Nifty 50 Index Fund

With Nifty 50 Index Fund, your money is invested in India’s largest 50 stocks under the Nifty 50 Index of the National Stock Exchange. As an investor, you get to invest in the country's top companies across diversified sectors for long-term and stable growth and returns.

What are Nifty 50 Index Funds?

A Nifty 50 scheme is an index mutual fund, which invests in the stocks of companies listed on NSE’s flagship index, the Nifty 50.  Referred to as a Nifty 50 index fund, its goal is to mirror the performance of Nifty 50 through passive investment. The fund manager monitors the index and adjusts the fund's holdings by the index composition.

Due to its passive approach, the total expense ratio for managing index funds is lower than actively managed funds. Consequently, the Nifty index fund serves as a cost-effective investment choice, offering returns aligned with the broader market. Index funds have a long history of delivering superior returns than most active funds over long time horizons. 

Best Nifty 50 Index Funds

List of the top-performing nifty 50 index funds sorted by returns with their AUM and Expense Ratio.

Advantages of investing in Nifty 50 Index Fund

Low Cost

The cost that you need to bear for investing your money in Nifty 50 index funds is very low. Since the fund managers do not require any analysts or researchers to make decisions regarding the purchase or selling of stocks, no additional cost is necessary. This is why index funds charge some of the lowest expenses among mutual funds. 

Diversified Portfolio

Nifty 50 index funds invest in the top 50 companies in India. This means your money is invested across diversified sectors and companies, helping you to get exposure to many successful businesses. It also helps in reducing the risk involved in your portfolio, making it suitable for first-time investors.

Low Risk

Nifty index funds intrinsically carry lower risk than actively managed products. These funds imitate the performance of the Nifty 50 index, which includes 50 well-known and reliable corporations from a variety of industries. The index's diversification serves to disperse risk, mitigating the impact of bad individual stock performance.

Who should consider investing in Nifty 50 Index Fund

First Time Investors

The Nifty 50 index funds are great for first-time investors due to their simplicity. These funds mirror the performance of the Nifty 50 index, which includes the top 50 businesses on the National Stock Exchange (NSE). This gives investors broad market exposure without requiring the hassles of research and stock selection. 

Investors with a Low-Risk Appetite

The Nifty 50 index consists of established and well-performing corporations, which reduces the risk involved with individual stock selection. Investors with a cautious attitude or a low-risk tolerance will find these schemes appealing since they provide consistency and historically consistent performance.

Long Term Investors

Nifty 50 index funds are ideal for long-term investors. These funds have demonstrated reliability and continuous growth over a long time, in line with the overall good trend of the Indian economy. Long-term investments in these funds can take advantage of compounding.