Category: Mutual Funds

How Interest Rates Impact Mutual Funds in India

A few years ago, fixed deposits felt like the safest answer for most investors. Investors used to lock their funds in a fixed deposit and earn a steady interest. There was limited concern about market fluctuations, as fixed deposits offered predictable returns. But then interest rates started moving and returns changed. Suddenly, many people began looking beyond deposits and towards mutual funds.

This shift highlights why interest rates and mutual funds are deeply connected. In fact, a change in the interest rate can impact the mutual fund performance, especially over time. To invest with clarity, it is also important to understandhow interest rates influence mutual funds, rather than treating them as the same thing.

So, if you are new to investing or have been investing for years now, read this guide. Understand how these two are connected and why you should evaluate the relationship when you plan to invest.

Understanding Interest Rates

Interest rates affect everyday money decisions, even when we do not notice them directly. From loan EMIs to returns on deposits, almost every financial decision is influenced by interest rates. Simply put, interest rates are the cost of borrowing money and the reward for saving it.

Here is how interest rates work in real life:

When the interest rate is low, borrowing rates are low. People can borrow more at a lower cost. This increases the spending capacity of the people.
When the interest rate is high, the earning part of savings becomes more lucrative. This is the time when people spend less and invest more into savings.

These changes influence markets and investment products, including mutual funds. Understanding this basic cycle helps you see why interest rates matter beyond banks and deposits.

RBI Tools That Shape Interest Rates

Interest rates in India do not move on their own, they are largely influenced by policy decisions and economic conditions.. Behind every interest rate rise or cut, there is a decision taken by the Reserve Bank of India. The RBI’s role is not to chase market returns. It works to ensure that the economy is stable and is helping the banking system work seamlessly.

The RBI rates that you must know of are as follows:

1. Repo Rate

The repo rate is the interest rate at which banks borrow money from the RBI. This is usually for short periods. When the repo rate goes up, banks pay more to borrow. This usually leads to higher loan interest for customers. When the repo rate comes down, loans become cheaper. This is the time when spending quickly picks up.

2. Reverse Repo Rate

The reverse repo rate is the opposite. It is the rate banks earn when they park extra money with the RBI. When this rate is high, banks prefer keeping money with the RBI instead of lending. This reduces money flow in the economy and the general interest rate rises. When it is low, banks are in a position where they can lend more and interest rates fall.

3. Cash Reserve Ratio (CRR)

This is the amount that the banks keep with the RBI for safekeeping. It is the amount that the bank cannot use for lending to customers. A rise in CRR means that banks have less money to lend, and so rates will rise. At the same time, when CRR falls, the money with banks increases to give out loans to customers. Now banks can lend more at lower rates.

With the help of these, the RBI controls the money supply and the credit growth. Also, the overall interest rate direction is determined without directly setting loan rates.

Factors Affecting Interest Rates

Interest never moves in a straight line. It works in cycles. This is why it is very important to know all the factors that impact the interest rates and how you can actually manage them better. So, the key factors are as follows:

1. Inflation Pressure

When everyday costs like food, fuel, and services rise quickly, interest rates are increased. Higher rates make borrowing costly. This reduces the amount that people seek as a loan. This also reduces the purchasing parity as well and so the consumption as well.

2. Pace of Economic Activity

If businesses are expanding and people are spending freely, demand for loans increases. This pushes interest rates upward. When economic activity slows, lower rates are used to encourage borrowing and revive demand.

3. Availability of Money With Banks

When banks have excess funds, lending becomes easier and interest rates remain low. If funds dry up, banks raise rates to manage risk. Central bank actions often control this flow of money using various monetary tools.

4. Government Spending and Borrowing

Large government borrowing increases demand for funds in the market. This can lead to higher interest rates. Lower borrowing eases pressure and supports stable rates.

5. Global Market Influence

Interest rate moves in other major economies affect capital movement. If global rates rise, domestic rates may also increase to retain foreign investment. When global rates fall, there is room to cut rates locally.

All these factors work together and create a positive or negative impact on the interest rates. This thereby creates pressure on the investment plans as well.

How Interest Rates Impact Mutual Funds

Interest rate changes gradually make their way into mutual fund performance over time. The effect is not instant, but it becomes clear over time. The impact also depends on the type of mutual fund you hold. Debt funds react faster, equity funds react gradually, and hybrid funds fall somewhere in between.

1. Impact on Debt Mutual Funds

Debt mutual funds are the ones that are impacted by the interest rates directly. This is mainly because these funds invest in bonds and other debt instruments.

When interest rates rise, new bonds offer higher yields. Existing bonds with lower rates lose value, which can pull down debt fund NAVs. When interest rates fall, older bonds with higher coupons become more attractive and the bond value rises. So debt fund NAVs usually rise.

Long-duration debt funds are more sensitive to rate changes. Short-term and liquid funds are less affected.

2. Impact on Equity Mutual Funds

Equity mutual funds are affected indirectly as it has an impact on the company’s financials, profits and its investment decision. This impacts the market liquidity as well.

Lower interest rates reduce borrowing costs for companies. This supports expansion and improves earnings. This is positive for equity funds. Higher interest rates increase borrowing costs and slow economic growth. This can pressure stock valuations and its profitability.

The impact is not uniform. Rate-sensitive sectors feel it more, while defensive sectors remain relatively stable.

3. Impact on Hybrid Mutual Funds

Hybrid mutual funds hold both equity and debt. Their reaction to interest rate changes is more balanced.

The debt portion reacts directly to rate movements. The equity portion reacts based on growth expectations. Because these funds combine equity and debt, the overall impact is more balanced. This is why the same shows a relatively smoother and gradual performance across the interest rate cycles.

This makes them suitable for investors who want stability during changing rate environments.

In conclusion, interest rates influence mutual fund performance in different ways across fund categories. But in reality, they affect return direction and volatility, which are key factors in mutual fund performance analysis. So, there is an indirect relationship between interest rates and mutual funds.

Understanding the Link Between Interest Rates and Mutual Funds

Interest rates influence mutual funds in different ways, depending on what the fund invests in. A simple comparison helps make this link clearer. Instead of tracking every rate change, it is better to understand the pattern and how each fund type usually reacts.

The table below explains this connection in a practical way.

Interest Rate Movement	Debt Mutual Funds	Equity Mutual Funds	Hybrid Mutual Funds
Rates increase	Bond prices fall. Debt fund NAVs may decline, especially in long-duration funds.	Borrowing costs rise. Profit expectations may reduce, affecting market sentiment.	The debt portion may face pressure. The equity portion may turn cautious.
Rates decrease	Bond prices rise. Debt fund NAVs generally improve.	Lower borrowing costs support growth and valuations over time.	Debt gains support. Equity benefits gradually from growth optimism.
Stable rates	Returns come mainly from interest income. Volatility stays low.	Markets focus on earnings and fundamentals.	Balanced performance with limited volatility.
Sharp rate changes	High impact on long-duration funds. Short-term funds stay safer.	Short-term volatility increases before markets adjust.	Asset allocation helps smooth the impact.

Tips to Protect Your Mutual Fund Investments During Interest Rate Changes

Interest rate cycles are unavoidable. But understanding how to invest during these cycles can help you manage risk more effectively. So, you need to work on logic and not emotions and it requires a disciplined approach. Some of the tips for you to follow are as follows:

1. Match Fund Type With Rate Direction

When interest rates are rising, prefer short-duration or low-duration debt funds. They face less price pressure. When rates are expected to fall, longer-duration debt funds may benefit more.

2. Avoid Frequent Switching

Constantly moving between funds based on rate news often hurts returns. Interest rate impact plays out over time. Staying disciplined works better than trying to time every move.

3. Keep Equity Investments Goal Focused

Equity mutual funds should be aligned with long-term goals. Short-term changes can lead to volatility, but you should not panic. It is generally better to stay invested over the long-term to absorb short-term rate-driven volatility.

