Navi Nifty 50 Index Fund has the lowest expense ratio of any Nifty 50 index fund, at 0.10% a year for the Direct plan, followed by Kotak (0.12%) and Nippon India (0.13%). Among the four biggest funds, SBI is cheapest at 0.23% and HDFC dearest at 0.29%, while their three-year returns differ by under 0.1 percentage point. A Nifty 50 index fund simply buys the 50 stocks in the Nifty 50, in the same proportions, so what separates them is how much they charge and how closely they follow the index. This guide compares 17 of them with AMFI data to 30 September 2026.
Nifty 50 Index Funds Compared (Direct Growth, September 2026)
| Fund | Expense ratio | Tracking error | AUM (₹ Cr) | 1 year | 3 years (a year) | 5 years (a year) |
|---|---|---|---|---|---|---|
| Navi Nifty 50 Index Fund | 0.10% | 0.02%* | 3,900 | −7.17% | 5.87% | 6.17% |
| Kotak Nifty 50 Index Fund | 0.12% | 0.06% | 1,116 | −7.17% | 5.77% | 6.09% |
| Nippon India Index Fund – Nifty 50 Plan | 0.13% | 0.03% | 3,461 | −7.18% | 5.86% | 6.15% |
| Bandhan Nifty 50 Index Fund | 0.14% | 0.03% | 2,687 | −7.23% | 5.83% | 6.19% |
| Edelweiss Nifty 50 Index Fund | 0.14% | 0.07% | 282 | −7.12% | 5.84% | n/a |
| Axis Nifty 50 Index Fund | 0.16% | 0.04% | 997 | −7.20% | 5.85% | n/a |
| Motilal Oswal Nifty 50 Index Fund | 0.19% | 0.04% | 845 | −7.19% | 5.87% | 6.17% |
| DSP Nifty 50 Index Fund | 0.22% | 0.06% | 1,047 | −7.19% | 5.85% | 6.14% |
| HSBC Nifty 50 Index Fund | 0.22% | 0.10% | 371 | −7.24% | 5.80% | 6.13% |
| SBI Nifty Index Fund | 0.23% | 0.02% | 13,190 | −7.33% | 5.77% | 6.10% |
| Aditya Birla Sun Life Nifty 50 Index Fund | 0.23% | 0.07% | 1,417 | −7.24% | 5.81% | 6.08% |
| ICICI Prudential Nifty 50 Index Fund | 0.24% | 0.03% | 16,311 | −7.29% | 5.77% | 6.10% |
| UTI Nifty 50 Index Fund | 0.25% | 0.02% | 28,064 | −7.25% | 5.82% | 6.14% |
| Tata Nifty 50 Index Fund | 0.26% | 0.10% | 1,627 | −7.32% | 5.72% | 6.09% |
| HDFC Nifty 50 Index Fund | 0.29% | 0.02% | 22,246 | −7.33% | 5.76% | 6.09% |
| Franklin India NSE Nifty 50 Index Fund | 0.30% | 0.12% | 654 | −7.23% | 5.81% | 6.08% |
| LIC MF Nifty 50 Index Fund | 0.56% | 0.11% | 345 | −7.63% | 5.63% | 5.98% |
Direct plan, Growth option, sorted by expense ratio. Expense ratio is the total Direct-plan TER (base expense ratio plus statutory levies) in AMFI's filing for 30 September 2026. Tracking error is AMFI's one-year figure for the Direct plan as of 30 September 2026; *Navi's is from 25 September 2026, the latest September date for which AMFI lists it. AUM and returns are from AMFI's fund performance data for 30 September 2026; three- and five-year returns are annualised. Edelweiss and Axis launched less than five years ago, so they have no five-year return. Since April 2026, funds disclose a base expense ratio plus statutory levies; the figures here are the total you pay, so older comparisons may not be like-for-like.
How we ranked them
The table is sorted by Direct-plan expense ratio, lowest first. It is the one difference between these funds that you know in advance, and over time it explains most of the gap in their returns. Ties are broken by lower tracking error, then by larger AUM. The list includes every Nifty 50 index fund with at least three years of NAV history and over ₹250 crore in assets. Newer or very small funds (Mirae Asset, JioBlackRock, Zerodha, Groww, Angel One, Bajaj Finserv, Baroda BNP Paribas, Choice and Taurus) are left out because they have no three-year record or hold under ₹100 crore. The order is a cost ranking, not a recommendation to buy any fund.
