These Index Funds Delivered Returns Upto 27%: Do You Own Any?

In the June 2025 quarter, passive investment funds saw notable activity. Index ETFs attracted significant inflows, recording net investments of ₹23,988 Crore, followed by index mutual funds, which garnered ₹3,703 Crore. Gold ETFs also saw positive inflows totalling ₹2,367 Crore during this period.

When looking at the overall asset under management (AUM) share, passive funds accounted for 17.02% in the latest quarter, showing a slight dip compared to 17.45%, 16.61%, and 17.08% seen in the three previous sequential quarters. Over the past year, the AUM share of passive funds has remained relatively stable, indicating a steady investor interest in these cost-effective investment avenues.

One noteworthy option within the passive fund universe is the Angel One Nifty 50 Index Fund, which aims to closely track the Nifty 50 index while maintaining minimal tracking error and offering competitive expense ratios. This fund presents a compelling choice for investors seeking exposure to India’s top 50 blue-chip companies with efficiency and affordability.

Top Index Funds in India

Here is a list of index funds that delivered returns up to 27% in the past 3 years:

Note: The Index Funds mentioned above have been selected and sorted based on 3Y CAGR as of July 14, 2025 

The small-cap and mid-cap index funds have significantly outperformed their large-cap counterparts over the past three years in terms of CAGR. The Nippon India Nifty Smallcap 250 Index Fund tops the list with a 27.73% CAGR, suggesting strong performance in the small-cap segment, albeit at a slightly higher expense ratio of 0.35%. Both mid-cap funds, Motilal Oswal and Nippon India Nifty Midcap 150, closely follow, indicating consistent mid-cap growth, while also maintaining relatively low expense ratios (0.26%–0.30%), making them cost-effective options.

In contrast, the UTI Nifty Next 50 Index Fund, despite having the largest AUM of ₹8,542.91 crore, lags in returns with a 23.21% CAGR, possibly reflecting a shift in investor preference away from traditional large-cap or next-50 stocks. The DSP Nifty 50 Equal Weight Index Fund, with the lowest AUM among the group, also shows the lowest CAGR (20.77%), highlighting the relatively subdued performance of equal-weighted large-cap strategies during this period.

Also Read: Best Index Funds in July 2025: UTI Nifty 50 Index Fund, ICICI Pru Nifty Next 50 Index Fund and More- Based on 5-Yr CAGR

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 in the securities market are subject to market risks, read all the related documents carefully before investing.