4. Use Asset Allocation to Reduce Risk

You must spread your investment across different assets. This will work best when there are market fluctuations and reduce overall portfolio risk. When one asset reacts negatively to rates, another may offer stability.

5. Review, Do Not Panic

Rate changes are normal. Review your portfolio periodically based on goal and time horizon. These small corrections lead to better results and can improve outcomes over time without unnecessary disruption.

These steps help you stay invested with confidence, even when interest rates move against expectations.

Conclusion

Interest rates are never the same. They change with time and can create varied impacts on investments. This is why it becomes really important for investors to keep an eye on the investment options as well as the interest rate.

Mutual funds react to these changes in different ways. And once you know and understand this, you will be working for investments based on logic. This will remove all the noise from between.

If you want to track interest rate trends and choose mutual funds that match your goals, platforms like Pocketful can help you invest with clarity and confidence.

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Frequently Asked Questions (FAQs)

o mutual fund returns change immediately when interest rates change?
Debt mutual funds may react quickly, especially long-duration funds. Equity mutual funds usually respond gradually as company earnings and market sentiment adjust.
Are debt mutual funds safe when interest rates are rising?
Short-duration and liquid debt funds are relatively safer during rising interest rate phases. Long-duration funds carry higher interest rate risk.
Should I stop SIPs in equity funds when interest rates rise?
No. Rising interest rates can cause short-term volatility, but long-term equity investing works best when SIPs are continued without interruption.
Which mutual funds benefit most when interest rates fall?
Long-duration debt funds and dynamic bond funds usually benefit more when interest rates decline, as bond prices tend to rise.
Can interest rates alone decide mutual fund performance?
No. Interest rates influence returns. But if you consider the overall performance, there are other factors as well that can create a varied impact. Analysing all will help you invest better.

January 8, 2026

Best Target Maturity Mutual Funds in India to Invest

In India today, many investors are looking for investment options that offer both security of capital and a predictable return. This has led to increased interest in Target Maturity Mutual Funds. These debt funds invest in government and highly-rated bonds for a fixed period. In the current volatile interest rate environment, they are being seen as a balanced alternative to Fixed Deposits (FDs) and traditional Fixed Maturity Plans (FMPs) during 2025.

What Are Target Maturity Mutual Funds?

Target Maturity Mutual Funds are passive debt funds that have a fixed maturity date. These funds track a specific bond index and maintain their investments in the bonds included in that index until their maturity. The objective is to provide investors with relatively stable and predictable returns over time, provided the investment is held until maturity.

Best Target Maturity Mutual Funds to invest in India

HDFC Nifty G Sec July 2031 Index Direct Growth
Aditya Birla Sun Life CRISIL IBX Gilt Apr 2029 Index Fund Direct Growth
Nippon India Nifty G Sec Jun 2036 Maturity Index Fund Direct Growth
SBI CRISIL IBX Gilt Index April 2029 Fund Direct Growth
SBI CRISIL IBX Gilt Index June 2036 Fund Direct Growth
HDFC Nifty G Sec Sep 2032 Index Direct Growth
ICICI Prudential Nifty SDL Dec 2028 Index Fund Direct Growth
Mirae Asset CRISIL IBX Gilt Index April 2033 Index Fund Direct Growth
ICICI Prudential Nifty G Sec Dec 2030 Index Fund Direct Growth
Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Sep 2028 Index Fund Direct Growth

Read Also: Best Investment Options in India

1. HDFC Nifty G Sec July 2031 Index Direct Growth

HDFC Nifty G Sec July 2031 Index Direct Growth is a target maturity debt fund that tracks the Nifty G-Sec July 2031 Index. Investments in this scheme are primarily made in government bonds issued by the Government of India, which limits credit risk. The fund has a fixed maturity date, and its performance depends on interest rate fluctuations and index movements.

Fund Details:

Details	Information
Current NAV	12.87
Fund Size	670.47
Expense Ratio	0.20
Minimum Investment	100
Minimum SIP	100
Exit Load	Nill
Fund Manager	Sankalp Baid
1-year return	7.82
3-year return	8.43

2. Aditya Birla Sun Life CRISIL IBX Gilt Apr 2029 Index Fund Direct Growth

The Aditya Birla Sun Life CRISIL IBX Gilt Apr 2029 Index Fund Direct Growth is a debt fund with a fixed maturity date of April 2029. This fund invests in government bonds that are part of the CRISIL IBX Gilt Index. Since the investments are in government-issued bonds, the credit risk is low. The fund’s Net Asset Value (NAV) fluctuates periodically with changes in bond yields and interest rates, especially before maturity.

Fund Details:

Details	Information
Current NAV	13.03
Fund Size	610.41
Expense Ratio	0.22
Minimum Investment	500
Minimum SIP	500
Exit Load	Nill
Fund Manager	Harshil Suvarnkar
1-year return	8.78
3-year return	8.46

3 . Nippon India Nifty G Sec Jun 2036 Maturity Index Fund Direct Growth

The Nippon India Nifty G Sec Jun 2036 Maturity Index Fund Direct Growth is a target maturity debt fund with a maturity date of June 2036. This fund invests in government bonds included in the Nifty G-Sec June 2036 Index. Since the entire investment is in government securities, its structure is considered to have limited credit risk. The fund’s Net Asset Value (NAV) fluctuates periodically based on changes in interest rates and bond yields, especially before maturity.

Fund Details:

Details	Information
Current NAV	12.75
Fund Size	845.56
Expense Ratio	0.20
Minimum Investment	1000
Minimum SIP	100
Exit Load	Nill
Fund Manager	Siddharth Deb
1-year return	6.65
3-year return	8.46

4. SBI CRISIL IBX Gilt Index April 2029 Fund Direct Growth

The SBI CRISIL IBX Gilt Index April 2029 Fund Direct Growth is a target maturity debt fund with a maturity date of April 2029. This fund invests in government bonds included in the CRISIL IBX Gilt Index. Since the fund invests in securities issued by the central government, its credit structure is relatively secure. The fund’s Net Asset Value (NAV) fluctuates over time based on changes in bond yields and interest rates, particularly as it approaches maturity.

Fund Details:

Details	Information
Current NAV	12.98
Fund Size	2088.17
Expense Ratio	0.21
Minimum Investment	5000
Minimum SIP	500
Exit Load	Nill
Fund Manager	Ranjana Gupta
1-year return	8.76
3-year return	8.38

5. SBI CRISIL IBX Gilt Index June 2036 Fund Direct Growth

The SBI CRISIL IBX Gilt Index June 2036 Fund Direct Growth is a target maturity debt fund with a maturity date of June 2036. This fund invests in long-term government bonds included in the CRISIL IBX Gilt Index. Since the entire investment is in government securities, the credit risk is limited. The fund’s Net Asset Value (NAV) fluctuates with changes in interest rates and bond yields, particularly in the years leading up to maturity.

Fund Details:

Details	Information
Current NAV	13.01
Fund Size	2741.92
Expense Ratio	0.28
Minimum Investment	5000
Minimum SIP	500
Exit Load	Nill
Fund Manager	Ranjana Gupta
1-year return	6.45
3-year return	8.36

6. HDFC Nifty G Sec Sep 2032 Index Direct Growth

HDFC Nifty G Sec Sep 2032 Index Direct Growth is a target maturity debt fund with a maturity date of September 2032. This fund invests in government bonds included in the Nifty G-Sec September 2032 Index. Due to its entire investment being in government securities, it has a clean credit structure. The fund’s Net Asset Value (NAV) fluctuates over time based on changes in interest rates and bond yields, particularly in the period leading up to maturity.

