Best Index Funds in India 2025

Best Index Funds - Consider the best performing index mutual funds to invest in 2025 with Scripbox.com. Find the list of best index funds in India on the basis of Returns, Latest Nav, Ratings, Performance, etc.

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Best Index Funds to Invest in 2025

Note : *NA implies that Fund is relatively new. Not enough data available

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Top 10 Index Funds to invest in 2025

Below are the best index funds in india:

1. SBI Nifty Bank Index Fund Direct (G)

SBI Nifty Bank Index Fund Direct (G) is a Equity fund. The fund has an expense ratio of % and an AUM of ₹0 crores as of 2025-03-05. It was Launched on 2025-02-06. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000.

2. Motilal Oswal Nifty Bank Index Fund Direct (G)

Motilal Oswal Nifty Bank Index Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 2.4%, a 3 Years return of 11.9% and a 5 Years return of 10.7%. The fund has an expense ratio of 0.3% and an AUM of ₹604 crores as of 2025-03-05. It was Launched on 2019-09-06. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 100.15% to equities, 0.19% to debt and -0.35% to other assets.

3. Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund Direct (G)

Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 10.8% and a 3 Years return of 16.9%. The fund has an expense ratio of 0.5% and an AUM of ₹158 crores as of 2025-03-05. It was Launched on 2020-10-26. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 99.67% to equities, 0.23% to debt and 0.10% to other assets.

4. ICICI Prudential Nifty IT Index Fund Direct (G)

ICICI Prudential Nifty IT Index Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 1.9%. The fund has an expense ratio of 0.4% and an AUM of ₹579 crores as of 2025-03-05. It was Launched on 2022-08-18. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 100.72% to equities and -0.72% to other assets.

5. ICICI Prudential Nifty Pharma Index Fund Direct (G)

ICICI Prudential Nifty Pharma Index Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 5.5%. The fund has an expense ratio of 0.3% and an AUM of ₹88 crores as of 2025-03-05. It was Launched on 2022-12-14. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 99.91% to equities and 0.09% to other assets.

6. Nippon India Nifty IT Index Fund Direct (G)

Nippon India Nifty IT Index Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 2.1%. The fund has an expense ratio of 0.3% and an AUM of ₹150 crores as of 2025-03-05. It was Launched on 2024-02-22. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 99.64% to equities, 0.01% to debt and 0.35% to other assets.

7. HDFC NIFTY Realty Index Fund Direct (G)

HDFC NIFTY Realty Index Fund Direct (G) is a Equity fund. The fund has an expense ratio of 0.4% and an AUM of ₹123 crores as of 2025-03-05. It was Launched on 2024-03-26. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 99.97% to equities and 0.03% to other assets.

8. Navi Nifty India Manufacturing Index Fund Direct (G)

Navi Nifty India Manufacturing Index Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 2.4%. The fund has an expense ratio of 0.2% and an AUM of ₹52 crores as of 2025-03-05. It was Launched on 2022-08-29. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 99.70% to equities and 0.30% to other assets.

9. Bandhan Nifty IT Index Fund Direct (G)

Bandhan Nifty IT Index Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 2.1%. The fund has an expense ratio of 0.4% and an AUM of ₹29 crores as of 2025-03-05. It was Launched on 2023-08-31. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 99.65% to equities, 0.00% to debt and 0.35% to other assets.

10. Bandhan Nifty Bank Index Fund Direct (G)

Bandhan Nifty Bank Index Fund Direct (G) is a Equity fund. The fund has an expense ratio of 0.2% and an AUM of ₹14 crores as of 2025-03-05. It was Launched on 2024-08-27. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 96.76% to equities, 0.02% to debt and 3.22% to other assets.

Factors to Consider Before Investing in The Best Index Mutual Funds in 2025

The following are the factors that you should consider before investing in the best index mutual funds in India in 2025

  • Investment Horizon: Index funds are suitable for investors who have a long-term investment horizon. The fund return might fluctuate in the short term but usually evens out in the long run. It is important to stick to the fund over the decided horizon in order for the fund investments to perform well.
  • Taxation: Redemption of units of index funds leads to capital gain, which can be either short-term or long-term, depending on the holding period. The short-term capital gains are taxable at 15%, and long-term capital gains are taxable at 10% without the benefit of indexation. However, for long-term gains, taxability arises only if the gain is above Rs. 1,00,000.
  • Financial Goals: If the investors make sure to stick to the investment horizon, index funds are able to offer better returns which in turn will help the investors to achieve their financial goals. This can include retirement, wealth creation etc.
  • Expense Ratio: Index funds usually have a lower expense ratio when compared to other funds. If there are two funds tracking, say Nifty, both will generate a similar return. The fund which will have a lower expense ratio will provide a higher return on investment.

How to Invest in an Indexed Fund Through Scripbox

Investing in index mutual funds in India can be done directly or through an agent. Investors can invest online through the direct method by logging on to the fund houses’ website and investing in the fund. On the other hand, they can invest through offline mode by visiting the nearest branch of the fund house. Investing through an intermediary can be done both online and offline.

There are multiple online platforms to invest in these funds, and one of them is Scripbox. Scripbox allows investors to invest the best index funds (Nifty 50 funds or BSE funds) carefully picked after thorough research using their robotic technology. 

You can invest in Scripbox’s recommended best index mutual funds in India by following the below-mentioned steps:

  1. Login to Scripbox
  2. Click on ‘Invest’
  3. Begin your investment journey by choosing ‘A plan to invest in’ or ‘I want to choose my own funds’
  4. Select the mode of investment, i.e., monthly SIP, one-time or STP
  5. Enter the amount of investment
  6. Based on the amount of investment, the recommended funds will be provided. You can change the funds and the distribution of the amount.
  7. Select the payment mode and complete the transaction to set up your investment. 

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