A Nifty 50 Index Fund is a passive investment option that mirrors the performance of the Nifty 50 Index, which consists of the top 50 large-cap companies listed on the National Stock Exchange (NSE). These companies span across various sectors like banking, IT, automobile, FMCG, and more.
Over the past 10 years, the Nifty 50 Index has shown consistent growth. As of June 2025, the index has delivered a compound annual growth rate (CAGR) of approximately 13.5%, where it is 21.15% for 5 years and 18.94% for 3 years.
If you had invested ₹10,000 in a Nifty 50 Index Fund in June 2015, assuming a CAGR of 13.5%, your investment would have grown to around ₹35,500 by June 2025.
If you’re looking for index funds, the Angel One MF launched Angel One Nifty 50 Index Fund.
This fund aims to replicate the performance of the Nifty Total Market Index, targeting returns (before expenses) that closely match the total return of the index, subject to tracking errors. However, it's important to note that there is no guarantee the scheme will achieve its investment objective.
With a minimum investment of ₹1,000, this fund is suited for investors seeking long-term capital growth and wanting exposure to equity and equity-related instruments that form part of the Nifty Total Market Index.
It offers a convenient and cost-effective way to invest in India’s top 50 listed companies, making it ideal for those looking to benefit from passive investing with broad market exposure.
Also Read: How ₹5,000 Monthly Investment Can Become ₹25 Lakh??
The power of compounding and market participation through economic cycles contributes to returns over time. Investors who remain disciplined and avoid timing the market are more likely to reap the benefits of long-term growth. Additionally, index funds have lower risks compared to individual stocks, as they are diversified across sectors and companies.
A ₹10,000 investment in a Nifty 50 Index Fund 10 years ago could have grown to nearly ₹35,000 by 2025. This demonstrates the power of patience, compounding, and the effectiveness of low-cost, passive investment strategies. For long-term goals like retirement or wealth creation, Nifty 50 Index Funds can be an option.
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: Jun 27, 2025, 10:06 AM 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.
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