Best Index Funds
Index funds and ETFs must keep at least 95% in the securities of the index they track, 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 and any tracking difference.
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 06 Oct 2026, ICICI Prudential NASDAQ 100 Index Fund (Direct plan, Growth option) leads index funds on 3-year CAGR at +34.16%, followed by Motilal Oswal S&P 500 Index Fund at +28.39% and ICICI Prudential Nifty Pharma Index Fund at +20.68%. Across 384 index funds the category averaged +9.39% over three years, at an average expense ratio of 0.49%. 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 | ★★★★☆ | +35.6% | +34.2% | +21.2% | 0.63% | ₹3,572Cr |
| 2 | Motilal Oswal S&P 500 Index Fund Motilal Oswal | ★★★★☆ | +26.2% | +28.4% | +18.7% | 0.64% | ₹4,581Cr |
| 3 | ICICI Prudential Nifty Pharma Index Fund ICICI Prudential | ★★★★★ | +22.0% | +20.7% | — | 0.51% | ₹150.77Cr |
| 4 | UTI Nifty 500 Value 50 Index Fund UTI | ★★★★☆ | +4.3% | +19.9% | — | 0.73% | ₹830.22Cr |
| 5 | Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund Edelweiss | ★★★★★ | +17.1% | +19.2% | +13.8% | 0.55% | ₹195.18Cr |
| 6 | Motilal Oswal BSE Enhanced Value Index Fund Motilal Oswal | ★★★★☆ | -1.1% | +18.7% | — | 0.55% | ₹2,228Cr |
| 7 | Aditya Birla Sun Life Nifty Smallcap 50 Index Fund Aditya Birla Sun Life | ★★★★☆ | +13.0% | +17.7% | +12.5% | 0.57% | ₹354.15Cr |
| 8 | Kotak Nifty Smallcap 50 Index Fund Kotak Mahindra | ★★★★☆ | +12.6% | +17.6% | — | 0.34% | ₹243.86Cr |
| 9 | Axis Nifty Smallcap 50 Index Fund Axis | ★★★★☆ | +13.1% | +17.5% | — | 0.45% | ₹757.50Cr |
| 10 | ICICI Prudential Nifty Auto Index Fund ICICI Prudential | ★★★★☆ | -4.2% | +17.4% | — | 0.36% | ₹241.22Cr |
| 11 | Navi Nifty India Manufacturing Index FundSmall fund Navi | ★★★★☆ | +3.3% | +17.1% | — | 0.58% | ₹83.35Cr |
| 12 | Edelweiss Nifty Next 50 Index Fund Edelweiss | ★★★★☆ | +2.8% | +16.6% | — | 0.25% | ₹294.24Cr |
| 13 | Kotak Nifty Next 50 Index Fund Kotak Mahindra | ★★★★☆ | +2.7% | +16.5% | +11.0% | 0.24% | ₹1,267Cr |
| 14 | LIC MF Nifty Next 50 Index Fund LIC | ★★★★☆ | +2.9% | +16.5% | — | 0.36% | ₹111.26Cr |
| 15 | UTI - Nifty Next 50 Index Fund UTI | ★★★★☆ | +2.6% | +16.5% | +10.8% | 0.46% | ₹7,368Cr |
| 16 | Axis Nifty Next 50 Index Fund Axis | ★★★★☆ | +2.7% | +16.5% | — | 0.26% | ₹537.27Cr |
| 17 | Motilal Oswal Nifty Next 50 Index Fund Motilal Oswal | ★★★★☆ | +2.6% | +16.5% | +10.9% | 0.45% | ₹510.58Cr |
| 18 | SBI Nifty Next 50 Index Fund SBI | ★★★★☆ | +2.6% | +16.4% | +10.8% | 0.43% | ₹2,302Cr |
| 19 | DSP Nifty Next 50 Index Fund DSP | ★★★★☆ | +2.7% | +16.4% | +10.9% | 0.39% | ₹1,385Cr |
| 20 | Navi Nifty Next 50 Index Fund Navi | ★★★★☆ | +2.6% | +16.4% | — | 0.29% | ₹1,309Cr |
NAV data as of 06 Oct 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.
Popular comparisons
Understand index funds
Index funds and ETFs: low-cost passive investing explained
What the Indian evidence says about active large-cap funds, tracking error versus tracking difference, and where indexing stops winning automatically.
Target maturity funds: a bond ladder wrapped as an index fund
A fixed maturity date is the whole design: hold to it and you get roughly the yield you bought at, whatever rates did. Sell early and that is gone.
Factor investing and smart beta: beyond market-cap weighting
A disclosed, rules-based tilt at a fraction of active cost — and active risk by another name, with long underperformance that is the reason the premium exists.
From the blog
Sensex index funds compared: returns and costs
07 Oct 2026
The 10 Sensex index funds with a year's record returned −9.68% to −10.24% to 6 October 2026. Costs run from 0.21% to 0.77%; HDFC's holds 69% of the money.
Nifty Next 50 index funds compared: returns and costs
04 Oct 2026
The Nifty Next 50 rose 1.31% in a year as the Nifty 50 fell 9.72%. The 17 index funds tracking it: 3-year returns of 15.47–15.90%, costs from 0.20%.
NPS returns by pension fund: Scheme E, C and G in 2026
02 Oct 2026
Ten NPS pension funds compared to 1 October 2026: Scheme E fell 6.2% in a year but returned 8.1% a year over five, ahead of the median Nifty 50 index fund.
Frequently asked questions
What are index funds?
Index funds and ETFs must keep at least 95% in the securities of the index they track, 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 and any tracking difference.
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 +34.16%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have index funds given?
The category has averaged +0.11% over 1 year, +9.39% annualized over 3 years, +8.66% 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.