Fund Details:

Details	Information
Current NAV	12.74
Fund Size	650.26
Expense Ratio	0.20
Minimum Investment	100
Minimum SIP	100
Exit Load	Nill
Fund Manager	Sanklap Baid
1-year return	7.51
3-year return	8.34

7. ICICI Prudential Nifty SDL Dec 2028 Index Fund Direct Growth

ICICI Prudential Nifty SDL Dec 2028 Index Fund Direct Growth is a target maturity debt fund with a maturity date of December 2028. This fund invests in bonds issued by state governments (SDLs) included in the Nifty SDL Index. Since the underlying investments are in state government securities, the credit structure is relatively clean. The fund’s Net Asset Value (NAV) fluctuates over time with changes in interest rates and bond yields, particularly before maturity.

Fund Details:

Details	Information
Current NAV	12.97
Fund Size	860.65
Expense Ratio	0.20
Minimum Investment	1000
Minimum SIP	–
Exit Load	Nill
Fund Manager	Darshil Dedhia
1-year return	8.12
3-year return	8.23

8. Mirae Asset CRISIL IBX Gilt Index April 2033 Index Fund Direct Growth

The Mirae Asset CRISIL IBX Gilt Index April 2033 Index Fund Direct Growth is a target maturity debt fund with a maturity date of April 2033. This fund invests in central government bonds that are part of the CRISIL IBX Gilt Index. Since the entire portfolio is based on government securities, credit risk is limited. The fund’s NAV fluctuates according to bond yields and interest rate movements, particularly in the period leading up to maturity.

Fund Details:

Details	Information
Current NAV	13.01
Fund Size	228.78
Expense Ratio	0.12
Minimum Investment	5000
Minimum SIP	–
Exit Load	Nill
Fund Manager	Mahendra Kumar Jajoo
1-year return	7.44
3-year return	8.29

9. ICICI Prudential Nifty G Sec Dec 2030 Index Fund Direct Growth

ICICI Prudential Nifty G Sec Dec 2030 Index Fund Direct Growth is a target maturity debt fund with a maturity date of December 2030. This fund invests in government bonds included in the Nifty G-Sec December 2030 Index. Due to its investment structure being entirely based on government securities, the credit risk is limited. The fund’s Net Asset Value (NAV) fluctuates periodically with changes in interest rates and bond yields, particularly in the period leading up to maturity.

Fund Details:

Details	Information
Current NAV	12.93
Fund Size	883.74
Expense Ratio	0.20
Minimum Investment	1000
Minimum SIP	500
Exit Load	Nill
Fund Manager	Darshil Dedhia
1-year return	7.68
3-year return	8.21

10. Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Sep 2028 Index Fund Direct Growth

The Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Sep 2028 Index Fund Direct Growth is a target maturity debt fund with a maturity date of September 2028. This fund tracks the CRISIL IBX 50:50 Gilt Plus SDL Index, which includes government bonds and state government bonds in roughly equal proportions. The fund’s Net Asset Value (NAV) fluctuates periodically based on changes in interest rates and the yields of these bonds, particularly in the period leading up to maturity.

Fund Details:

Details	Information
Current NAV	12.84
Fund Size	144.84
Expense Ratio	0.20
Minimum Investment	100
Minimum SIP	100
Exit Load	Nill
Fund Manager	Pranavi Kulkarni
1-year return	8.33
3-year return	8.18

Types of Target Maturity Funds Available in India

Gilt Target Maturity Funds: Gilt Target Maturity Funds invest in central government bonds, therefore they have very low credit risk. While NAV fluctuations may occur initially due to interest rate movements, the risk is significantly reduced if held until maturity. This option is considered suitable for safety-conscious investors.
SDL Target Maturity Funds: SDL Target Maturity Funds invest in state government bonds. They may offer slightly better yields compared to Gilt Funds. The risk remains limited, but it’s important to consider liquidity and interest rate fluctuations. This fund is suitable for investors seeking balanced returns.
PSU and Bharat Bond Target Maturity Funds: These funds invest in bonds of public sector undertakings (PSUs) and government-backed entities, where government support is present. The risk level is low to moderate, and returns are typically slightly better than Gilt Funds. This option is useful for those seeking secure and stable income.

Key Risks Associated with Target Maturity Funds

Interest Rate Risk: If interest rates change before maturity, the fund’s NAV may fluctuate. This fluctuation can be more pronounced in longer-term funds.
Early Exit Risk: These funds are open-ended, but if an investor withdraws money prematurely, the prevailing market conditions at that time can affect the returns.
Reinvestment Risk: When reinvesting after the fund matures, interest rates may be lower, which could limit future returns.
Tracking Error: Since these are index-based funds, the fund’s performance may sometimes deviate slightly from its underlying index.
Liquidity Risk: In some schemes, low trading volume can slightly impact the NAV at the time of exit, especially during periods of market volatility.

Conclusion

Target Maturity Mutual Funds are designed for investors who seek a defined timeframe and a relatively stable structure within the debt segment. The key features of these funds are their fixed maturity date and bond-based structure, which makes the investment behavior easier to understand. However, they are still subject to the impact of interest rate fluctuations, and should be viewed with that in mind. Overall, Target Maturity Funds offer a distinct approach to intelligently managing a debt portfolio.

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Frequently Asked Questions (FAQs)

What are Target Maturity Mutual Funds?
These are debt funds that have a fixed maturity date and track a bond index.
Do Target Maturity Funds give fixed returns?
No, their returns are not fixed; they depend on bond yields and interest rates.
Is the NAV stable in Target Maturity Funds?
The NAV is usually stable closer to maturity, but fluctuations are possible before that.
Can money be withdrawn before maturity?
Yes, these are open-ended funds, but early withdrawal may affect the NAV.
Are Target Maturity Funds risk-free?
They are not entirely risk-free, but the credit risk is generally low.

January 7, 2026

Best Performing Mutual Funds of the Last 10 Years

Short-term returns can be tempting in mutual fund investing, but they do not always reflect the complete picture. Markets fluctuate over time, and a fund that looks like a top performer today may not remain one in the future. That is why evaluating mutual fund performance over a longer period is important while selecting them. A decade-long track record shows how a fund has handled different market phases over time.

In this blog, we look at some of the best-performing mutual funds over the last 10 years.

What are Mutual Funds?

Mutual funds are a way to invest your money without having to pick individual stocks or bonds yourself. Your money is pooled together with other investors and managed by a professional fund manager, who invests it across shares, bonds, or other asset classes. Your risk is spread out because of diversification across multiple securities.

Why 10-Year Returns are Important – Reviewing a fund’s 10-year returns helps you see the bigger picture. Over a decade, markets go through multiple phases, rallies, corrections, and even crashes.A fund that performs well over this period demonstrates resilience across different market conditions. Long-term returns also tell you how consistent a fund has been and make it easier to ignore short-term noise.

