Best Index Funds in September 2025: UTI Nifty Next 50, HDFC Nifty 50 Index FUnd and More Based on AUM

Index funds have gained popularity among both new and seasoned investors as a straightforward and low-cost way to invest in the stock market. These funds are designed to track the performance of a particular benchmark index, such as the Nifty 50.

Instead of depending on active stock selection or market timing, index funds adopt a passive investment strategy by replicating all, or a representative portion, of the securities within the chosen index. In this article, we take a look at some of the top-performing index funds in India as of September 2025 based on AUM.

Best Index Funds In September 2025 - Based on AUM

Note: The list of best Index Funds in September mentioned above has been selected from the AUM of above ₹5,000 and sorted based on AUM as of August 27, 2025. 

Overview of Best Index Funds In September 2025

1. UTI Nifty Next 50 Index Fund 

• NAV: ₹172.46
• 1M Returns: 0.34%
• 1Y Returns: 0.17%
• 52-Week High: ₹181.06
• 52-Week Low: ₹33.07
• CAGR: 12.90%

2. HDFC Nifty 50 Index Fund 

• NAV: ₹242.39
• 1M Returns: 0.69%
• 1Y Returns: 1.57%
• 52-Week High: ₹251.96
• 52-Week Low: ₹46.08
• CAGR: 13.11%

3. ICICI Pru Nifty 50 Index Fund

• NAV: ₹259.33
• 1M Returns: 0.34%
• 1Y Returns: 0.22%
• 52-Week High: ₹272.39
• 52-Week Low: ₹49.87
• CAGR: 12.96%

4. SBI Nifty Index Fund

• NAV: ₹229.34
• 1M Returns: 0.34%
• 1Y Returns: 0.24%
• 52-Week High: ₹240.93
• 52-Week Low: ₹45.30
• CAGR: 12.62%

5. HDFC BSE Sensex Index Fund

• NAV: ₹775.48
• 1M Returns: 0.35%
• 1Y Returns: 1.63%
• 52-Week High: ₹807.53
• 52-Week Low: ₹151.51
• CAGR: 13.15%

Key Points to Keep in Mind Before Investing in Index Funds

1. Set Clear Investment Goals

Begin by outlining your financial objectives, be it long-term wealth creation, retirement savings, or funding a future milestone. Having clarity ensures you can decide if index funds fit your time horizon and risk profile.

2. Understand Your Risk Tolerance

Since index funds replicate the broader market, they are subject to market ups and downs. Assess how much volatility you are comfortable handling, particularly during market declines.

 3. Check the Expense Ratio

A key benefit of index funds is their affordability. Still, expense ratios differ across funds, and even minor variations can add up over time, affecting your overall returns.

 4. Look at Tracking Error

Tracking error shows how closely a fund mirrors its underlying index. A lower tracking error means the fund is more accurate in reflecting the index’s movements.

 5. Pick the Right Index

Index funds don’t all follow the same benchmark—some track large-cap indices, while others focus on mid-caps, global markets, or specific sectors. Choose one that aligns with your financial plan and strategy.

Also Read: HDFC vs Franklin Flexi Cap Fund: Comparing Returns Over 30 Years!

Conclusion

Index funds provide a simple and cost-effective way to participate in the stock market. By passively following market benchmarks, they offer broad diversification and steady returns, making them an excellent option for long-term investors who value simplicity and low management costs.

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.