Best Index Funds in January 2026: UTI Nifty 50, HDFC Nifty 50 and SBI Nifty Index Fund Based on 10-Yr CAGR

Index funds are becoming a popular choice for both new and experienced investors as they offer an easy and low-cost way to invest in the stock market. These funds are designed to track the performance of a benchmark index such as the Nifty 50.

Rather than selecting individual stocks or trying to predict market movements, index funds follow a passive investment strategy by investing in all or most of the stocks included in the index. In this article, we highlight some of the top-performing index funds in India for January 2026, based on their 10-year CAGR.

Best Index Funds In January 2026 - Based on 10-Year CAGR

Note: The list of best Index Funds in Jan 2026 is sorted based on 10Y CAGR as of Jan 16, 2026. 

Key Points to Keep in Mind Before Investing in Index Funds

Set Your Investment Goals

Begin by understanding your financial objectives, such as building long-term wealth, planning for retirement, or saving for a future need. Having clear goals helps you decide whether index funds are right for you and how long you should stay invested.

Understand Your Risk Tolerance

Index funds rise and fall with the overall market. It’s important to assess how comfortable you are with market ups and downs, especially during periods of market decline.

Compare Expense Ratios

Low cost is a major benefit of index funds, but expense ratios differ from one fund to another. Even a small cost difference can significantly affect your returns over the long term.

Look at the Tracking Error

Tracking error shows how closely a fund matches its benchmark index. A lower tracking error indicates that the fund is more accurately following the index.

Select the Right Index

Index funds can track different indices, such as large-cap, mid-cap, global, or sector-based indices. Choose one that aligns with your financial goals and investment strategy.

Also Read: Angel One Launches India’s First Smart Beta Nifty Total Market MQ50 ETF and Index Fund!

Conclusion

Index funds offer an easy and cost-effective way to invest in the stock market. Since they track market indices, they provide diversification and steady long-term growth. This makes them suitable for investors who prefer a simple, low-maintenance investment approach.

You can start your investing journey with newer options such as the Angel One Nifty 50.

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.