In January 2025, the Nifty 50 Index fund continues to serve as a key indicator of the Indian stock market, representing 50 prominent companies from various sectors.
According to the AMFI data, as of November 2024, the total Assets Under Management (AUM) for Index Funds reached ₹2,73,175 crore, up from ₹2,23,054.50 crore in April 2024, reflecting a growth of approximately 22.5%.
The steady growth in AUM highlights the increasing role of passive investment strategies in India’s evolving financial landscape.
Let’s dive into the top 10 Nifty 50 index funds in January 2025, ranked by their 5-year CAGR performance.
| Fund Name | AUM (₹ Cr) | CAGR 5Y (%) | Expense Ratio (%) | Tracking Error (%) |
| Bandhan Nifty 50 Index Fund | 1,564.74 | 15.39 | 0.1 | 0.08 |
| Motilal Oswal Nifty 50 Index Fund | 569.68 | 15.36 | 0.15 | 0.04 |
| UTI Nifty 50 Index Fund | 20,082.94 | 15.2 | 0.18 | 0.03 |
| ICICI Pru Nifty 50 Index Fund | 11,919.15 | 15.18 | 0.18 | 0.04 |
| Nippon India Index Fund-Nifty 50 Plan | 2,036.21 | 15.14 | 0.07 | 0.06 |
| Tata Nifty 50 Index Fund | 1,079.62 | 15.12 | 0.19 | 0.08 |
| HDFC Nifty 50 Index Fund | 18,412.12 | 15.12 | 0.2 | 0.03 |
| DSP Nifty 50 Index Fund | 655.82 | 15.1 | 0.18 | 0.05 |
| Taurus Nifty 50 Index Fund | 4.83 | 15.08 | 0.8 | 0.26 |
| SBI Nifty Index Fund | 8,465.40 | 15.07 | 0.2 | 0.01 |
Note: The top 10 Nifty 50 index mutual funds listed above are sorted as per the 5-year CAGR as of January 01, 2025.
The Bandhan Nifty 50 Index Fund aims to replicate the performance of the Nifty 50 Index by investing in its constituent securities in the same proportion.
As of November 2024, the fund has a well-diversified sector allocation, with the largest portion, 33.29%, invested in the financial sector, followed by 13.76% in technology and 12.92% in energy.
Among its top stock holdings are HDFC Bank (11.35%) in the financial sector, Reliance Industries (8.65%) in the energy sector, and ICICI Bank (7.75%) in the financial sector.
Key metrics:
The Motilal Oswal Nifty 50 Index Fund seeks investment returns that correspond to the performance of the Nifty 50 Index.
As of November 2024, the fund is well-diversified across sectors, with the largest portion, 33.28%, invested in the financial sector, followed by 13.76% in technology and 12.50% in energy.
Some of the top stock holdings in this fund include HDFC Bank (12.58%) in the financial sector, Reliance Industries (8.66%) in the energy sector, and ICICI Bank (7.75%) in the financial sector. As of November 2024
Key metrics:
The UTI Nifty 50 Index Fund seeks to replicate the performance of the Nifty 50 Index by investing in the constituent stocks of the index in the same proportion.
As of November 2024, the fund’s sector allocation is diversified, with the largest portion, 33.30%, invested in the financial sector, followed by 13.77% in technology and 12.51% in energy.
The fund’s top stock holdings include HDFC Bank (12.59%) in the financial sector, Reliance Industries (8.65%) in the energy sector, and ICICI Bank (7.74%) in the financial sector.
Key metrics:
ICICI Pru Nifty 50 Index Fund aims to closely track the performance of the Nifty 50 Index by investing in almost all the stocks in the same proportion that they represent in the index.
As of November 2024, the fund’s sector allocation is well-diversified, with the largest allocation of 33.25% in the financial sector, followed by 13.75% in technology and 12.51% in energy.
Top stock holdings in the fund include HDFC Bank (11.33%) in the financial sector, Reliance Industries (8.64%) in the energy sector, and ICICI Bank (7.74%) in the financial sector.
Key metrics:
The Nippon India Index Fund-Nifty 50 Plan aims to replicate the composition of the Nifty 50 Index, with the goal of generating returns that are in line with the performance of the Nifty, subject to tracking errors.
As of November 2024, the fund has a well-diversified sector allocation, with the largest portion of 33.27% invested in the financial sector, followed by 13.75% in technology and 12.51% in energy.
Top stock holdings in the fund include HDFC Bank (11.35%) in the financial sector and Reliance Industries (8.65%) in the energy sector, which are key contributors to the performance of the Nifty 50 Index.
Key metrics:
The fund holds the same stocks in the same proportions as the Nifty 50 index, ensuring it tracks the index’s performance closely.
The fund is periodically rebalanced to reflect changes in the Nifty 50 index, such as stock additions or deletions.
By investing in Nifty 50 funds, investors automatically gain exposure to the top-performing companies in India’s stock market.
The fund typically distributes dividends received from the companies it holds, though investors can also opt for reinvestment.
Nifty 50 funds aim to minimise tracking error, which is the difference between the fund’s performance and the index it tracks.
Nifty 50 index funds typically have lower management fees compared to actively managed funds due to their passive investment strategy.
These funds provide clear insights into the holdings, as they mirror the publicly listed Nifty 50 index.
Nifty 50 index funds are liquid, meaning investors can easily buy or sell units on any business day without significant price fluctuations.
These funds are suitable for investors looking to hold for the long term, benefiting from the overall growth of the Indian economy.
Investors in Nifty 50 funds are typically eligible for long-term capital gains tax benefits if held for more than one year, which makes them tax-efficient.
Ideal for those who are looking to invest for the long haul and benefit from the compounded growth of India’s top companies.
Those who prefer a hands-off approach and want exposure to a wide range of companies without actively managing their portfolios.
As the Nifty 50 provides diversification across multiple sectors, it’s suitable for individuals who seek lower volatility in their investments.
Beginners looking for an easy and low-cost entry point into the Indian stock market may find Nifty 50 index funds an ideal choice.
Individuals looking for a low-maintenance investment option for retirement planning can use Nifty 50 index funds as a foundation for their portfolios.
Although Nifty 50 funds aim to replicate the index, small discrepancies in performance (tracking error) can arise, which may affect returns.
While diversified, the fund’s performance is still tied to the overall performance of the stock market, so market downturns can still lead to losses.
Some Nifty 50 index funds may charge an exit load if investments are redeemed within a short period (usually within a year).
Larger funds with a higher asset base tend to have better liquidity, ensuring easy buy-and-sell transactions.
Even though index funds are generally low-cost, comparing the expense ratios among different funds is important to ensure you’re getting the best deal.
Nifty 50 index funds provide an attractive option for investors seeking passive, low-cost, and diversified exposure to India’s leading 50 companies. However, it is important for investors to be aware of potential risks, as market volatility can result in short-term losses. Keeping track of the fund’s performance and understanding these risks are key to making well-informed investment choices. It is advisable to consult with a financial advisor to ensure that these funds align with your broader investment goals and risk appetite.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
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