List of Best Performing Mutual Funds of the Last 10 Years

S. No	Fund Name	Category	10 Year Returns (in%)	AUM	Current NAV	Fund Manager	Min SIP	Min Investment
1	Quant ELSS Tax Saver Fund	Equity -ELSS	21.47	12,514 Cr	426.2708	Ayusha Kumbhat/Sameer Kate	500	500
2	Nippon India Small Cap Fund	Equity – Small Cap	20.9	68,572 Cr	187.055	Samir Rachh	100	5,000
3	Invesco India Mid Cap Fund	Equity – Mid Cap	20.11	10,006 Cr	222.95	Amit Ganatra	500	1,000
4	Edelweiss Mid Cap Fund	Equity – Mid Cap	19.99	13,196 Cr	123.069	Trideep Bhattacharya/Dhruv Bhatia/Raj Koradia	100	100
5	Quant Small Cap Fund	Equity – Small Cap	19.99	30,170 Cr	275.0669	Ayusha Kumbhat/Sameer Kate	1,000	5,000
6	DSP Natural Resources and New Energy Fund	Equity- Thematic	19.78	1,467 Cr	108.836	Rohit Singhania	100	100
7	Kotak Midcap Fund	Equity – Mid Cap	19.46	60,480 Cr	159.316	Atul Bhole	100	100
8	HDFC Mid Cap Fund	Equity – Mid Cap	19.39	92,169 Cr	225.488	Chirag Setalvad	100	100
9	Nippon India Growth Mid Cap Fund	Equity – Mid Cap	19.15	42,042 Cr	4,656.03	Rupesh Patel	100	100
10.	SBI Technology Opportunities Fund	Equity-Sectoral	18.90	5,130 Cr	267.6166	Vivek Gedda	500	5,000

Overview of Top Performing Mutual Funds of the Last 10 Years

1. Nippon India Small Cap Fund

Nippon India Small Cap Fund is meant for investors who are comfortable taking higher risk in exchange for long-term growth. The fund was launched in 2010. It invests mainly in small and emerging companies that have the potential to grow over time. While returns can be volatile in the short term, the fund has rewarded investors who stay invested for longer periods and can handle ups and downs. Return since launch is 20.12%. Exit Load stands at 1% for redemption within 1 year. Benchmark is NIFTY Smallcap 250 TRI. Top holdings of the fund include MCX, HDFC Bank, SBI, Karur Vyasa Bank, BHEL, etc.

2. Quant ELSS Tax Saver Fund

Quant ELSS Tax Saver Fund is a good option for investors for long-term wealth creation, along with tax benefits under Section 80C. Launched in January 2013, the fund is managed by Quant Mutual Fund and follows an investment strategy that adapts to changing market cycles. The fund falls under the ELSS category and has a lock-in period of three years. It invests across large, mid, and small-cap stocks, offering diversification within equities. The benchmark of the fund is NIFTY 500 TRI Index.

3. Invesco India Mid Cap Fund

Invesco India Mid Cap Fund is designed for investors looking for long-term capital appreciation by investing in mid-cap Indian companies. The fund was launched in April 2007. The fund invests primarily in mid-cap stocks that offer a balance between growth potential and business stability. With a moderately high risk profile, it is suitable for investors who can stay invested for the long term. Return since launch is 21.55%. An exit load of 1% will be charged for redemption within 365 days. Top holdings of the fund include The Federal Bank, AU Small Fin Bank, L&T Fin, Swiggy, BSE, etc.

4. Edelweiss Mid Cap Fund

Edelweiss Mid Cap Fund aims to generate long-term capital growth by investing in fundamentally strong mid-cap companies. Launched in January 2013. It carries a moderately high risk profile. Return since launch is 22.07% and has 1% exit load for redemption within 90 days. Top holdings of the fund include Coforge, Persistent Systems, BSE, Indian Bank, etc. The benchmark of the fund is NIFTY Midcap 150 TRI.

5. Quant Small Cap Fund

Quant Small Cap Fund is suitable for investors seeking aggressive long-term growth through small-cap companies. The fund was launched in January 2013 and invests primarily in small-cap stocks across sectors and carries a high-risk profile. Return since launch is 17.51% annualized and has a 1% exit load for redemption within 365 days. Top holdings of the fund include Reliance, Jio Financial, RBL Bank, Aegis Logistics, Adani Power, etc. The Benchmark of the fund is NIFTY Smallcap 250 TRI.

6. DSP Natural Resources and New Energy Fund

This is a thematic equity fund suitable for investors looking to benefit from global and domestic trends in energy, commodities, and natural resources. The fund was launched in April 2007. The fund invests in companies related to natural resources, power, energy, and allied sectors. Due to its thematic nature, it carries a very high-risk profile. Returns since launch are 17.52%. Exit Load is nil. Benchmark is MSCI World Energy 10/40 Net TRI (35), BSE Oil & Gas TRI (35), BSE Metal TRI (30). Top Holdings are ONGC, Jindal Steel, Tata Steel, Black Rock Global Funds, Etc.

7. Kotak Mid Cap Fund

The fund was launched in September 2014. The fund invests across diversified mid-cap stocks and follows a bottom-up stock selection approach. With a moderately high risk profile, it is suitable for investors aiming for long-term wealth creation. Returns since launch are 20.60%. Exit Load 1% will be charged for redemption within 365 days. The Top Holdings of the fund are GE Vernova T&D, Fortis Healthcare, Mphasis, Ipca Laboratories, etc.

8. HDFC Mid Cap Fund

Launched in July 2007, it belongs to India’s most trusted and experienced mutual fund houses. The fund invests in quality mid-cap companies with sustainable business models and strong management. It carries a moderately high risk profile and is suitable for long-term investors seeking consistent growth through exposure to mid-sized companies. Returns since launch are 21.06%. Benchmark of the fund is NIFTY Midcap 150 TRI. Exit Load is 1% for redemption within 365 days. The Top Holdings of the fund are Max Financial, AU Small Fin Bank, The Federal Bank, Indian Bank, Balkrishna Ind., etc.

9. Nippon India Growth Mid Cap Fund

Nippon India Growth Mid Cap Fund is designed for investors looking to build wealth. It was launched in October 1995 and is one of the oldest mid-cap funds. With a moderately high risk profile and a proven long-term track record, it is suitable for investors. Returns since launch are 18.63%. Benchmark is NIFTY Midcap 150 TRI. Exit Load is 1% for redemption within 30 days. Top Holdings of the fund are BSE, Fortis, Federal Bank, AU Small Fin Bank, etc.

10. SBI Technology Opportunities Fund

This fund is meant for investors who want focused exposure to India’s fast-growing technology and digital sectors. Since it is a sector-focused fund, returns can be volatile in the short term. It is best suited for long-term investors who believe in the technology growth story. Returns since launch are 20.84%. Exit Load is 0.5% for redemption within 15 days. Benchmark is BSE Teck TRI. Top Holdings of the fund are Infosys, Bharti Airtel, Coforge, LTI Mindtree.

Conclusion

Strong 10-year returns do not guarantee future performance, but they do highlight funds that have shown consistency and discipline over time. Remember, these fund rankings can also vary and are subject to changes depending on multiple scenarios. For example, a change in fund manager may impact a fund’s performance positively or negatively. Also, match these funds with your goals, risk comfort, and investment horizon and consult your financial expert before making any investment decision.

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6	Best Money Market Mutual Funds in India
7	Debt Mutual Funds: Meaning, Types and Features
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9	Best Index Funds in India
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Frequently Asked Questions (FAQs)

Are mutual funds with high 10-year returns safe?
Not always, strong past returns show consistency, but every fund carries market risk.
Should I invest only based on past performance?
No. Past performance can be helpful, but you should also consider other factors like fund category, risk, objective, etc.
Is SIP better than a lump sum for long-term funds?
Although both modes of investment give similar returns, if you are a retail investor, SIPs will work better.
How often should I review my mutual fund investments?
You should review your mutual fund investments every 6 months.
Can beginners invest in long-term mutual funds?
Beginners can start with SIPs and focus on diversification of portfolio to spread out the risk.

January 7, 2026

Daily SIP vs Monthly SIP: Which SIP is Better?

Mutual funds as an investment option are gaining popularity because of their simplicity in creating wealth in the long run. There are two ways of investing in a mutual fund: lump sum and SIP. However, investors often get confused between a daily and a monthly SIP.

In today’s blog post, we will give you an overview of which one is better: daily SIP or a monthly SIP.

What is Daily SIP?

A daily sip is a mode of investing in a mutual fund in which an investor invests a particular amount on a daily basis instead of a monthly or quarterly basis. It spreads your investment evenly throughout the business days, which generally range from 20 to 22 days in a month. Daily SIP increases the benefit of rupee cost averaging. Start your investing journey with Pocketful for a smooth and disciplined experience.