What the table tells you
- Returns are nearly identical. Over three years, 16 of the 17 funds returned between 5.72% and 5.87% a year. LIC MF, the only one charging over 0.5%, trails at 5.63%. That is the point of an index fund: you get the index, minus costs.
- Recent returns are modest. The Nifty 50 Total Return Index fell 7.09% over the year to 30 September 2026, and returned 6.05% a year over three years and 6.37% over five (AMFI). Don't expect the double-digit numbers of earlier years to repeat on schedule.
- Cost is the real difference. Navi is cheapest at 0.10%; among the four largest funds, SBI is cheapest at 0.23% and HDFC dearest at 0.29%. Small gaps compound: every 0.10 point of yearly fee trims roughly 3% off your final value over 30 years.
- Tracking is tight for almost all of them. Seven funds track within 0.02–0.03% a year. Only HSBC, Tata, LIC MF and Franklin are at 0.10% or above, and none is above 0.12%.
- A low fee today isn't the whole record. Kotak's 0.12% is the second-lowest fee, yet its three-year return (5.77%) is the same as SBI's and ICICI Prudential's, which charge about twice as much. A fee cut shows up in returns only over time, so check both.
- Size: UTI, HDFC, ICICI Prudential and SBI hold about ₹80,000 crore between them, roughly 80% of the ₹99,000 crore in Nifty 50 index funds. Navi, at ₹3,900 crore, tracks as tightly as they do, so size alone isn't a reason to pick a fund.
How to Pick One
- Choose the Direct plan. For UTI's fund, the Regular plan charges 0.37% against 0.25% for Direct. The gap is smaller for index funds than for active funds, but there is no reason to pay it.
- Compare expense ratios on the latest factsheet; they change from time to time.
- Check tracking error. Anything under about 0.1% is fine for a Nifty 50 fund.
- Hold one. Owning three Nifty 50 index funds adds nothing: they hold the same 50 stocks.
For the full method, see how to choose an index fund.
Index Fund or Nifty 50 ETF?
Nifty 50 ETFs hold the same stocks but trade on the exchange, and the big ones are cheaper still: ICICI Prudential's and Kotak's charge 0.03%, Nippon's Nifty BeES 0.04%, SBI's 0.045% and UTI's and HDFC's 0.05% (AMFI data, September 2026). Over five years, Nifty BeES's NAV grew about 0.2 percentage points a year faster than UTI's index fund, before brokerage and bid-ask spread.
An ETF needs a demat account and doesn't offer automatic SIPs directly; an index fund does. For small monthly amounts the convenience often wins; for larger sums the ETF's lower fee can add up. Try both with our ETF vs index fund cost calculator, or read ETF vs mutual fund vs index fund.
Index Fund vs Active Large-Cap Fund
| Nifty 50 index fund (Direct) | Active large-cap fund (Direct) | |
|---|---|---|
| Expense ratio | 0.10–0.30% for most | about 0.6–1.0% |
| Fund-manager risk | None | Manager may leave or change style |
| Relative to the index | Trails it by roughly its costs | Can beat or trail it, after higher costs |
| Suits | A low-cost core holding | Investors with a specific reason to back a manager |
S&P's SPIVA India scorecards have repeatedly found that most active large-cap funds trail their benchmark over ten years. An active fund has to beat the index by more than its extra fee just to break even with an index fund.
How Much of Your Equity Should Be in the Nifty 50?
A Nifty 50 index fund works well as the core of an equity portfolio, with mid-cap, flexi-cap or international exposure added around it. The right split depends on your goals and risk appetite; our financial planner can help you set it.
How It Is Taxed
Nifty 50 index funds are equity funds: gains within 12 months are taxed at 20%, and gains after 12 months at 12.5% above ₹1.25 lakh a year.
Common Mistakes
- Picking by last year's return: the 16 funds charging under 0.5% returned between −7.12% and −7.33% over the year to September 2026. Pick on cost.
- Buying the Regular plan through a distributor or bank when you don't need advice.
- Holding several Nifty 50 funds and thinking you are diversified.
- Stopping SIPs after a bad year: the Nifty 50's negative year to September 2026 is exactly when regular buying helps most.
This guide explains how to compare Nifty 50 index funds. It is not a recommendation to buy any specific fund.