5 Best Nifty 50 Index Funds In India (2026)

Nifty 50 index funds have become the go-to choice for Indian investors who want market-linked returns without the complexity of stock picking. With expense ratios often below 0.20% and a portfolio that mirrors India's 50 largest companies, these funds offer a straightforward path to wealth building. But here's the catch, not all Nifty 50 index funds perform equally. Small differences in tracking error and costs can significantly impact your returns over time, making it essential to identify the best Nifty 50 index funds before you invest.

At Invsify, we help investors cut through the noise with AI-powered, conflict-free financial advice. As a SEBI Registered Investment Advisor, we analyze funds based on data, not commissions, so you get recommendations that actually serve your financial goals.

This guide breaks down the top 5 Nifty 50 index funds available in India for 2026. We've evaluated each fund on expense ratio, tracking error, AUM, and historical performance to help you make an informed decision. Whether you're starting your investment journey or optimizing an existing portfolio, this list will point you toward funds that deliver consistent, cost-efficient returns.

1. Invsify

Invsify isn't a mutual fund, it's the AI-powered platform that helps you choose and invest in the best Nifty 50 index funds for your specific financial situation. As a SEBI Registered Investment Advisor, Invsify analyzes your portfolio, risk profile, and goals to recommend funds that align with your wealth-building strategy. You get conflict-free advice because we don't earn commissions from fund houses, which means every recommendation serves your interest, not ours.

What you get in Invsify for Nifty 50 investing

Invsify gives you AI-driven portfolio tracking that monitors your Nifty 50 fund investments in real time and flags when expense ratios or tracking errors drift from optimal levels. Your personalized Wealth Wellness Score updates weekly to show how well your index fund allocation fits your overall financial health. You also receive daily audio snippets covering market movements, tax changes, and regulatory updates that could affect your Nifty 50 holdings.

How Invsify helps you pick the right Nifty 50 fund

The platform analyzes over 20 Nifty 50 index funds based on tracking error, expense ratio, AUM stability, and fund house credibility to shortlist options that match your investment horizon and tax bracket. Your conversational RM AI answers questions like "Should I pick direct or regular plan?" or "Which fund has the lowest tracking difference?" in under 10 seconds, available 24/7 in multiple languages. This eliminates the guesswork that often leads investors to choose funds based on incomplete information or misleading marketing.

How Invsify helps you pick the right Nifty 50 fund

"Invsify's AI doesn't push products. It builds a data-backed roadmap for your wealth."

Costs you pay and what you do not pay

You pay a transparent advisory fee starting at ₹999 per year, with no hidden charges or transaction markups. Invsify doesn't collect distributor commissions, which traditional advisors pocket at 0.50% to 1% of your AUM annually. The hidden fee calculator shows you exactly how much you save by avoiding regular plans and commission-based intermediaries.

Who should use Invsify

Invsify suits first-time investors who need structured guidance on building a Nifty 50 core portfolio and experienced investors looking to audit their existing holdings for cost leaks. If you're tired of conflicting advice from online forums or want to move away from commission-driven distributors, Invsify's conflict-free model ensures your decisions are backed by data, not sales targets.

2. UTI Nifty 50 Index Fund

UTI Nifty 50 Index Fund ranks among the oldest index fund offerings in India, launched in 2000 when passive investing was still gaining traction. The fund tracks the Nifty 50 Total Returns Index and has built a substantial AUM base over two decades, making it a reliable choice for investors seeking long-term equity exposure through large-cap stocks.

2. UTI Nifty 50 Index Fund

Fund snapshot and mandate

The fund follows a full replication strategy, holding all 50 stocks in the exact proportions as the benchmark index. Your investment gets distributed across sectors like financial services, IT, and energy, with automatic rebalancing when the index composition changes. The scheme maintains minimal cash drag by staying fully invested, which helps reduce tracking error over time.

Expense ratio and total cost to hold

You pay an expense ratio of 0.20% for the direct plan and 0.95% for the regular plan. This means for every ₹1 lakh invested, you incur ₹200 annually in direct mode, while regular mode costs you ₹950. The difference compounds significantly over 10+ years, making the direct plan the better option unless you need distributor handholding.

Tracking difference and tracking error to check

UTI's tracking difference typically stays within 0.10% to 0.15% of the index returns annually. Your returns trail the benchmark slightly due to expense ratio and transaction costs during rebalancing. The fund maintains consistent tracking error below 0.20%, which indicates tight alignment with the index movements.

"Lower tracking error means you're getting what you signed up for, nothing more, nothing less."

What returns can and cannot tell you

Historical returns show the fund delivered approximately 14% CAGR over the past decade, mirroring the Nifty 50's performance. However, past returns don't predict future outcomes, and you should evaluate this fund based on its ability to replicate the index efficiently. Returns fluctuate with market cycles, but the fund's job is matching the benchmark, not beating it.

Who it suits best in a portfolio

This fund works well for core portfolio allocation when you want exposure to India's largest companies without stock selection risk. You benefit most if you're investing for 7+ years and prefer a hands-off approach to equity investing. The fund suits both SIP investors building wealth gradually and lumpsum investors deploying significant capital.

How to invest and what plan to pick

You can invest through the AMC website, mobile app, or aggregator platforms like MFCentral. Always choose the direct plan to save on distributor commissions that eat into your returns. Start with monthly SIPs if you're new to investing, or consider lumpsum during market corrections when valuations appear reasonable.

