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.
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.
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 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.
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.
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.
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.
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.
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Dear Basu
I am a housewife and my savings are mine and I am not dependent on it . My husband has his own savings and supports me. Please advise if it is wise for me to shift from my active funds to Index fund as I get older it may be difficult to manage many funds. If yes then should I do it at one go or gradually? Please let me know if I should hold on to Axis long term equity.
Regards.
Dear Meenakshi,
Please call me to my number (available on this page).
Dear Basu
I am 60 years old. I have put 15 lacs each in PMVY and SCSS. 75% of my savings are in bank and corporate FDs. Rest in direct stocks and mutual funds. I hold ICICI Bluechip, ICICI Value Discovery, Mirae Emerging Bluechip ,HDFC Flexi cap, Axis Long term equity, Mirae tax saver, ICICI Equity and debt fund and SBI Equity hybrid fund. I have some surplus amount which I dont want to put in FD.
.(1) Should I invest in UTI Nifty fund lumpsum?
(2)Should I gradually switch from active funds to Index fund so that it would be easier for me to manage in future?
(3) I am worried about Axis Long term equity. What should I do?
Kindly advise
Dear Meenakshi,
It is hard for me to guide without knowing your full financial life.
Hi Basu,
As current markets both Sensex & Nifty Next 50 falling... Is it Good Idea to push extra available cash right now or continue with my regular monthly manual Purchase...
Your inputs makes a lot of sense in my approach.
Dear Anil,
Such fall is common and we don't know how much downfall is pending. Hence, better to stick to your regular than trying to time the market.
Hi Basu,
What's your prediction/forecast for Nifty and Nifty Next 50 during 2022. Graph you would see going up or down or maintain in same line.
Dear Anil,
I am not sure what be during 2022. But sure of good growth if you are an investor of decade.
so you are suggesting to discontinue sbi and mirae fund
Dear Shrinidhi,
Yes.
Sorry i missed epf contribution monthly 5k..
i will revise my portfolio
Equity
parag parik flexi fund– 4k —
sbi bluechip-2k–
UTI Nifty -2k
Mirae elss fund-30 k yearly.
Debt
Sukanya samridi-50 k yearly
ppf -50 k yearly
VPF-6k monthly
view is for long term 10 to 15 years
ration 60 debt 40 equity
Dear Shrinidhi,
In case of equity, make sure to have UTI NIfty and UTI Nifty Next 50 and Parag Parikh. These three are enough.
Hi Basu,
Its for long term view 10 to 15 years.
As of now it is 60 equity 40 debt. next year i will be increasing ratio in debt so that it will 60 debt and 40 equity.
HI Basu,
Here is my updated portfolio pls provide feedback.
parag parik flexi fund– 4k — two year completed
sbi bluechip-2k– two year completed
UTI Nifty -2k
Sukanya samridi-50 k yearly
ppf -50 k yearly
Mirae elss fund-30 k yearly.
pls let me know any change is required.
Dear Shrinidhi,
It is hard for me to do asset allocation and within the asset for each fund allocation and that also without knowing your goals. Follow the above post cautiously.
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
Dear Anil,
There is no such great difference. You can choose either Nifty or Index.
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
Dear Shrinidhi,
Why RD and FD for 10 years goal?
NO basu,'
RD ,FD is not for 10 year period..
its for yearly basis only ..as emergency debt fund.
Dear Shrinidhi,
Please separate your emergency fund from investment.