Index Funds are a type of mutual fund, which builds their portfolio by tracking the standard marketplace indices like The Sensex & Nifty 50. The primary goal of index funds is not to surpass the target returns, but to become equal to it. This is why the returns in index funds are predictable and the risk involved is lower as compared to other investment options. Moreover, these funds don’t require active management and that’s why the expenses need to manage these funds are quite low.
To provide you with a better idea, here are the top index funds in India.
Top Index Funds In India To Invest In 2019
UTI Nifty Index Fund –These funds are a type of mutual fund that is invested in the shares of businesses with Nifty 50 index. Thus, these funds aim to match returns with the targeted Nifty 50 benchmark. The risk involved in these funds is moderately high. It’s a good investment option for investors with long-term investment plans i.e. 5 years or more. The expected yearly return in this scheme is approximately 13.52%.
HDFC Index Fund Nifty 50 – This fund scheme is open-ended in nature and its goal is to reproduce the target Nifty 50 index. These funds are passively managed and thus, the expense ratio for fund management is low. The investments are made into stocks with a similar value. The risk involved is average high and the expected yearly return is 13.35%.
ICICI Prudential Nifty Index Fund – This is another open-ended fund investment scheme focused on reproducing the benchmark of the primary Nifty 50 index. The investments are made in the shares of companies with the Nifty 50 index. The risk involved in these funds is moderately high. The expected annual return is roughly 13.74%.
SBI Nifty Index Fund – These are also open-ended funds that are invested in the stocks of organizations involving Nifty 50 indices. The ultimate objective of this scheme is to reach the targeted Nifty index and replicate the returns. The risk involved in this scheme is fairly high and these offer a return of 13% annually.
ICICI Prudential Nifty Next 50 Index Fund – This fund investment scheme involves investing in businesses that include their shares in the Nifty Next 50 index. Therefore, the main goal of this scheme is to reproduce the returns equivalent to Nifty Next 50 indices. The risk of investing in these funds is fairly high and the expected annual returns are approximately 12.69%.
How To Choose The Best Option?
Choosing the most suitable option out of these top index fundscan be difficult for you. Thus, here are some tips to choose the best option for you.
Perform thorough market research to check the performance of all these funds in the past.
Ask a financial expert to help you choose the best scheme according to your requirements and expectations.
Check the lock-in period, risk factors and anticipated returns to find the best available choice for you.
Thus, these were the best index funds to invest your money in the year 2019.