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 :
- Asian Paints Paints
- Axis Bank Banking – Private
- Bajaj Auto Automobile
- Bajaj Finance Finance (NBFC)
- Bajaj Finserv Finance (Investment)
- Bharti Airtel Telecommunications
- Dr Reddy’s Laboratories Pharmaceuticals
- HCL Technologies IT Services & Consulting
- HDFC Finance (Housing)
- HDFC Bank Banking – Private
- Hindustan Unilever Limited FMCG
- ICICI Bank Banking – Private
- IndusInd Bank Banking – Private
- Infosys IT Services & Consulting
- ITC Limited Cigarettes & FMCG
- Kotak Mahindra Bank Banking – Private
- Larsen & Toubro Engineering & Construction
- Mahindra & Mahindra Automobile
- Maruti Suzuki Automobile
- Nestlé India FMCG
- NTPC Power generation/Distribution
- Oil and Natural Gas Corporation Oil exploration and Production
- Power Grid Corporation of India Power generation/Distribution
- Reliance Industries Limited Conglomerate
- State Bank of India Banking – Public
- Sun Pharma Pharmaceuticals
- Tata Consultancy Services IT Services & Consulting
- Tech Mahindra IT Services & Consulting
- Titan Company Diamond & Jewellery
- 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.
- HDFC Index Sensex Direct Plan (0.20%)
- UTI Nifty Index Fund Direct plan(0.19%)
- Motilal Oswal Nifty Bank Index fund (0.38%)
- Motilal Oswal Nifty 500 Direct Fund (0.38%)
- Axis Nifty 100 Index Fund – Direct plan (0.15%)
- ICICI Prudential Nifty Index – Direct Plan (0.10%)
- IDBI Nifty Index fund – Direct Plan (0.16%)
- SBI Nifty Index fund – Direct plan (0.09%)
- UTI Nifty Next 50 Index fund – Direct Plan (0.34%)
- SBI Nifty Next Index fund – Direct plan (0.09%)
- Motilal Oswal Nifty Midcap 150 Direct Fund (0.20%)
- Nippon India Nifty Smallcap 250 Index Growth Direct Plan(0.30%)
- 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.