Benefits of Daily SIP

The key benefits of daily SIP are as follows:

Rupee Cost Averaging: Through daily SIP, one can get the enhanced benefit of rupee cost averaging because the purchases through SIPs are executed daily.
Market Timing: As the investments are spread across the trading days, the impact of market volatility will be minimised.
Correction: In case of market correction, daily SIP invests more frequently at a lower NAV, which allows an investor to accumulate more units.

Disadvantages of Daily SIP

The key disadvantages of daily SIP are as follows:

Less Convenient: Daily SIP includes numerous transactions during a month, which makes it difficult for a retail investor to track, as they prefer simplicity.
Limited Availability: Not every mutual fund scheme offers a daily SIP option, as investors lack flexibility.
Cash Flow: Maintaining regular cash in one’s bank account is difficult and makes it inconvenient for a retail investor who receives a salary as a major source of income.

What is a Monthly SIP?

A monthly SIP is a systematic mode of investment in a mutual fund in which an investor invests a fixed amount every month in a scheme on a pre-defined date. It is one of the most common modes of SIP used by a retail investor. The units are allotted based on the applicable date of the NAV on which the SIP is deducted.

Read Also: SIP vs Lump Sum: Which is Better?

Benefits of Monthly SIP

The key benefits of monthly SIP are as follows:

Easy to Manage: As the SIP is deducted only once a month, therefore for a retail investor to manage and track the SIP investment.
Acceptance: Monthly SIPs are offered by all the asset management companies; hence, offering a wide range of choices to select from schemes.
Flexibility: Monthly SIPs can be paused, stopped or increased at any point in time depending upon the investor’s need.

Disadvantages of Monthly SIP

The disadvantages of a monthly SIP are as follows:

Less Effective: In case of a highly volatile market, the monthly SIPs are less effective as they do not capture the NAV movements.
Opportunity: Monthly SIPs can miss the opportunity to buy more units in case of a market correction.
Active Investors: Investors who seek active averaging or do not want to miss any opportunity related to any market correction can consider a daily SIP instead of a monthly SIP.

Difference between Daily and Monthly SIP

The key differences between daily and monthly SIP are as follows:

Particular	Daily SIP	Monthly SIP
Frequency	It is deducted on every trading session of a month.	Monthly SIPs are deducted only once a month.
Market Timing	Daily SIPs can time the market in a better manner.	Monthly SIPs time the market less efficiently.
Convenience	It is less convenient.	Monthly SIPs are very convenient.
Tracking	It is difficult to track daily SIP.	Comparatively, it is very simple to track a monthly SIP.
Availability	Daily SIPs have limited availability across fund houses.	Monthly SIPs are widely available and are offered in every mutual fund scheme.
Rupee Cost Averaging	It offers a higher benefit of rupee cost averaging.	It offers slightly less benefit of rupee cost averaging than daily SIPs.
Allotment of NAV	NAVs are allotted daily.	In a monthly SIP, NAVs are allotted once a month.

Best Mutual Funds for SIP

Funds	Expense Ratio (%)	AUM (Cr)	1 Yr Ret (%)	3 Yr Ret (%)	5 Yr Ret (%)	Latest NAV	52-Week High NAV	52-Week Low NAV	Exit Load (Period)	Minimum SIP Amount (INR)
HSBC Global Emerging Markets Fund	1.55	306	40.84	17.03	6.01	25.98	26.05	17.44	1.00 (365)	1000
Franklin Asian Equity Fund – Regular Plan	2.54	297	22.57	12.2	3.1	35.32	35.66	25.9	1.00 (365)	500
Quant BFSI Fund – Regular Plan	2.32	729	22.16	—	—	19.27	19.27	13.77	1.00 (15)	1000
ICICI Prudential Nifty Auto Index Fund	0.94	176	21.08	30.24	—	21.88	22.09	15.61	—	1000
Tata Nifty Auto Index Fund – Regular Plan	1.11	102	20.77	—	—	12.44	12.56	8.89	0.25 (15)	100

(As of 26th December 2025)

Which one is better?

Investors who want consistent investment in the market without worrying about the daily bank balance can consider a daily SIP as an investment mode. On the other hand, those who want simplicity and convenience in investing can opt for a monthly SIP. Both of them offer rupee cost averaging benefits and are suitable for long-term wealth creation.

Conclusion

In conclusion, both daily and monthly SIPs are crucial tools for creating wealth in the long run. Daily SIPs are comparatively better than monthly SIPs in terms of rupee cost averaging, as investments are made more frequently. However, for a retail salaried individual, monthly SIPs are a better option, as they are easy to manage and straightforward. However, both of them are suitable only if the investments are made in a disciplined manner. Also, it is advisable to consult your investment advisor before investing.

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Frequently Asked Questions (FAQs)

Which is better daily or a monthly SIP?
Over a longer period of time, the difference in returns of daily and monthly SIPs is negligible. Hence, anyone can choose between them depending on their needs.
Do all funds offer daily SIP?
No, not all mutual fund schemes offer daily SIP. There are very few funds available in the market in which one can invest through a daily SIP.
Can I switch from a monthly SIP to a daily SIP?
Yes, you can easily switch from a monthly SIP to a daily SIP by stopping the monthly SIP and starting a new daily SIP at any time.
What is a daily SIP?
Daily SIP is a mode of investment in a mutual fund in which a fixed amount of money is deducted from the investor’s bank account daily or on a trading day and invested in the designated scheme or fund.
Are there any extra charges for a daily SIP?
No, there are no additional charges for any daily SIP. The fund expense ratio remains the same for both monthly and daily SIP.

January 5, 2026

Portfolio Manager vs Hedge Fund Manager: Key Differences

In today’s world, professional fund management plays a crucial role in creating wealth. There are various professionals available in the investment world who manage investors’ funds. Among them, portfolio managers and hedge fund managers are commonly chosen by the investors.

In today’s blog post, we will give you an overview of portfolio managers and hedge fund managers, along with the key differences between them.

What is a Portfolio Manager?

A portfolio manager refers to a person whose main job is to manage portfolios either on behalf of individuals or institutions. The portfolio of the portfolio manager comprises various types of assets such as equities, bonds, mutual funds, ETFs, etc. A portfolio manager usually works with mutual fund companies, pension funds, insurance companies, etc.

Features of a Portfolio Manager

The key features of a portfolio manager are as follows:

Diversify Portfolio: Their primary objective is to manage the portfolio and diversify it according to the investment objective.
Company Fundamentals: They must analyse the company’s fundamentals so that the correct investment can be made.
Risk and Return: A Portfolio manager should balance the risk and return of a portfolio. They try to generate maximum return by taking minimum risk.
Compliance: They must maintain compliance with the regulatory guidelines laid down by the agencies.

What is a hedge fund manager?

A hedge fund manager is a person who manages the pooled fund of different high-net-worth individuals. They primarily use advanced trading strategies which carry high risk to generate profit on investment. They do not worry about the market trend and change their strategies according to it.

Features of a Hedge Fund Manager

The key features of a hedge fund manager are as follows;

Complex Strategies: They develop complex investment strategies to generate returns.
Leverage: A Hedge fund manager uses leverage to enhance the return of the portfolio.
Short-Selling: They also use short-selling strategies to manage risk and market exposure actively.
Absolute Return: They do deliver absolute returns rather than benchmark-based returns.

