Top 10 index funds having the lowest tracking error
Before investing in index funds, it is crucial to check its expense ratio and tracking error. Here are the top 10 index funds having the lowest tracking error.
We have seen massive growth in the AUM of index funds, which reflects that more and more people are considering them as a great investment avenue. In the last year, assets under management (AUM) of index funds have witnessed a growth of almost 162 per cent. In November 2020, index funds saw a net outflow of Rs 222.58 crore, while in October 2021 it got the net inflows to the tune of Rs 3,514.21 crore. This means a lot of investors are considering index funds over actively managed funds.
As per the S&P Indices versus Active Funds (SPIVA) India scorecard for H1 FY22, 68.97, 80, 72.84 and 65.19 per cent of the actively managed large-cap funds underperformed S&P BSE 100 in 1-year, 3-year, 5-year and 10-year period respectively. Therefore, it is safe to conclude that the consistent underperformance of actively managed large-cap funds with respect to their benchmark indices have led people to consider large-cap index funds over them. Having said that, when you consider investing in index funds, it is prudent to check whether the tracking error and expense ratio is on the lower end.
Here we present you the list of the top 10 index funds having the lowest tracking error.
|
Name
|
Expense Ratio (%)
|
Tracking Error (%)
|
AUM (in Rs Cr)
|
NAV (Rs)
|
Benchmark
|
|
HDFC Index Fund – Sensex Plan
|
0.20
|
0.06
|
2,800
|
521.68
|
S&P BSE Sensex TRI
|
|
SBI Nifty Index Fund
|
0.17
|
0.10
|
1,530
|
152.29
|
Nifty 50 TRI
|
|
HDFC Index Fund-NIFTY 50 Plan
|
0.20
|
0.10
|
4,100
|
159.41
|
Nifty 50 TRI
|
|
UTI Nifty Index Fund
|
0.20
|
0.11
|
5,380
|
114.46
|
Nifty 50 TRI
|
|
Nippon India Index Fund – Sensex Plan
|
0.15
|
0.12
|
202
|
29.63
|
S&P BSE Sensex TRI
|
|
DSP Nifty 50 Index Fund
|
0.21
|
0.13
|
122
|
15.36
|
Nifty 50 TRI
|
|
ICICI Prudential Nifty Next 50 Index Fund
|
0.30
|
0.13
|
1,660
|
38.59
|
Nifty Next 50 TRI
|
|
ICICI Prudential Nifty Index Fund
|
0.17
|
0.14
|
2,250
|
172.33
|
Nifty 50 TRI
|
|
IDFC Nifty Fund
|
0.16
|
0.15
|
357
|
36.30
|
Nifty 50 TRI
|
|
LIC MF Index Fund – Sensex Plan
|
0.60
|
0.15
|
45
|
111.01
|
S&P BSE Sensex TRI
|