to Consider When Investing in Nifty 50 Index Mutual Funds 2025
The best index mutual funds 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 performance of the best mutual fund in India in this category compared with the Nifty 50 index over different market conditions and time periods. Consistent performance indicates effective index tracking.
- Return Potential: While Nifty 50 mutual funds for growth aim to mirror Nifty mutual funds, 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 top-performing Nifty 50 funds.
To Wrap It Up…
In conclusion, the best Nifty 50 index funds are among the top mutual funds, 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.
Looking for a Loan Against Mutual Funds (LAMF)? Explore LAMF on smallcase –
You can now apply for a loan against mutual funds (LAMF) on smallcase. Explore the quick and paperless process with the following articles about the eligibility criteria, documents required, features, benefits and more on LAMF at smallcase!
Frequently Asked Questions About Nifty 50 Index Funds
Yes, monthly investing in a Nifty index SIP (Systematic Investment Plan) is possible. You can choose to invest a fixed amount of money every month, and the mutual fund company will automatically purchase units of the fund on your behalf.
Direct plans of Nifty index mutual funds allow investors to invest directly with the fund house, offering lower expense ratios, while regular plans involve intermediaries or distributors, resulting in higher costs.
Nifty 50 index funds or Nifty 50 ETFs track the 50 largest companies, while Nifty 500 index funds cover a broader set of 500 companies, including the Nifty 50. The better option depends on diversification needs and risk preference.
Here are the top Nifty 50 index funds sorted according to their 5Y CAGR:
– Bandhan Nifty 50 Index Fund
– UTI Nifty 50 Index Fund
– Nippon India Index Fund-Nifty 50 Plan
– Motilal Oswal Nifty 50 Index Fund
– HDFC Nifty 50 Index Fund
Note: The data on this list of top Nifty 50 investment funds in India was taken on 9th September 2025. This list is for educational purposes and is not recommendatory in nature.
