SIP Calculator: If you are a mutual fund investor then you must know about index funds. These funds track the market index. For such investors who want less risk in equity, this is a good investment option for them.
The return received in this is equal to the market index. According to the latest data of AMFI, most of the index funds have given an average return of more than 25% in the last 3 years. In the January-March 2023 quarter, a total inflow of Rs 39285.7 crore was recorded in index funds.
Very low expense ratio for index funds
However, there are many index funds which have given lower returns than their benchmark index. In such a situation, it is important to understand some things before investing. Index funds are passively managed. There is no role of fund management in this. Due to this the expense ratio is very low. If an index fund is following Nifty 50, then all the stocks of Nifty 50 in that fund will be in the same proportion as their weightage in the index.
Top 5 Index Funds
Ankush Pahuja, Business Head, Complete Circle Capital and Arihant Bardia, CIO, Valtrust, have selected the top-5 index funds based on their performance in a special program of Money Guru. The names of the five funds are given below and the returns are based on 3 years.
| Funds | 3 Years (Performance Based Direct Schemes as on 2nd May from AMFI website) |
| Motilal Oswal Nifty Smallcap 250 Index Fund | 37.25% |
| DSP Nifty 50 Equal Weight Index Fund | 28.94% |
| HDFC Index Fund Nifty 50 Plan | 23.52% |
| ICICI Prudential Nifty 50 Index Fund | 23.45% |
| Aditya Birla Sun Life Nifty 50 Index Fund | 23.23% |
Made a millionaire in 3 years
Among the funds selected by experts, Motilal Oswal Nifty Smallcap 250 Index Fund has given the highest returns in 3 years. According to the SIP Calculator, if an investor had started a SIP of Rs 10,000 in this scheme three years ago and had made an upfront investment of Rs 10,000, then today his fund would have been Rs 5,7,000. The total amount of investment in three years would have been Rs.3.7 lakhs. The annual average return is 20.71 per cent.
Minimum SIP of Rs 500
However, past performance in a mutual fund does not guarantee future performance. Despite this, if the performance of this scheme remains the same, then by starting a SIP of Rs 10,000 from today, you will become a millionaire in the next 3 years and you will have a fund of about Rs 5 lakh ready. Minimum SIP of Rs 500 and minimum Rs 500 can be invested in this scheme. The size of the fund is Rs 315 crore, while the NAV is Rs 21.
(Disclaimer: Mutual Fund investments are subject to market risks. Past performance should not be considered as a measure of future returns. This does not constitute investment advice. Consult your advisor before making any investment decision .)
You may also like
