Investing in index funds has become one of the most popular strategies for both beginner and experienced investors looking for a simple, cost-effective way to participate in the stock market. An index fund is a type of mutual fund that aims to replicate the performance of a specific market index, such as the Nifty 50.
Rather than trying to outperform the market through active stock picking or timing, index funds follow a passive investment strategy by holding all—or a representative sample—of the securities in the index they track. In this read, we will explore the best index funds in India for June 2025.
Name | AUM | Expense Ratio | CAGR 5Y |
Motilal Oswal Nifty Small Cap 150 Index Fund | 2,126.13 | 0.30 | 32.17 |
DSP Nifty 50 Equal Weight Index Fund | 2,068.47 | 0.39 | 25.02 |
Motilal Oswal Nifty 500 Index Fund | 2,358.60 | 0.21 | 23.16 |
UTI Nifty Next 50 Index Fund | 5,036.87 | 0.35 | 22.36 |
ICICI Pru Nifty Next 50 Index Fund | 7,134.20 | 0.31 | 22.22 |
Note: The Index Funds mentioned above have been selected and sorted based on 5Y CAGR as of June 4, 2025
Also Read: Best Mutual Funds for Lumpsum Investment for June 2025 - SBI PSU, HDFC Infra Fund & More
Index funds offer a straightforward, low-cost, and effective way to participate in the stock market with broad diversification and reduced risk. By mirroring the performance of established market indexes, they provide consistent returns over the long term without the complexities and higher fees associated with active management.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jun 4, 2025, 2:01 PM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
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