Difference between Portfolio Manager and Hedge Fund Manager

The key differences between a portfolio manager and a hedge fund manager are as follows:

Particular	Portfolio Manager	Hedge Fund Manager
Investment	A portfolio manager primarily invests in different vehicles such as mutual funds, PMS, ETFs, etc.	A hedge fund manager invests in a hedge fund and an alternative investment fund.
Target Investors	Portfolio managers primarily target retail and institutional investors.	Hedge funds focus on high-net-worth and accredited investors.
Objective	Their objective is to generate long-term risk-adjusted return.	The objective of a hedge fund manager is to generate an absolute return irrespective of market conditions.
Strategy	A conservative investment strategy is used by portfolio managers.	Hedge fund managers use aggressive investment strategies.
Leverage	They do not use leverage.	Hedge fund managers use extensive leverage to enhance returns.
Transparency	Portfolio managers offer high transparency.	They offer comparatively lower transparency.
Fees	They charge a fixed fee.	Hedge fund managers charge performance-based fees.
Short Selling	Portfolio managers rarely use short-selling.	Short-selling is commonly used by hedge fund managers.
Risk	Investing with portfolio managers carries low to moderate risk.	Investing with a hedge fund manager carries high risk.

Who should invest with a portfolio manager?

Investment with a portfolio manager will be beneficial to the types of investors listed below:

Goal-Oriented: Investors who have long-term goals and want to create wealth over time can invest with the portfolio managers.
Conservative Investor: Portfolio managers work towards the preservation of capital; hence, they are best suited to investors who tend to have reduced volatility and predictable returns.
Liquidity: Most of the portfolio managers allow easy entry and exit, which makes them suitable for investors looking for liquidity in their portfolio.

Who should invest with a hedge fund manager?

The following are the types of investors who can invest with a hedge fund manager:

High-Net-Worth Investor: Hedge funds typically require a large ticket size or investment level; thus, they are only available to high-net-worth individuals.
Risk-Taking Investor: Because of complex trading strategies, hedge funds generally carry high risk. Therefore, investors with high risk tolerance can invest with a hedge fund manager.
Experienced: Investors who understand the market and are well-versed in the market dynamics and complex trading strategies can invest with a hedge fund manager.

Conclusion

To conclude, portfolio managers, as well as hedge fund managers, are important in investment and increasing wealth. They have different approaches to generating returns. On one hand, a portfolio manager is targeting long-term wealth generation and capital retention; on the other hand, a hedge fund manager is targeting absolute return through a wide range of aggressive trading and investments. The selection between them, however, is based on the risk profile of an investor and their investment purpose.

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5	Difference Between Large Cap vs Mid Cap Mutual Fund

Frequently Asked Questions (FAQs)

Who regulates the portfolio manager and hedge fund manager in India?
Securities and Exchange Board of India (SEBI) regulates portfolio managers and hedge fund managers.
What are the most common investment strategies used by the hedge fund manager?
Arbitrage, short-selling, derivatives, leverage, etc, are the most common investment strategies employed by a hedge fund manager.
Investing with a portfolio manager or a hedge fund manager, which is riskier?
The investment with hedge fund managers is usually regarded as risky due to leverage and complicated trading strategies, and the portfolio manager focuses on capital protection and stable returns.
Who charges more fees, a hedge fund manager or a portfolio manager?
Hedge fund managers charge higher fees because they use more complicated strategies of trading strategies; their fees are fixed fees and performance-based fees; the portfolio managers have a fee that is fixed fee only.
Can a hedge fund manager guarantee profit?
No, a hedge fund manager does not guarantee profit, as all the investments are market-linked.

December 31, 2025

What Is a Chit Fund?

Imagine you need Rs.30,000 for a medical emergency. But you don’t want the hassle of bank paperwork, and don’t want to pay high interest on a personal loan. What do you do? For millions of Indians: they turn to a Chit Fund.

You might have heard your parents or neighbors talk about “putting money in a chit.” But what is a chit fund? It is a system where a group of people come together to save money and help each other borrow money whenever they require it.

It is one of India’s oldest financial tools. Long before modern banks existed, villagers would pool money to help a neighbor in need. Today, this tradition has evolved into a big industry. In this blog, we will decode chit fund meaning, how chit funds work, and whether Indian chit funds are safe.

What is a Chit Fund?

A Chit Fund is a time-honored financial arrangement that effectively serves as a hybrid of both borrowing and disciplined saving. This is a formal contract between a manager also known as Foreman and a fixed group of individuals known as subscribers. This group agrees to contribute a predetermined, fixed amount of money every month for a fixed period of time, typically equal to the number of members, thus creating a revolving cash “pot” or “chit value” in each cycle. The main principle operating behind this is, every month one individual from the subscribers group gets to take a lump sum money of the pot, but the receiver is determined through a dynamic, competitive reverse auction (or draw of lots). In the auction, members who have instant needs of funds bid by offering a discount on the whole pot amount. The person that accepts the lowest sum (meaning who offers maximum discount) wins the pot amount for that particular month. Here a small commission is deducted by the foreman for managing the whole scheme, and the remaining amount is distributed equally amongst the subscribers of the scheme as dividend, this effectively reduces the net monthly installment for every member. The early winners access funds for urgent requirements (which acts as a loan) while winners that get late benefits of their continuous savings and higher dividends (this acts as an investment), with all subscribers continuing to pay their part till the cycle ends.

To understand how chit funds work, you need to know four simple terms:

Foreman: The organizer or manager. This can be a person or a company (like Shriram Chits). They collect the money, run the show, and keep records.
Subscriber: This is the member who puts money in.
Chit Value (The Pot): The total money collected in a month.
Dividend: This is the profit earned. When someone takes the pot early, they usually agree to take a little less money. The money they leave behind is shared with everyone else.This extra money reduces the next monthly payment.

How Chit Funds Operate

Group Formation: A Foreman (the organizer) sets up and manages the fund operations for a fixed period.
Monthly Contribution: Each participant contributes a set installment (e.g., Rs.5,000). The monthly Pot is formed by the total collection.(e.g., 20 members for Rs.5,000 = Rs.1,00,000).
The Auction: The Pot is bid by the members who need cash immediately. They win by agreeing to take the money at a discount.
The Dividend: The Foreman’s fee is paid by the amount saved from the winning bid and remaining amount is divided equally among all members as a Dividend.This dividend effectively reduces their next month’s payment.
Cycle Continues: This process repeats monthly until every member has had a chance to receive the total pooled amount once.

This system is dual-purpose: it functions as a Savings Tool and a Borrowing Option (if you take the lump sum early).

Benefits of Chit Funds

Easy to Join: A high credit score or stacks of income proof documents is not required. If the Foreman trusts you, you are in.
Forced Savings: We have to pay every month so discipline is required here which helps in building a big saving habit.
Emergency Cash: This acts like an instant loan. In an emergency, you can bid in the auction and get the money quickly without waiting for loan approvals.
Dual Benefit: Interest (dividends) are earned if you wait till the end. If you bid early, you get a loan. It serves both borrowers and savers.

Risks Involved in Chit Funds

The Vanishing Act: The biggest risk is joining an “Unregistered” chit fund run by a local guy. You might have very little legal power to get the money if he runs away with it.
Default Risk: If money is taken by Member A and then the monthly installments are stopped by him, then the loss has to be covered by the Foreman, but if too many people default, the whole system collapses.
Scams: “Chit Funds” is often used by many frauds to trick people. The famous Saradha Scam was operated as a Ponzi scheme that promised high fixed returns, which real chit funds never do.

Rules and Regulations

To protect everyone from scams, the government created the Chit Funds Act, 1982:

Registration is Mandatory: Every chit fund company should be registered with the State Government.
Security Deposit: Foreman must deposit 100% of the pot value in a bank account controlled by the Registrar before starting a chit group. This ensures that even if the company shuts down, the money is safe.
Commission Cap: The Foreman cannot charge more than a 5% fee (plus GST) for their services.
Dispute Resolution: If a problem occurs, then visiting a regular court is not required, the Registrar of Chits helps in such a situation for a faster solution.

