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Best index fund
Top 12 Index fund to buy in 2024 for long term: The most cost-effective and passive way to invest in stock markets is through Index Funds. These funds are designed to replicate the performance of underlying indexes such as the NIFTY or SENSEX. Index Funds are highly recommended by legendary investors like Warren Buffett, especially for retail investors, for several reasons:
- Low Costs: Index Funds typically have lower expense ratios compared to actively managed funds. This means you pay fewer fees over time, allowing more of your returns to compound.
- Eliminate Bias: Index Funds follow a predetermined set of rules based on the index they track. This eliminates the influence of fund managers’ biases, emotional decisions, or active trading strategies that may not always beat the market.
- Diversification: Investing in an Index Fund gives you exposure to a broad range of top companies within the chosen index. This diversification reduces the risk associated with holding individual stocks.
- Automated Portfolio: Index Funds offer an automated way to build an equity portfolio of top companies. You don’t need to constantly monitor and make investment decisions; you simply mirror the performance of the index.
- Long-Term Focus: Index Funds are ideal for a buy-and-hold strategy over the long term, typically recommended for a minimum of 5 years or more. This aligns with the historical trend of stock markets, where long-term investments tend to outperform short-term ones.
- Consistent Returns: While Index Funds may not outperform the market, they aim to deliver returns that closely track the index. Over the long term, this can provide returns that often surpass those of traditional fixed deposits.
By investing in Index Funds, you can effectively mirror the returns of popular indexes like SENSEX or NIFTY without the need for active management or frequent trading. This approach is particularly suitable for investors with a long-term perspective who seek a hassle-free and cost-efficient way to grow their wealth in the stock market.
Please note that investing in any financial instrument carries inherent risks, and it’s important to do your own research or consult with a financial advisor to ensure that your investment choices align with your financial goals and risk tolerance.
Best 12 index fund to buy in 2024 for long term
|Fund Name||AUM (in Crores)||Min. Investment (in Rupees)||Current Value (in Lakhs)||Annual Return (%)|
|Bandhan Nifty 50 Index Fund||₹867||₹100||₹8.97||+16.12|
|UTI Nifty 50 Index Fund||₹12,092||₹500||₹8.94||+16.00|
|ICICI Prudential Nifty 50 Index Fund||₹4,977||₹105||₹8.93||+15.97|
|Nippon India Index Nifty 50||₹998||₹500||₹8.92||+15.92|
|HDFC Index Fund Nifty 50 Plan||₹9,446||₹105||₹8.92||+15.92|
|Nippon India Index S&P BSE Sensex||₹498||₹500||₹8.92||+15.92|
|Tata Nifty 50 Index Fund||₹477||₹500||₹8.92||+15.92|
|SBI Nifty Index Fund||₹4,863||₹500||₹8.91||+15.87|
|HDFC Index S&P BSE Sensex Fund||₹5,298||₹300||₹8.91||+15.85|
|Aditya Birla Sun Life Nifty 50 Index Fund||₹642||₹105||₹8.89||+15.74|
|Franklin India NSE Nifty 50 Index||₹541||₹500||₹8.87||+15.67|
|Tata S&P BSE Sensex Index Fund||₹263||₹500||₹8.86||+15.63|
Please note that these returns are based on the past 5 years and may not be indicative of future performance. Additionally, the minimum investment amounts and expense ratios vary for each fund, so it’s essential to consider these factors when making investment decisions.
Best 12 index fund to buy in 2024 details
- Bandhan Nifty 50 Index Fund: With an AUM of ₹867 Crores, it offers a cost-effective way to track NIFTY 50, delivering a consistent annual return of +16.12%. The minimum investment is ₹100.
- UTI Nifty 50 Index Fund: One of the largest with ₹12,092 Crores AUM, it mirrors NIFTY 50 and provides a solid +16.00% annual return. The minimum investment required is ₹500.
- ICICI Prudential Nifty 50 Index Fund: A reliable choice with ₹4,977 Crores AUM, it closely follows NIFTY 50, delivering an annual return of +15.97%. The minimum investment is ₹105.
- Nippon India Index Nifty 50: With ₹998 Crores AUM, it tracks NIFTY 50 and offers an annual return of +15.92%. The minimum investment required is ₹500.
- HDFC Index Fund Nifty 50 Plan: A substantial fund with ₹9,446 Crores AUM, it mimics NIFTY 50 and provides an annual return of +15.92%. The minimum investment is ₹105.
- Nippon India Index S&P BSE Sensex: Managing ₹498 Crores AUM, it tracks the S&P BSE Sensex and yields an annual return of +15.92%. The minimum investment is ₹500.
- Tata Nifty 50 Index Fund: With ₹477 Crores AUM, it follows NIFTY 50 closely, offering an annual return of +15.92%. The minimum investment required is ₹500.
- SBI Nifty Index Fund: A significant fund with ₹4,863 Crores AUM, it tracks NIFTY 50 and delivers an annual return of +15.87%. The minimum investment is ₹500.
- HDFC Index S&P BSE Sensex Fund: Managing ₹5,298 Crores AUM, it tracks the S&P BSE Sensex and offers an annual return of +15.85%. The minimum investment is ₹300.
- Aditya Birla Sun Life Nifty 50 Index Fund: With ₹642 Crores AUM, it mirrors NIFTY 50 and provides an annual return of +15.74%. The minimum investment required is ₹105.
- Franklin India NSE Nifty 50 Index: Managing ₹541 Crores AUM, it tracks NIFTY 50 and yields an annual return of +15.67%. The minimum investment is ₹500.
- Tata S&P BSE Sensex Index Fund: With ₹263 Crores AUM, it follows the S&P BSE Sensex, offering an annual return of +15.63%. The minimum investment is ₹500.
These Index Funds primarily focus on tracking popular Indian stock market indices and aim to provide investors with returns that closely mirror the performance of these benchmarks.
FAQ on Best 12 index fund to buy in 2024 for long term
1. What are Index Funds?
Index Funds are investment funds that aim to mimic the performance of a specific stock market index, such as the NIFTY 50 or SENSEX. They provide diversification and aim to deliver returns similar to the chosen index.
2. Why invest in Index Funds?
Investors choose Index Funds for their low costs, diversification, and the potential to achieve competitive returns over the long term.
3. Are Index Funds suitable for long-term investing?
Yes, Index Funds are often recommended for long-term investors looking to hold investments for 5 years or more due to their consistency and historical performance.
4. How do I invest in Index Funds?
To invest in Index Funds, you can open an account with a mutual fund company or brokerage, complete the necessary paperwork, and invest the minimum required amount.
5. What are the risks with Index Funds?
While they have lower risk compared to many other investments, Index Funds are not entirely risk-free. They are subject to market fluctuations, and there may be a slight tracking error between fund returns and the index due to fees and other factors.