Best Index Funds
Index funds and ETFs simply track a benchmark such as the Nifty 50 rather than trying to beat it. They charge far lower fees than active funds, and their return is the index's return minus that small cost.
Top index funds by 3Y returns
20Direct plan, Growth option — ranked by 3-year CAGR. Open a fund for NAV history, rolling returns, risk metrics and peer rank.
As of 20 Aug 2026, ICICI Prudential NASDAQ 100 Index Fund (Direct plan, Growth option) leads index funds on 3-year CAGR at +31.72%, followed by Motilal Oswal S&P 500 Index Fund at +26.53% and UTI Nifty 500 Value 50 Index Fund at +25.30%. Across 374 index funds the category averaged +11.46% over three years, at an average expense ratio of 0.47%. All figures are computed from public AMFI NAV history and recomputed daily; past returns do not predict future ones.
| 1 | ICICI Prudential NASDAQ 100 Index Fund ICICI Prudential | ★★★★☆ | +37.9% | +31.7% | — | 0.63% | ₹3,348Cr |
| 2 | Motilal Oswal S&P 500 Index Fund Motilal Oswal | ★★★★☆ | +31.7% | +26.5% | +17.9% | 0.62% | ₹4,500Cr |
| 3 | UTI Nifty 500 Value 50 Index Fund UTI | ★★★★☆ | +14.4% | +25.3% | — | 0.80% | ₹729.68Cr |
| 4 | ICICI Prudential Nifty Auto Index Fund ICICI Prudential | ★★★★☆ | +15.9% | +24.4% | — | 0.35% | ₹216.49Cr |
| 5 | Motilal Oswal BSE Enhanced Value Index Fund Motilal Oswal | ★★★★☆ | +10.1% | +24.3% | — | 0.52% | ₹2,077Cr |
| 6 | Kotak Nifty Smallcap 50 Index Fund Kotak Mahindra | ★★★★☆ | +13.9% | +22.9% | — | 0.35% | ₹201.40Cr |
| 7 | Axis Nifty Smallcap 50 Index Fund Axis | ★★★★☆ | +14.2% | +22.8% | — | 0.34% | ₹621.19Cr |
| 8 | Aditya Birla Sun Life Nifty Smallcap 50 Index Fund Aditya Birla Sun Life | ★★★★☆ | +14.1% | +22.8% | +15.0% | 0.58% | ₹299.55Cr |
| 9 | Navi Nifty India Manufacturing Index Fund Navi | ★★★★☆ | +14.2% | +20.2% | — | 0.57% | ₹75.50Cr |
| 10 | Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund Edelweiss | ★★★★★ | +22.6% | +20.0% | +14.2% | 0.56% | ₹195.49Cr |
| 11 | ICICI Prudential Nifty Pharma Index Fund ICICI Prudential | ★★★★★ | +20.3% | +20.0% | — | 0.52% | ₹121.63Cr |
| 12 | Motilal Oswal Nifty Microcap 250 Index Fund Motilal Oswal | ★★★☆☆ | +10.2% | +20.0% | — | 0.58% | ₹2,329Cr |
| 13 | Kotak Nifty Next 50 Index Fund Kotak Mahindra | ★★★★☆ | +9.6% | +19.9% | +14.3% | 0.26% | ₹1,100Cr |
| 14 | UTI - Nifty Next 50 Index Fund UTI | ★★★☆☆ | +9.5% | +19.9% | +14.1% | 0.44% | ₹6,630Cr |
| 15 | LIC MF Nifty Next 50 Index Fund LIC | ★★★★☆ | +9.8% | +19.9% | — | 0.32% | ₹103.89Cr |
| 16 | Edelweiss Nifty Next 50 Index Fund Edelweiss | ★★★★☆ | +9.6% | +19.9% | — | 0.23% | ₹261.99Cr |
| 17 | Motilal Oswal Nifty Next 50 Index Fund Motilal Oswal | ★★★★☆ | +9.5% | +19.8% | +14.1% | 0.41% | ₹456.53Cr |
| 18 | Axis Nifty Next 50 Index Fund Axis | ★★★★☆ | +9.7% | +19.8% | — | 0.22% | ₹481.51Cr |
| 19 | SBI Nifty Next 50 Index Fund SBI | ★★★★☆ | +9.5% | +19.8% | +14.1% | 0.37% | ₹2,032Cr |
| 20 | DSP Nifty Next 50 Index Fund DSP | ★★★★☆ | +9.5% | +19.8% | +14.1% | 0.37% | ₹1,273Cr |
NAV data as of 20 Aug 2026. Returns are CAGR for periods ≥1 year, computed from AMFI NAV history. Ratings are WealthTicker’s own, ranked within sub-category peers — not a SEBI or agency rating. See our methodology for every formula. This is data, not investment advice.
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Frequently asked questions
What are index funds?
Index funds and ETFs simply track a benchmark such as the Nifty 50 rather than trying to beat it. They charge far lower fees than active funds, and their return is the index's return minus that small cost.
Which is the best index fund right now?
ICICI Prudential NASDAQ 100 Index Fund by ICICI Prudential currently ranks first among index funds by 3-year CAGR at +31.72%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have index funds given?
The category has averaged +4.58% over 1 year, +11.46% annualized over 3 years, +11.37% annualized over 5 years — peer averages over the live funds in the category, computed from AMFI NAV history.
How are index funds taxed?
It depends on what the individual scheme holds, not on the category. A scheme holding more than 65% in Indian equity is taxed as equity (20% short-term, 12.5% long-term above ₹1.25 lakh a year); one holding more than 65% in debt is taxed at your slab rate whatever the holding period; anything in between is taxed at slab within 24 months and 12.5% after. Each fund's page states which rule applies to it.