3. HDFC Nifty 50 Index Fund

HDFC Nifty 50 Index Fund has established itself as one of the largest passive funds in India, managing an AUM that consistently ranks among the top three index funds tracking this benchmark. The fund house's strong distribution network and brand credibility have attracted both retail and institutional investors since its launch, making it a frequent choice when comparing the best nifty 50 index funds.

Fund snapshot and mandate

Your investment follows the Nifty 50 TRI benchmark through complete replication of all 50 constituent stocks. The fund maintains sector weights identical to the index and rebalances automatically during index reconstitution events. HDFC deploys a systematic approach to minimize tracking error while keeping transaction costs low.

Expense ratio and total cost to hold

The direct plan charges 0.20% expense ratio while the regular plan costs 1.00% annually. Your ₹1 lakh investment incurs ₹200 yearly in direct mode versus ₹1,000 in regular mode. This cost difference compounds over time and directly impacts your wealth accumulation.

Tracking difference and tracking error to check

HDFC maintains tracking difference within 0.12% to 0.18% of the benchmark annually. Your returns lag slightly due to fund expenses and rebalancing friction. The tracking error typically stays below 0.22%, indicating reliable index replication.

"Consistent tracking metrics reveal how well a fund executes its passive mandate."

What returns can and cannot tell you

The fund delivered approximately 13.8% CAGR over the past decade, closely matching the Nifty 50 performance. Returns vary with market conditions, but you should focus on how efficiently the fund tracks the index rather than absolute return numbers.

Who it suits best in a portfolio

This fund fits long-term investors seeking core equity exposure through India's top 50 companies. You benefit from HDFC's operational stability and scale advantages when holding this fund for 5+ years as part of a diversified portfolio.

How to invest and what plan to pick

You can invest through HDFC's website, app, or third-party platforms supporting direct mutual fund investments. Always select the direct plan to avoid paying distributor commissions that reduce your net returns over extended holding periods.

4. SBI Nifty 50 Index Fund

SBI Nifty 50 Index Fund operates under India's largest public sector bank, giving it immediate credibility and extensive reach across the country. The fund has attracted substantial AUM through SBI's vast distribution network and competitive pricing, making it a popular choice among investors evaluating the best nifty 50 index funds for their portfolios.

Fund snapshot and mandate

Your investment replicates the Nifty 50 TRI by holding all 50 stocks in proportions matching the benchmark. The fund maintains sector allocations identical to the index and adjusts holdings during quarterly rebalancing events.

Expense ratio and total cost to hold

The direct plan charges 0.20% annually while regular plans cost around 0.95%. Your ₹1 lakh investment pays ₹200 yearly in direct mode, making it cost-competitive with other top index funds.

Tracking difference and tracking error to check

SBI maintains tracking difference within 0.10% to 0.16% of benchmark returns. The fund's tracking error typically remains below 0.20%, demonstrating efficient index replication.

What returns can and cannot tell you

Historical performance shows approximately 14% CAGR over the past decade. Your focus should remain on tracking accuracy rather than chasing past returns.

"Tracking precision matters more than headline returns in passive investing."

Who it suits best in a portfolio

This fund works for core equity allocation when you want exposure to India's largest companies through a trusted public sector institution.

How to invest and what plan to pick

You can invest through SBI's YONO app, website, or mutual fund platforms. Always choose the direct plan to maximize your long-term wealth accumulation.

5. Axis Nifty 50 Index Fund

Axis Nifty 50 Index Fund has gained traction as a newer entrant in the passive investing space, leveraging the parent AMC's reputation for operational excellence. The fund offers competitive pricing and robust tracking mechanics that make it worth considering among the best nifty 50 index funds available today.

Fund snapshot and mandate

Your investment tracks the Nifty 50 TRI through full replication of all constituent stocks. The fund maintains identical sector weights as the benchmark and executes automatic rebalancing during index changes.

Expense ratio and total cost to hold

The direct plan charges 0.15% annually, which is lower than most competitors at 0.20%. Your ₹1 lakh investment costs ₹150 yearly, providing a slight cost advantage over time.

Tracking difference and tracking error to check

Axis maintains tracking difference within 0.08% to 0.14% of the benchmark. The fund's tracking error stays below 0.18%, showing efficient index replication.

What returns can and cannot tell you

The fund has delivered returns closely matching the index since launch. Your evaluation should focus on tracking efficiency rather than historical performance alone.

"Lower expense ratios compound into larger wealth over decades of investing."

Who it suits best in a portfolio

This fund fits cost-conscious investors seeking core equity exposure through a well-managed index fund with competitive pricing.

How to invest and what plan to pick

You can invest through Axis's website, app, or aggregator platforms. Always select the direct plan to maximize savings from the lower expense ratio.

best nifty 50 index funds infographic

Final thoughts

Selecting the best nifty 50 index funds comes down to three measurable factors: expense ratio, tracking error, and the fund house's operational stability. Your returns depend less on which AMC you pick and more on how consistently that fund replicates the benchmark while keeping costs low. The difference between a 0.15% and 0.20% expense ratio might seem small today, but it compounds into thousands of rupees over a 15-year investment horizon.

Your choice should align with your investment style and platform preferences. UTI, HDFC, SBI, and Axis all deliver reliable tracking performance, making them solid options for core portfolio allocation. What matters is getting started and staying invested through market cycles rather than endlessly comparing marginal differences.

At Invsify, we help you skip the analysis paralysis with AI-powered fund recommendations tailored to your risk profile and financial goals. Our platform monitors your portfolio continuously and alerts you when better alternatives emerge. Start building your conflict-free investment strategy with Invsify and let data drive your wealth-building decisions.