5 cheapest index funds in the market - Why index funds?

Jul 16, 2021, 10:19:32 AM IST

1/6

Why index funds?

Index funds have been the talk of the town after they outperformed their actively-managed large cap peers in the last couple of years. The Indian mutual fund industry is slowly gravitating towards the passive investment model. Many big fund houses have ventured into the space with some new and interesting offerings. Recently, some fund houses distrupted this space with the lowest costing funds. We have compiled a list of five of the cheapest funds available in the market. For this list, we have taken into account only direct plans of these funds.

Getty Images

Navi Nifty 50 Index Fund

Navi Nifty 50 Index Fund is the latest entrant in the category of index funds. This fund is launched by a relatively new fund house Navi Mutual Fund, owned by co-founder, Sachin Bansal. The fund tracks Nifty 50 TRI. Navi Nifty 50 Index fund is the only scheme that has the lowest expense ratio of 0.06% to be launched this month that has caused a stir in the market.

Shutterstock.com

3/6

Motilal Oswal Nifty 50 Index Fund

Next in line is the Motilal Oswal Nifty 50 Index fund with an expense ratio of 0.10%. The fund was launched in August 2019 and is benchmarked against Nifty 50 Index TRI. The average AUM of the scheme was Rs 76.28 crore at the end of June, 2021. The scheme has generated 50.50% returns in the last one year.

TOI.in

Nippon India Index Fund - Sensex Plan

Up next is Nippon India Index Fund - Sensex Plan with an expense ratio of 0.15%. The fund was launched in September 2010 and tracks the performance of S&P BSE Sensex TRI. The AUM of the scheme stands at Rs 152.06 crore at the end of June, 2021. The scheme has given 47.66% returns in one year, 14.00% returns in three years and 14.55% returns in five years.

ThinkStock Photos

5/6

Axis Nifty 100 Index Fund

Axis Nifty 100 Index Fund is another index fund having an expense ratio of 0.15%. This fund tracks the Nifty 100 Index. The fund was launched in October 2019 and has an AUM of Rs 457.10 crore as of June, 2021. Axis Nifty 100 Index Fund has offered 50.11% returns in the last one year.

Getty Images

6/6

IDFC Nifty Fund

IDFC Nifty Fund is one of the oldest schemes in this list. The scheme has an expense ratio of 0.16%. The scheme mirrors the performance of Nifty 50 TRI. Since its launch in April, 2010, the AUM of the fund has grown significantly. The AUM of the scheme was Rs 325.83 crores at the end of June, 2021. The scheme has generated 50.76% returns in one year, 14.12% returns in three years, and 14.24% returns in five years.

Getty Images

5 cheapest index funds in the market - Why index funds? - The Economic Times (2024)

Why index funds?

Navi Nifty 50 Index Fund

Motilal Oswal Nifty 50 Index Fund

Nippon India Index Fund - Sensex Plan

Axis Nifty 100 Index Fund

IDFC Nifty Fund