Index funds are mutual funds or exchange-traded funds (ETFs) that aim to replicate the performance of a specific market index, such as the Nifty 50 or Sensex. By investing in these funds, you gain exposure to a diversified portfolio of stocks. In this article, we take a look at the best index funds based on their 3-year CAGR performance, helping you identify which funds have stood out in delivering consistent returns.
Name | AUM (₹ in crore) | CAGR 3Y (%) | Expense Ratio (%) |
Aditya Birla SL Nifty Smallcap 50 Index Fund | 251.93 | 29.95 | 0.46 |
Axis Nifty Smallcap 50 Index Fund | 536.59 | 29.73 | 0.27 |
Axis Nifty Midcap 50 Index Fund | 470.31 | 27.74 | 0.26 |
Motilal Oswal Nifty Smallcap 250 Index Fund | 978.30 | 27.37 | 0.33 |
ICICI Pru Nifty Smallcap 250 Index Fund | 541.12 | 27.13 | 0.3 |
Note: The list for index funds given here are as of July 22, 2025. The funds are sorted based on the 3yr CAGR.
Apart from the funds listed above, there are several other index funds, which delivered over 25% 3yr CAGR. Angel One also launched an index fund recently.
If you’re looking for index funds, the Angel One MF launched Angel One Nifty 50 Index Fund.
This fund is designed to mirror the performance of the Nifty Total Market Index, aiming to deliver returns (before expenses) that align closely with the index’s total return, subject to tracking errors. However, investors should note that the scheme does not guarantee the achievement of its investment objective.
With a minimum investment requirement of ₹1,000, the fund is best suited for investors seeking long-term capital growth through exposure to equity and equity-related instruments included in the Nifty Total Market Index.
Offering a simple and cost-efficient route to invest in India’s top 50 listed companies, it is an attractive choice for those looking to leverage passive investing while gaining broad market exposure.
Also Read: How ₹5,000 Monthly Investment Can Become ₹25 Lakh?
Index funds offer a straightforward way to gain diversified exposure to the stock market, which can be suitable for both new and seasoned investors. For those seeking long-term capital growth with minimal effort, these options, along with new launches like the Angel One Nifty 50 Index Fund, present opportunities to build a balanced, growth-oriented portfolio.
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 are subject to market risks, read all scheme-related documents carefully.
Published on: Jul 22, 2025, 2:24 PM IST
Nikitha Devi
Nikitha is a content creator with 7+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.
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