How to Identify a Safe Chit Fund

Ask for the PSO Number: Every chit group has a “Previous Sanction Order” (PSO) from the Registrar, It is important to check it once.
Check for “Registered”: Join only those companies that are registered. Examples include Shriram Chits, Margadarsi, or government-run ones like KSFE (in Kerala) etc.
No “Double Your Money” Promises: A fixed return is never promised by a Real chit fund.The return depends on the auction. If someone promises a fixed profit then it is likely a scam.
Read the Agreement: An agreement shall be signed which should consist of details like date, amounts and penalties.

Chit Funds vs. Other Investments

Chit Fund vs Mutual Fund: Mutual funds are designed for long-term capital, delivering market-linked returns regulated by SEBI. Chit funds function as a system of forced saving with a mechanism for short-term internal loans.
Chit Fund vs Fixed Deposit: Fixed Deposits offer the maximum safety offered with fixed deposits and guarantees a fixed interest rate.Chit fund earnings are unpredictable as the final dividend depends on the bids placed by the members every month.
Chit Fund vs Recurring Deposit: They both require monthly contributions consistently. The primary distinction is that RDs are purely savings, while chit funds offer the ability to receive a lump-sum cash advance (borrowing) with the monthly auction.

Conclusion

One should invest in chit Funds but only if you choose a Registered Chit Fund. It is a beneficial tool for a small business owner, a freelancer, or someone who needs access to funds without begging a bank. It teaches discipline and helps you in emergencies. However, if looking for pure investment growth with zero effort, one must stick to Mutual Funds or Fixed Deposit.

The company’s license should be verified every time. It should be used for short-term goals (like buying a fridge or funding a wedding), not for retirement.

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Frequently Asked Questions (FAQs)

Is the money from a chit fund taxable?
The main prize money is not taxable because it is just your own savings coming back.
What happens if the Chit Fund company runs away?
If it is a Registered company, your money is safe. The Registrar holds a security deposit equal to the chit value, which can be used to pay you back.
Can a chit fund be left in the middle?
Yes, but it is costly. A substitute member should take the place, and the company usually charges a penalty (around 5%) for the exit.
Is a Chit Fund better than a Personal Loan?
Often, yes. Personal loans have high processing fees and strict interest rates. In a chit fund, the “interest” you pay is just the discount you bid, which often works out cheaper, and there is no processing fee.
How much return can one expect?
It varies because it depends on how desperate other members are to bid. Though one can expect a return of around 8% to 10% per year.

December 29, 2025

Top Specialized Investment Funds (SIFs) in India 2026

Investing has changed a lot over the past few years, and one of the recent additions in 2025 is the rise of Specialized Investment Funds (SIFs). With features of derivatives and the flexibility of mutual funds, SIFs give investors a dynamic way to handle different market conditions. In this blog, we will walk through what SIFs are, who they are ideal for, and the top SIFs launched in India so far.

What is SIF?

A Specialized Investment Fund (SIF) is a new kind of investment option in India that sits right between regular mutual funds and high-ticket PMS/AIF products. Consider it as a middle path: more flexible than a mutual fund but far more feasible than PMS or AIF, which usually require very large investments.

With SIFs, AMCs get the freedom to use more advanced strategies, like long-short investing, derivatives, or a mix of equity and debt, all under SEBI rules. And for investors, the entry barrier is much lower compared to PMS or AIF. SIFs start with a minimum investment of ₹10 lakh. They bridge a long-existing gap between MF & PMS/AIF.

Top Specialized Investment Funds 2026

1. Quant Mutual Fund – QSIF Range

Quant offers some of the most active strategies in the market.
Their SIF range includes:

Equity Long-Short Fund -Targets mid- and small-cap opportunities while using short positions to control risk.
Hybrid Long-Short Fund – A mix of equity, debt, and derivatives for a more balanced feel.
Equity Ex -Top 100 Long-Short Fund – Focuses on companies outside the top 100, with higher potential but higher volatility too.

2. Edelweiss Mutual Fund – Altiva SIF

Edelweiss runs its SIFs under the Altiva brand

Their main product is a Hybrid Long-Short Fund that spreads money across equity, debt, arbitrage, and even special situations.
It is curated in such a way that it can stay steady in both good and bad markets by managing risk smartly.

3. SBI Mutual Fund – Magnum SIF

SBI has created one of the most versatile SIFs called Magnum SIF.

Their core strategy is a Hybrid Long-Short Fund that shifts between equity, debt, and derivatives depending on market conditions.
The objective is to keep returns smoother rather than letting the portfolio swing wildly.

4. Union Mutual Fund – Arthaya SIF

Union MF offers its SIF under the name Arthaya SIF.

This platform blends equity, debt, and derivatives using a long-short approach.
It seems more measured and steady compared to the more aggressive AMCs.

5. Bandhan Mutual Fund – Arudha SIF

Bandhan AMC has stepped into the SIF with Arudha SIF.

The fund uses equity, debt, and derivative-based long-short strategies.
The idea is to offer something more flexible and advanced than a basic mutual fund.

6. ITI Mutual Fund – Divinity SIF

ITI MF runs its SIF under Divinity SIF.

The key offering is the Divinity Equity Long-Short Fund, which tries to capture upside while protecting the investors against downturns.
It uses long-short investing to balance growth and safety.

7. 60 ONE – Dyna SIF

360 ONE (formerly IIFL Wealth) offers its SIFs under the Dyna SIF brand. These funds follow long-short and multi-asset strategies with an institutional, risk-managed approach.

Read Also: Best Investment Options in India

Who Should Invest in SIFs?

Someone who wants more flexible strategies – If you feel traditional mutual funds are too boring and you are curious about derivatives, SIFs are a great option.
Anyone investing with a medium- to long-term mindset – SIFs generally work better if you are willing to stay invested for 3-5 years or more. Not ideal for someone who wants to exit quickly.
Investors comfortable with the ₹10 lakh minimum – Most SIFs require at least ₹10 lakh, so they’re a good fit for HNIs, seasoned investors, family offices, etc.
People who want MF transparency but PMS/AIF-style strategies – SIFs sit perfectly in the middle; you get the comfort of mutual fund regulation, but with the kind of strategies usually seen in PMS or AIF products.

Conclusion

Although SIFs are relatively new to the investment space, they have already gained popularity. If you do not have a problem with taking extra risk for a better overall investment strategy, then you should consider including SIFs as a part of your portfolio. Before investing, you should understand how they work, learn about the minimum investment amount and find a known fund house. With a long-term perspective, you will be able to add further strength and stability to your wealth-creation goals using SIFs.

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Frequently Asked Questions (FAQs)

What is the minimum investment for SIFs?
Most SIFs require a minimum investment of ₹10 lakh.
Are SIFs riskier than mutual funds?
Yes, they can be, because they use derivatives, long-short strategies, and dynamic allocations.
Can beginners invest in SIFs?
It is not recommended. SIFs are better suited for experienced investors who understand market risks.
Are SIFs regulated by SEBI?
Yes, SIFs are regulated by the SEBI.
How are SIFs different from PMS/AIF?
SIFs require lower investment, have more transparency, and are more accessible than PMS/AIF, but still offer advanced strategies.

December 26, 2025

Difference Mutual Funds and Hedge Funds?

In today’s world of investment, there are various options which confuses investors about which option is suitable for them. A few of such options include mutual funds and hedge funds, each offering different risk levels, strategies, and returns, making it essential for investors to understand their goals clearly.

In today’s blog post, we will give you an overview of mutual funds and hedge funds, along with their differences and in the end, will tell you which one is suitable for you.

What are Mutual Funds?

A Mutual Fund is an investment product which is offered by Asset management companies. In which the company collects funds from investors and appoints a fund manager to manage such funds by investing them in different assets, such as stocks, bonds, etc.

