Same index, different results
Every fund in this post holds the same 50 companies in the same proportions. Over the three years to 9 June 2026, they still returned anything from 7.86% to 8.79% a year.
The index itself, with dividends reinvested, returned an estimated 9.18% a year. Every fund trailed it.
The figures are for each fund's Direct plan, Growth option, computed from daily NAVs to Tuesday 9 June. NSE's official Nifty 50 Total Return Index isn't in our database, so the index figure is our estimate, rebuilt from NSE's daily price and dividend yield.
The tracking difference, fund by fund
The shortfall between a fund and its index over a period is its tracking difference. It is mostly the fund's running costs, plus the drag of any cash it holds.
| Fund (Direct, Growth) | Year to date | 1 year | 3 years | 5 years | Lag vs index, 3 years |
|---|---|---|---|---|---|
| Motilal Oswal Nifty 50 Index | −10.85% | −6.56% | 8.79% | 9.29% | 0.39 |
| Navi Nifty 50 Index | −10.84% | −6.55% | 8.78% | 0.40 | |
| Axis Nifty 50 Index | −10.83% | −6.56% | 8.77% | 0.41 | |
| Nippon India Index Nifty 50 | −10.83% | −6.54% | 8.77% | 9.27% | 0.41 |
| Bandhan Nifty 50 Index | −10.86% | −6.58% | 8.76% | 9.31% | 0.42 |
| DSP Nifty 50 Index | −10.85% | −6.58% | 8.76% | 9.27% | 0.42 |
| UTI Nifty 50 Index | −10.88% | −6.62% | 8.74% | 9.27% | 0.44 |
| Aditya Birla Sun Life Nifty 50 Index | −10.88% | −6.62% | 8.73% | 9.20% | 0.45 |
| HSBC Nifty 50 Index | −10.90% | −6.63% | 8.72% | 0.46 | |
| Edelweiss Nifty 50 Index | −10.86% | −6.54% | 8.71% | 0.47 | |
| SBI Nifty Index | −10.90% | −6.69% | 8.70% | 9.24% | 0.48 |
| HDFC Nifty 50 Index | −10.89% | −6.66% | 8.69% | 9.22% | 0.49 |
| ICICI Prudential Nifty 50 Index | −10.87% | −6.64% | 8.69% | 9.24% | 0.49 |
| Franklin India NSE Nifty 50 Index | −10.89% | −6.60% | 8.68% | 9.18% | 0.50 |
| Kotak Nifty 50 Index | −10.86% | −6.57% | 8.63% | 9.02% | 0.55 |
| Tata Nifty 50 Index | −10.97% | −6.71% | 8.62% | 9.21% | 0.56 |
| LIC MF Nifty 50 Index | −11.01% | −6.98% | 8.53% | 9.13% | 0.65 |
| Taurus Nifty 50 Index | −11.18% | −7.24% | 7.86% | 8.39% | 1.32 |
Three and five years are compound annual rates; the year to date and one year are plain percentage changes. The lag is 9.18% minus the fund's three-year return, in percentage points a year.
The first 16 are packed within 0.17 points of each other. Taurus is the clear outlier, more than a point a year behind the index over three years and over five.
The index, measured two ways
| Period | Price index | Estimated with dividends | Fund range |
|---|---|---|---|
| Year to date | −11.05% | −10.54% | −11.18% to −10.69% |
| 1 year | −7.41% | −6.20% | −7.24% to −6.54% |
| 3 years | 7.78% a year | 9.18% a year | 7.86% to 8.79% a year |
| 5 years | 8.25% a year | 9.65% a year | 8.39% to 9.31% a year |
Funds counted: 25 year to date (excluding one launched in April), 22 over one year, 18 over three years and 14 over five.
The comparison most people make is with the price index, the number quoted on the news. Against that, every fund in every period except the year to date looks like it beat the index. It didn't. The price index leaves out dividends, which added about 1.4 points a year over the last three years, and the funds collect them.
The newer funds
Eight funds are too young for a three-year number, and seven of them have run for the whole of 2026. Their year-to-date returns run from −10.69% for Bajaj Finserv Nifty 50 Index to −10.95% for Groww and Baroda BNP Paribas. The older funds' range is −10.83% to −11.18%, so none of the newcomers is tracking unusually badly yet.
Bajaj Finserv is an odd case: best of all 25 this year, but at −6.91% over one year it is near the bottom. One year is too short for a young fund's tracking record to settle.
What this does not tell you
Our index figure is an estimate. It can differ from NSE's official total return index by a few tenths of a point a year. That would shift every lag in the table by the same amount, but not the order.
Past tracking reflects past costs. A fund that has cut its charges will lag less from here than its three-year record suggests, and one that has raised them, more.
A tracking difference is not the whole story. Fund size, and how easily you can get in and out, matter too. None of this is advice to buy or sell any fund.
Where to go from here
Index funds and ETFs covers how these funds work, and what a fund really costs explains the charges behind the lag. The index funds that actually track screen filters on tracking, and the index fund page lists every scheme.
The same kind of gap, between a fund's two plans, is in Direct vs Regular: the return gap.
Frequently asked questions
How much do Nifty 50 index funds lag the index?
Over the three years to 9 June 2026, the 18 Nifty 50 index funds with a full record (Direct plan, Growth option) returned between 7.86% and 8.79% a year. Our estimate of the Nifty 50's total return over the same period is 9.18% a year, so the funds trailed it by between 0.39 and 1.32 percentage points a year.
Do all Nifty 50 index funds give the same return?
Nearly, but not quite. Over three years to 9 June 2026, 16 of the 18 funds with a full record returned between 8.62% and 8.79% a year, within 0.17 points of each other. The other two were further behind: LIC MF Nifty 50 Index at 8.53% a year and Taurus Nifty 50 Index at 7.86%.
Why does my Nifty 50 index fund beat the Nifty 50?
Because the Nifty 50 figure usually quoted is a price index, which leaves out dividends. Over the year to 9 June 2026 the price index fell 7.41%, while every Nifty 50 index fund with a one-year record fell less, between 6.54% and 7.24%. Against our estimate of the index with dividends reinvested, a fall of 6.20%, every fund did worse.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.
Keep reading
Direct vs regular plans: the 1.16-point equity fee gap
A regular equity plan costs a median 1.16 points a year more than its direct twin, on AMFI's September 2026 data. Over ten years, direct ended 10.2% ahead.
Nifty 50 index funds: tracking error and the cost gap
14 Nifty 50 index funds returned 5.50% to 6.20% a year over five years to 30 September 2026, against an estimated 6.49% for the index. Fees explain the gap.
Active large caps vs index funds: 22 of 27 won on 5 years
To 16 June 2026, 22 of 27 active large-cap funds beat the median Nifty 50 index fund's 9.71% a year over five years. Over ten years, 15 of 22 did.