Flash Sale! to get a free eCookbook with our top 25 recipes.

Wow!! Everything You Need to invest in low cost index funds by One Click

There are multiple active fund manager managed mutual funds available in India. Selecting one from 1000 of mutual funds are hard and complex. In India, there are two popular indices Sensex and Nifty 50. Sensex index has 30 stocks and Nifty index has 50 stocks.

When choosing an index fund, make sure you go for the one with higher assets under management (AUMs). Higher AUM is better in case there is redemption pressure on the fund. Ensure that the fund you choose also has a low expense ratio. Zero down on a fund that has returns similar to that of the index it’s tracking.

Index funds are considered one of the most secure equity funds as their portfolio consists of blue-chip stocks. These are the stocks of well-established companies with an excellent track record and perfect choice for long term wealth creation.

Sensex represents 30 of the largest and most well-capitalized stocks on the BSE

Sensex 30 stocks :

  1. Asian Paints Paints
  2. Axis Bank Banking – Private
  3. Bajaj Auto Automobile
  4. Bajaj Finance Finance (NBFC)
  5. Bajaj Finserv Finance (Investment)
  6. Bharti Airtel Telecommunications
  7. Dr Reddy’s Laboratories Pharmaceuticals
  8. HCL Technologies IT Services & Consulting
  9. HDFC Finance (Housing)
  10. HDFC Bank Banking – Private
  11. Hindustan Unilever Limited FMCG
  12. ICICI Bank Banking – Private
  13. IndusInd Bank Banking – Private
  14. Infosys IT Services & Consulting
  15. ITC Limited Cigarettes & FMCG
  16. Kotak Mahindra Bank Banking – Private
  17. Larsen & Toubro Engineering & Construction
  18. Mahindra & Mahindra Automobile
  19. Maruti Suzuki Automobile
  20. Nestlé India FMCG
  21. NTPC Power generation/Distribution
  22. Oil and Natural Gas Corporation Oil exploration and Production
  23. Power Grid Corporation of India Power generation/Distribution
  24. Reliance Industries Limited Conglomerate
  25. State Bank of India Banking – Public
  26. Sun Pharma Pharmaceuticals
  27. Tata Consultancy Services IT Services & Consulting
  28. Tech Mahindra IT Services & Consulting
  29. Titan Company Diamond & Jewellery
  30. UltraTech Cement Cement

Index fund direct plan comes with no broker, no agent and no fund manager.

Asking the following questions might help:

What fees and expenses can I expect to pay for buying, owning, and selling this fund?
What specific risks are associated with this fund?
How does the fund’s investment strategy fit with my investment goals?

Finally, the question comes to “which is the best investment plan in India for middle class”. That is low cost Sensex and nifty index mutual funds.

  1. HDFC Index Sensex Direct Plan (0.20%)
  2. UTI Nifty Index Fund Direct plan(0.19%)
  3. Motilal Oswal Nifty Bank Index fund (0.38%)
  4. Motilal Oswal Nifty 500 Direct Fund (0.38%)
  5. Axis Nifty 100 Index Fund – Direct plan (0.15%)
  6. ICICI Prudential Nifty Index – Direct Plan (0.10%)
  7. IDBI Nifty Index fund – Direct Plan (0.16%)
  8. SBI Nifty Index fund – Direct plan (0.09%)
  9. UTI Nifty Next 50 Index fund – Direct Plan (0.34%)
  10. SBI Nifty Next Index fund – Direct plan (0.09%)
  11. Motilal Oswal Nifty Midcap 150 Direct Fund (0.20%)
  12. Nippon India Nifty Smallcap 250 Index Growth Direct Plan(0.30%)
  13. Motilal Oswal Nifty Smallcap 250 Index Growth Direct Plan(0.30%)

You invest in an index through an index fund, the investments are made based on the weight of each company.

How to start Index fund investment :

Mutual funds aggregator platform is one stop solution for mutual funds investment. We can open account in one of aggregator and invest in all the mutual fund from all the AMC in single account. It is easy to manage and track the mutual funds investment.  Open mutual fund account made simple and easy. Here we listed top 6 mutual fund aggregators for your reference.

PaisaBazaar  : Online platform is 100% free
Kuvera : Online platform is 100% free
Zerodha Coin  : Charge INR 50 per month once the investment value in your direct mutual fund portfolio crosses INR 25,000
PayTM Money  : 100% free and currently offers support for 25+ AMCs, constituting more than 90% of industry AUM
Groww  : 100% free for mutual fund investment.
ClearFunds  : 100 % free mutual fund aggregator platform.

To invest in mutual funds from any AMC, just open one account in any one of the aggregator and start invest on respective mutual funds.