List of Index Funds in India 2021

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Which is the Best Index Funds in India 2021? This may be the question in your mind. Hence, instead of sharing the best Index Funds in India 2021 list, I am sharing here the complete list of Index Funds in India 2021.

In my list of Top 10 Best SIP Mutual Funds to invest in India in 2021, I have already mentioned my intentions of why I am adopting the Index Funds. Hence, for those who may wish to follow their choice of funds, this list of Index Funds in India 2021 may be helpful.

How to choose the best Index Funds in India 2021?

As per my knowledge, while you decided to invest in Index Funds, then the next step is to select the best suitable for you among the available list of Index Funds. Three important things matters here while choosing and they are as below.

# Expense Ratio

Choose the Fund which is having a less expense ratio. Because at the end it is the cost which is also the major force we are turning towards Index Funds rather than active Funds.

# Tracking Error

Tracking error means the difference between the fund returns to it’s benchmark (Index). Lower the tracking error means the fund manager managed well to generate the same return of the Index. Hence, choose the one which has a lower tracking error.

# AUM of the Fund

Usually, higher the AUM means better for the fund manager to manage the sudden inflow and outflow. Hence, choose the one which is currently having the highest AUM.

These three are the major pointers while you are selecting the Index Funds.

List of Index Funds in India 2021

Do remember that, while preparing this list, I am not concentrating on the returns. Instead, to make your life easier, I am concentrating on the Expense Ratio, Tracking Error, and the AUM.

I have updated the data as of January 2021 factsheets. Also, wherever the tracking error is not provided in the factsheets, I kept that data blank.

Best Index Funds in India 2021

In the above list, I have listed Nifty 50 and Nifty Next 50 Index Funds. In the below list, I am sharing the other Index Funds available in India.

List of Index Funds in India 2021

You noticed that few AMCs not publishing the tracking error data. When we are choosing the Index Funds, this is the main data we have to look for. However, I am not sure why they are not publishing such data or I am unable to find the data. But I am sure that they are not publishing if we go by their monthly factsheets. The same AMCs are publishing the tracking error for ETFs but not for Index Funds. I think SEBI has to bring in this clarity for the investors. Let us hope for the same.

Refer to our latest posts:-

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51 Responses

  1. From above recommended list I see Nifty & Sensex Funds are listed.

    According to you which one would be a right choice in large cap with 40% allocation part of 100% Equity with asset allocation of 60:40 with Equity:Debt

  2. Hi Basu,
    Can you please review my portfolio

    For equity
    parag parik flexi fund– 4k — two year completed
    sbi bluechip-2k– two year completed

    debt
    parag liquid fund-2k—- started 3 month back
    rd-2k — one year back
    fd-8 lack

    Now i would like to add index fund in portfolio. can u pls suggest is it good or shall i add one more debt fund.
    duration long term more than 10 years.. have emergency fund as fd.

    Thanks

      1. NO basu,’
        RD ,FD is not for 10 year period..
        its for yearly basis only ..as emergency debt fund.

  3. Dear Basu,

    The info you provided is very insightful. My goal is to make lumpsum for goals of House(short term 10 Yrs) and retirement(20 Yrs).
    As per your suggestion i am trying o maintain 60:40 ratio of Equity and Debt.
    I started Investing in MF last yr and my portfolio has following funds
    1. Mirae Asset large cap fund (Reg) – 30%
    2. Axis long term Equity(ELSS) – Planning now not to invest instead in FY 21-22, instead invest in UTI Nifty Index Fund. (40%)
    3.Kotak Multi Cap fund direct (10%)
    4. Parag Flexi cap fund direct (20%)

    For Debt I am investing in PPF and some chit funds for less risk.

    Can you please have a look and give me some suggestions on the fund portfolio. I am planning to hold only one Multicap that is Parag Flexi cap.
    Will u suggest any alternative for this approach on Investment.
    I am not having SIP and Invest lumpsum every time in Month begining.

      1. Dear Basu,

        Do u mean, shall i stop investing in large cap and only focus for Index funds for better portfolio??

        Could you suggest the strategy for Index investing?

  4. Thank you Sir for sharing valuable insight. I always look forward to your articles. Wanted to ask you couple of things

    1. Is it ok to start with 100% Equity for a Goal which is 20 Plus Years down the line and then gradually decrease equity component and increase debt component?
    2. For Short Term Goals like 3-4 Years it is ok to have a small equity component for first year and then gradually making it 0 for final year.

