Index Fund: Stock market profits come home without any hassle, not just one or two but 21 index funds gave more than 60% return

Top 21 Index Funds by Annual Return : Index funds may be considered the easiest and least risky way to invest in the stock market or equity, but this does not mean that the returns are low. The latest data shows that in terms of returns, index funds of different categories can give tough competition to any category of active funds. There are at least 21 index funds in the Indian mutual fund industry, whose returns in the last one year have been 60% or more. The list of these 21 highly successful index funds (List of Top 21 Index Funds) which we are giving below has the highest return of more than 76%.

Top 21 Index Funds: 61 to 76% returns in one year

Name of Fund / Returns in One Year (Direct Plan)

1. Motilal Oswal BSE Enhanced Value Index Fund : 76.57%
2. UTI Nifty 500 Value 50 Index Fund : 75.38%
3. SBI Nifty Next 50 Index Fund : 67.15%
4. DSP Nifty Next 50 Index Fund : 67.11%
5. ICICI Prudential Nifty Next 50 Index Fund : 67.09%
6. UTI Nifty Next 50 Index Fund : 67.09%
7. Edelweiss Nifty Next 50 Index Fund : 67.08%
8. Motilal Oswal Nifty Next 50 Index Fund : 66.99%
9. Aditya Birla Sun Life Nifty Next 50 Index Fund : 66.96%
10. Kotak Nifty Next 50 Index Fund : 66.95%
11. HSBC Nifty Next 50 Index Fund : 66.75%
12. Navi Nifty Next 50 Index Fund : 66.70%
13. HDFC NIFTY Next 50 Index Fund : 66.69%
14. LIC MF Nifty Next 50 Index Fund : 66.67%
15. Axis Nifty Next 50 Index Fund : 66.65%
16. UTI Nifty200 Momentum 30 Index Fund : 63.50%
17. Motilal Oswal Nifty 200 Momentum 30 Index Fund : 63.33%
18. ICICI Prudential Nifty 200 Momentum 30 Index Fund : 62.55%
19. ICICI Prudential Nifty Auto Index Fund : 62.41%
20. Kotak Nifty 200 Momentum 30 Index Fund : 62.33%
21. Bandhan Nifty200 Momentum 30 Index Fund : 61.93%

(Source: AMFI)

Also read: Top 9 schemes of HDFC Mutual Fund, earning 50% to 87% in 1 year, are these names in your portfolio?

What are the benefits of investing in index funds

It is clear from the list given above that despite being a passive fund, index funds are not weaker than any active fund in terms of returns. But this is not the only advantage of investing in them. Being a passive fund, those who invest in them do not even have to worry about how correct the decisions of the fund manager of the scheme in which they are going to invest will prove to be. Because unlike active funds, the investment formula in index funds is linked to its benchmark index. Therefore, the dependence on the decisions of the fund manager is greatly reduced. Also, by investing in all the shares of the benchmark index in the same proportion, the full benefit of diversification is also available. And the low expense ratio of index funds works as a bonus. Actually, the two things that are very important to pay attention to while choosing the right index fund for investment include expense ratio. You can click here to know what is the second important thing.

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Understand every aspect before investing

Index funds can be considered less risky than investing directly in stocks due to diversification. But this does not mean that the risk in them is very low. In fact, due to investing entirely in equity, most index funds are placed in the ‘very high’ category on the riskometer. Therefore, before deciding to invest in them, definitely check your risk-taking capacity. It is also important to know that like other equity funds, it is better to invest in index funds for the long term. If your investment horizon is quite large, that is, you are ready to invest for 5 years or more, then only you should invest in equity funds.