Building wealth doesn’t always require large sums investments. With consistent investing and the power of compounding, even a small monthly contribution can grow significantly over time. Mutual funds provide an opportunity to invest a small amount. Index funds are one of the mutual funds’ categories that are well-known.
Index funds are mutual funds that track a market index, such as the Nifty 50, and aim to replicate its performance. Instead of actively picking stocks, index funds invest in all the companies listed in the index in the same proportion. This passive investment approach offers multiple advantages, like diversification, low cost and steady growth. Historically, the index funds have delivered returns between 10-12% per annum.
Notably, as these funds try to mirror the performance of the market index, ss the broader market grows, the investment can also grow.
Let’s assume you invest ₹3,000 every month in an index fund with an average annual return of 12%. Over 17 years, here’s what your investment could look like:
This means you could turn ₹3,000 per month into nearly ₹20 lakh, without picking individual stocks or timing the market. The key ingredients? Time, discipline, and a reliable investment vehicle.
Note: Returns provided here are based on assumptions. Actual returns may vary depending on market conditions.
If you’re looking to begin or expand your index fund investments, the Angel One MF recently launched Angel One Nifty 50 Index Fund.
The investment objective of the fund is to mirror the Nifty Total Market Index with an aim to provide returns before expenses that track the total return of Nifty Total Market Index, subject to Tracking Errors. However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved.
The minimum investment of the fund is ₹1,000. This product can be suitable for investors looking for long-term capital appreciation and seeking exposure to equity and equity-related securities that make up the Nifty Total Market Index.
This fund allows investors to tap into the performance of India’s top 50 listed companies with the convenience and cost-efficiency of passive investing.
Also Read: Nifty 50 Index Fund vs. Nifty Next 50 Index Fund: Which Suits You?
Before investing, consider whether the option aligns with your long-term financial goals, such as retirement planning or funding your child’s education. Assess your risk tolerance and investment horizon carefully to ensure it fits within your overall financial strategy.
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: May 22, 2025, 2:41 PM IST
Nikitha Devi
Nikitha is a content creator with 6+ 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.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