    1. Dear Dheeraj,
      1) I personally feel anything beyond 60% is risky. Protecting ourselves for downside fall is most important than looking for an uptrend.
      2) Again, ideally better to avoid equity if your goal is less than 5 years.

  5. Dear Basu Sir

    Thank you for your informative posts.

    I am self employed and my goal is retirement 10 years away. After trimming my portfolio, thanks to your blogs, I have allocated Equity – Debt 60 -40.

    My current Equity funds are :

    1) HDFC Hybrid & Mirae Hybrid [to avoid concentrate on one AMC & Mirae being slightly aggressive than HDFC] 40%

    2) Parag Parikh Flexi Cap [40%]

    3) UTI Nifty Next 50 [20%]

    My Debt Funds are:

    1) PPF

    2) Franklin India Savings Fund

    3) HDFC Short Term Debt

    Now with the current market rise, my Equity to Debt is 70 – 30. I am planning to rebalance back to 60- 40 as my original plan. PPF will be the main component. I prefer not to invest in RDs or FDs at present due to taxation and I need money only 10 years later.

    I plan to diversify the debt part further more by adding two more funds. 4) UTI Arbitrage 5) Parag Parikh Liquid Fund.

    This not only enhances safety of my capital but I can easily switch the gains from UTI Nifty Next 50 to UTI Arbitrage and gains from Parag Flexi to Parag Liquid. Also in case of unseen expenditure, liquidity from these 2 funds will be far more flexible including taxation point of view.

    Can you please comment if you are on board with my idea or you have different thoughts please. Having known the pain of managing 16 funds earlier with no specific direction, I really want to get this right so that I do not have to change for a wrong decision. Unexpected situation is different thing.

    I stopped investing in Franklin Savings after their 6 funds closed briefly but going through several articles, I think this fund has stood its ground and trust deficit is not that much. I am now investing in it again. Your thoughts please.

    Thank you once again

    Regards

    Vikas Vyas

      1. Dear Basu Sir

        Thank you for your answer.

        1) Will stick to 60:40 asset allocation.

        2) When you say 50% for UTI Nifty Next 50, does that mean I have to divide the balance 50% between the Hybrid and Multi Cap fund please?

        3) Are my choices of funds on track especially for debt component Parag Liquid and UTI Arbritrage please.

        4) To summarize:

        Equity – Debt : 60: 40 asset allocation

        Equity

        a) UTI Nifty Nxt 50 (50%) b) Multi Cap (25%) c) Hybrid (25%) [of the 60% allocation]

        Debt

        a) PPF (maximum possible) b) UTI Arbitrage c) Parag Liquid

        Is this Ok please?

        Thank you once again for all your help.

        Regards

        Vikas

          1. Dear Basu Sir.

            Thank you so much.

            You made my life easier, did not know why and where I am Investing before i hit your blogs.

            Each day is learning experience and I am much better than couple of years ago.

            I can only wish you all the happiness for you and your family and I am sure many other avid readers of your blog will wish the same.

            Not only you take the pain of explaining everything in detail, I have seen you answering all the queries with equal enthusiasm.

            Thank you again

            Vikas

  6. Dear Basu, Kindly share your views .

    Currently i am invested 60% of my money into equity funds(UTI Nifty 50 and UTI NN50 index funds).

    Is it advisable to keep single fund(AMC). or Should we spread the money to different AMCs of the same type of fund(Nifty index) to avoid concentration issue.

    Just quoting Goalwise FAQ on this ” Even though we are recommending index funds, we want to diversify across AMCs so that all your money is not concentrated is just one fund/AMC. This is to protect against the unlikely but non-zero possibility of something going wrong with a particular fund/AMC itself in future (remember Franklin?).”

    1. Dear Kalai,
      For simplicity and fund options available it is best for you currently. However, when you are investing in Index Funds, the role of AMC or Fund Managers is NIL. Franklin fiasco is an entirely different thing and not comparable with Index Funds.

  7. Thank you Sir for sharing valuable insight.

    Requesting some more information. Thank you so much in advance.

    1. Is Nifty very costly / high at these levels.

    2.Can you please suggest in this high market, where to park spare funds
    (Very long terms for 10 year view)

    3. Is starting SIP in Nifty Index MF and Next Fifty MF is ok now? or should we make some lump sum investment in Index funds

    4. or Should we park money in Debt funds and wait for the market to fall

    5. Regarding the investment already made in MF , should we continue to hold or encash it, as some fear that market will fall from these high levels.

