Are you looking for an investment strategy that doesn’t require you to research stocks or time the market? It’s time you included index funds in your portfolio. These funds simply track the market; no active management or spending hours picking stocks.
If you’re looking for a hands-off approach to investing, check out the best index funds that we have curated for you in this guide.
Best Index Funds From Different Segments to Invest in 2025
Here’s the list of top-performing index funds from various categories for investing in 2025.
- Motilal Oswal Nifty Smallcap 250 Index Fund
If you’re aggressive with your investment strategy and are looking to explore the high-growth potential in smaller companies, this fund could be a compelling option.
It tracks the Nifty Smallcap 250 Index, giving you exposure to emerging businesses with the room for significant growth in the future. Some of the key sectors where this fund invests are industrials, financial services, healthcare, basic materials, and consumer cyclical.
- AUM: INR 791.62 crore
- NAV: INR 34.2747
- Expense ratio: 0.36%
- 1-Year return: – 2.84%
- 3-Year return: 17.61%
- 5-Year return: 33.38%
- DSP Nifty 50 Equal Weight Index Fund
Instead of having a few heavyweight stocks that dominate your portfolio, the DSP Nifty 50 Equal Weight Index Fund equally represents the 50 companies in the Nifty 50. This means you enjoy broader diversification without concentrating on a few stocks.
Some of the sectors where the fund invests include financial services, consumer cyclical, basic materials, technology, and consumer defense.
- AUM: INR 1,984.11 crore
- NAV: INR 24.9531
- Expense ratio: 0.39%
- 1-Year return: 6.84%
- 3-Year return: 16.51%
- 5-Year return: 25.82%
- UTI Nifty Next 50 Index Fund
The UTI Nifty Next 50 Index Fund presents you with an opportunity to invest in the future stars of the stock market.
Many of them have the potential to break into the top league, aka the Nifty 50. If you’re looking to balance stability and growth, this index fund will help you capture the momentum.
- AUM: INR 4,831.80 crore
- NAV: INR 23.7062
- Expense ratio: 0.35%
- 1-Year return: – 0.21%
- 3-Year return: 15.30%
- 5-Year return: 22.21%
- SBI Nifty 50 Index Fund
For conservative investors, SBI has been a dependable name in asset management. The SBI Nifty 50 Index Fund brings you a way to ride the growth trajectory of the Nifty 50.
With this mutual fund, you get exposure to the market leaders in India across various industries. With a low expense ratio and adequate diversification, investors can create a solid portfolio.
- AUM: INR 9,192.42 crore
- NAV: INR 224.3065
- Expense ratio: 0.22%
- 1-Year return: 8.71%
- 3-Year return: 13.53%
- 5-Year return: 20.84%
- HDFC NIFTY 50 Index Fund
The HDFC NIFTY 50 Index Fund offers yet another passive investment strategy backed by professionals. The best part is that you can create an SIP in this mutual fund starting from just INR 100.
Investors can also put a lump sum amount in this fund. A significant part of the assets is allocated to financial services, followed by technology, consumer cyclical, and energy.
- AUM: INR 19,046.30 crore
- NAV: INR 234.6191
- Expense ratio: 0.20%
- 1-Year return: 8.67%
- 3-Year return: 13.51%
- 5-Year return: 20.84%
Conclusion
Index funds eliminate the time-consuming stock-picking and guesswork out of investing. If you’re planning to create long-term wealth, this is a powerful tool to methodically plan and invest.In this guide, we have included Nifty 50 Index Funds, small-cap index funds, Nifty Equal Weight Index Funds, and other categories. Depending on your risk tolerance and approach to investment, you can choose the mutual funds.
