3 Equity Index Funds Deliver Strong 5-Year Performance Up to 28% Annualised Return

These 3 equity index funds have demonstrated exceptional 5-year performance with up to 28% annualised returns for the past 5 years. 

Motilal Oswal Nifty Smallcap 250 Leads with 28% Returns

The Motilal Oswal Nifty Smallcap 250 Index Fund-Reg(G) delivered the highest 5-year return of 27.88% with ₹970 crore AUM as of July 31, 2025 and 1.04% expense ratio. Motilal Oswal Nifty Smallcap 250 Index Fund Reg (G) aims to generate investment returns that, before fees and expenses, broadly correspond to the performance of the Nifty Smallcap 250 Index (Underlying Index), subject to tracking error.

Midcap Strategy Nearly Matches Smallcap Performance

The Motilal Oswal Nifty Midcap 150 Index Fund-Reg(G) achieved 26.89% 5-year returns with a larger ₹2,472.5 crore AUM as of July 31, 2025 and a 1.00% expense ratio. Motilal Oswal Nifty Midcap 150 Index Fund Reg (G) aims to generate investment returns that, before fees and expenses, broadly correspond to the performance of the Nifty 500 Index (Underlying Index), subject to tracking error. However, there is no assurance or guarantee that the Scheme’s investment objective will be achieved.

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DSP Equal Weight Index Fund 

The DSP Nifty 50 Equal Weight Index Fund-Reg(G) achieved 22.10% 5-year returns with ₹2,198.5 crore AUM as of July 31, 2025 and the lowest 0.92% expense ratio. DSP Nifty 50 Equal Weight Index Fund invests in companies that are constituents of NIFTY 50 Equal Weight Index (underlying Index) in the same proportion as in the index and seeks to generate returns that are commensurate (before fees and expenses) with the performance of the underlying Index, subject to tracking error.

Conclusion

The top 3 performing equity index funds demonstrate strong 5-year performance with Motilal Oswal's smallcap strategy leading at 27.88%, followed closely by midcap at 26.89%, and DSP's equal weight approach at 22.10%. With combined AUM exceeding ₹5,641 crore and expense ratios ranging from 0.92% to 1.04%, these funds showcase the effectiveness of systematic index investing across different market segments while maintaining cost efficiency.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or funds mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.

Investments in mutual funds are subject to market risks. Read all related documents carefully before investing.