    Once again, grateful for your kind advise

    1. Dear Ravinder,
      1) Yes but if you have long term goals and you did the proper asset allocation between debt and equity, then the best time to invest is TODAY.
      2) If your goal is more than 10 years, then do as per your goal asset allocation. Check 2007-08 high to 2021 high and you noticed that the highs are meant to create NOISE. I still suggest you to go for long term goal with strict asset allocation.
      3) I have answered your question.
      5) If your goal is long term and there is no deviation in asset allocation, then why to withdraw?

      1. Sir thanks for your reply.

        Just one more question no. 4.

        If there is no goals to be met and all requirements upto 10 years have been taken care of,
        Should we invest in equities as lump sum or invest in 12 /24 equal installments. Meanwhile keeping money for STP in Ultra Short term or liquid debt funds.

        Thank you much for your kind guidance

  8. My allocation to debt is 20%
    and allocation to Equity is 80%

    I am a LONG TERM investor – 10 yrs for my dauhter and son studies and marriage (each 2 mutual fund )

    I am investing in SIP method for last 2 yrs .of late i see one of the portfolio return below average ( L & T infrastructure direct growth ) and 2nd one is giving 12% anual return ( Canara Robeco Emerging Equities – Direct Plan (G))

    can i redeem L & T infrastructure direct growth and invest that full amount to Canara Robeco Emerging Equities – Direct Plan (G)) as lumpsum or sip

    please reply

  9. Your advice is very esssntial for us who r new to stock market and mutual fund.i am intersting in gold bond… Plz explain about it…i am unkown about gold bond

  10. Your AUM figures are not correct.
    Niftybees is at 2700 cr.

    So this is in a way misleading people to buy other mutual funds.

  11. Respected sir,
    As per this useful knowledge I go to UTI nifty index fund from this month through SIP it is possible ? Please advice.
    Thank Sir.

  12. Nicely elaborated B.T sir
    Want to know more on SBI etf nifty 50 index funds vs SBI nifty 50 index funds

    It’s aum are different,other comparable ratios are also differs
    Pls suggest

  13. It is so nice of you to educate persons like me to plan invest ment wisely and that too as ‘Fee-Only Financial process and planning consultant

  14. Dear Basu,
    Have you published any post earlier related to how to manage portfolio for goals . Unified or Separate portfolio for goals. For retail investor (family of 4 ) normally used to have minimum 4 goals like Retirement,Son Education,Daughter Education,Marriages of Kids and Car purchase(or House purchase). How do we design portfolio for goals. Request you to refer any previous port or come up with new one.

    1. Dear Kalai,
      If the goal time horizon is more than 10 years and adopting the same asset allocation then a unified portfolio is obviously the simplest way of managing the investment. However, if you are setting different asset allocations for different goals, then rather than creating confusion, it is better to have an individual portfolio. You can refer my earlier blog post “Financial Goals – How to set before jumping into investing?“.

      1. Thanks Basu. All my goals are greater than 10+ years from Today. If i choose Unified portfolio then Single asset allocation is fine for now. But after 5 years, my first goal in the list becomes 5 years tenure goal. So Should i adjust the asset allocation for that particular goal. Actually when starting 10 + years goal list , unified approach seems easier to understand, But when each goal in the list becoming medium term goal(6-10 years), then confusion starts how to manitain AA. This what i need your suggestion.

        1. Dear Kalai,
          “So Should i adjust the asset allocation for that particular goal.”-YES obviously you have to adjust based on the proportionate of the goal amount you allocated since the beginning.
          If it confuses you, then no harm in creating an individual portfolio.

          1. I’m actually following this approach. I have separate goal planning sheets for retirement, child education, child marriage. Each goal matures at a different year and follows its own AA. The Equity:Debt for each goal is summed up and investment of total Equity:Debt is done accordingly in one portfolio.

            Just want to know ,Is my approach correct . I agree its ideal to have individual portfolio for each goal. The problem is that I started investing long before I planned out my financial goals, so breaking it now in different portfolios is a challenge.

              1. Basu, Currently i have only 2 funds(N50 and NN50) for equity portion. and some debt products(PPF,EPF and Liquid fund,FD). Now how do i migrate to separate portfolio for each goals.
                1. Should i redeem the funds and buy separate folio for each mentioned fund.
                2. Capital gain(mostly STCG) is more now due to market all time high.

                Kindly advise.

  15. Dear Basu
    Thanks for the useful article. For the equity part of my 20 year goal I am planning to invest in Nifty 50 and Nifty next 50 funds. For Nifty 50 I have chosen Uti. For Nifty next 50 I am thinking about Uti also as tracking error is less, but wondering whether I should put all my money in same Fund house or would be better to chose ICICI Nifty next 50.

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