Features of Mutual Funds

The key features of a mutual fund are as follows:

Professionally Managed Funds: The funds invested by the investors are managed by professional fund managers, who have vast experience in fund management.
Diversified Portfolio: The fund is invested by the fund manager in different asset classes such as bonds, equity, gold, etc., which reduces overall risk.
Low-cost: The fees charged by the asset management company are very low compared to other investment options.
Affordable: One can start their investment in mutual funds by investing a minimum of INR 100 – 500.

What are Hedge Funds?

A Hedge Fund is managed privately by the fund manager that pools money from various HNI investors, including retail and institutional investors. They use aggressive strategies such as short-selling, derivatives, etc., to generate returns. The hedge funds have limited regulations, unlike mutual funds.

Features of Hedge Funds

The key features of hedge funds are as follows:

Aggressive Investment Strategy: Hedge funds employ high-risk, aggressive investment strategies, including short-selling, leverage, and derivatives.
HNI Investors: Retail and institutional investors who have high net worth can consider investing in hedge funds.
Performance Fees: Hedge funds generally charge performance-based fees, in addition to a fixed fee structure. However, the type of fees depends on the asset management company.

Difference Between Mutual Funds and Hedge Funds

The key differences between mutual funds and hedge funds are as follows:

Particular	Mutual Fund	Hedge Fund
Investor	Mutual funds are allowed for all kinds of investors, especially for retail investors.	Hedge funds are allowed for high-net-worth individuals and institutional investors.
Returns	These funds aim to outperform the benchmark or give returns similar to the benchmark.	Hedge funds aim to give a positive return in every market condition.
Strategies	Fund managers in mutual funds do not use any complex strategies.	Complex strategies such as derivatives, short-selling, etc., are used by the fund manager.
Regulated	Mutual funds are strictly regulated by the Securities and Exchange Board of India.	They are comparatively less regulated than mutual funds.
Transparency	Mutual funds offer high transparency with respect to portfolio disclosure, etc.	Hedge funds offer comparatively low transparency compared to mutual funds.
Fees	It charges low fees for managing funds.	Hedge funds charge higher fees when compared to mutual funds.
Minimum Investment	The minimum investment amount in mutual funds starts from INR 100.	In the case of hedge funds, the minimum investment amount is 1 crore.

Mutual Fund vs Hedge Fund – Which is better?

The decision between the mutual fund and the hedge fund will depend on the risk profile of the investor and their investment objective. They can invest in mutual funds in case they want to invest in a low-cost investment option with moderate risk and return. However, if you want to get a higher return and are willing to take a higher risk, then you can choose to invest in hedge funds; however, they charge higher fees than mutual funds.

Conclusion

On a concluding note, both mutual funds and hedge funds are suitable for different classes of investors. If you have a high net worth and are comfortable with taking high risk, then a hedge fund is a suitable investment option for you, as we know that with higher risk comes higher returns; therefore, hedge funds offer higher returns. Whereas, on the other hand, mutual funds are suitable for investors looking for investment products with moderate risk and returns. However, it is advisable to consult your investment advisor before making any investment decision, and require deeper market understanding, stricter eligibility, and patience to navigate complex strategies aimed at maximizing wealth while managing volatility and long-term financial goals effectively.

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5	ETF vs Index Fund: Key Differences You Must Know
6	Types of Mutual Funds in India
7	What is Debt Mutual Funds: Invest in the Best Debt Funds in India

Frequently Asked Questions (FAQs)

What are the key differences between mutual funds and hedge funds?
The key differences between mutual funds and hedge funds are related to their fees, investment amount, and fund management style.
Who can invest in hedge funds?
In hedge funds, all types of investors can invest their money, but they are generally open to accredited or high-net-worth individuals or institutional investors, because of their risky investment strategies.
What is the fee structure of hedge-funds?
Hedge funds charge higher fees than most other investment options. They follow two types of fee structure, which include fixed AUM-based fees, and the other one is performance-based fees; however, there are a few asset management companies which offer a combination of both types of fees.
What is the minimum investment amount for hedge funds and mutual funds?
The minimum investment required in mutual funds is INR 100, but in the case of a hedge fund, it is INR 1 crore.
Can hedge funds or mutual funds offer guaranteed returns?
No, hedge funds or mutual funds both of them do not offer guaranteed returns. The investment is made in market-related instruments, which can lead to volatility and inconsistent returns.

December 23, 2025

Best Nifty50 Index Funds in India

Investing in the stock market can be a rewarding and long-term wealth-building strategy. But for a beginner, it is difficult to identify which stock to invest in and to regularly monitor the portfolio. For such an investor, investment in a single fund known as the “Nifty50 Index Fund” can be a better choice.

In today’s blog post, we will make you understand the concept of Nifty50 Index Funds, along with the list of the best Nifty50 index funds in India 2026.

Meaning of Nifty50 Index Fund

A Nifty50 Index Fund is a type of mutual fund that mainly buys stocks of the 50 biggest companies on the Indian Stock Exchange based on market capitalisation. They are passively managed funds, and their portfolios are made up of the same companies as the Nifty50 Index. They do not wish to do better than the index; they simply want to replicate its performance.

Best Nifty50 Index Fund

Scheme Name	AUM (Crore)	Expense Ratio (%)	6 Months	1 Year	3 Years
UTI Nifty50 Index Fund Reg Gr	24335.81	0.17	14.14	2.32	14.22
HDFC Nifty50 Index Fund Gr	20929.71	0.20	14.12	2.28	14.19
Navi Nifty50 Index Fund Reg Gr	3436.14	0.06	14.19	2.39	14.27
Nippon India Index Fund Nifty50 Plan Growth Plan Growth Option	2606.59	0.07	14.18	2.40	14.23
Bandhan Nifty50 Index Fund Reg Gr	1952.97	0.10	14.18	2.39	14.25
Tata Nifty50 Index Fund Reg	1296.46	0.20	14.12	2.21	14.11
ABSL Nifty50 Index Gr Reg	1121.21	0.20	14.12	2.30	14.17
Kotak Nifty50 Index Fund Reg Gr	919.74	0.07	14.18	2.19	14.08
DSP Nifty50 Index Reg Gr	824.56	0.18	14.15	2.33	14.22
Motilal Oswal Nifty50 Index Reg Gr	738.34	0.51	14.15	2.34	14.26
Franklin India Index Fund NSE Nifty50 Index Fund Gr	737.22	0.25	14.06	2.32	14.13
Axis Nifty50 Index Fund Reg Gr	735.01	0.10	14.15	2.38	14.27
HSBC Nifty50 INDEX FUND Reg Gr	344.48	0.18	14.15	2.28	14.18
Edelweiss Nifty50 Index Reg Gr	186.71	0.05	14.18	2.37	14.12
Baroda BNP Paribas Nifty50 Index Reg Gr	61.3	0.55	14.03	2.18	–
ANGEL ONE Nifty50 INDEX FUND REG GR	36.03	0.2	–	–	–
Mirae Asset Nifty50 Index Fund Reg Gr	31.92	0.14	14.09	–	–
Kotak Nifty50 Equal Weight Index Fund Reg Gr	19.90	0.22	16.65	–	–
Bajaj Finserv Nifty50 Index Fund Reg Gr	8.21	0.9	–	–	–

(As of 08th October 2025)

While most Nifty50 index funds deliver very similar returns, the real difference lies in their expense ratios and fund sizes—so it’s wise to pick one that balances low costs with strong credibility.

How does the Nifty50 Index Fund Work?

The Nifty50 Index Fund works on the principle of replication. As it is a passively managed fund, the fund manager does not actively choose the stock; instead, it decides to invest the fund accumulated from the investor into the exact stocks of the Nifty50 Index in the same weightage.

Benefits of Investing in the Nifty50 Index Fund

The key benefit of investing in the Nifty50 Index Fund is as follows:

Diversification: An investor can easily diversify their portfolio by investing in only one fund.
Economical: As index funds are passively managed funds, their expense ratio is comparatively much lower than any other actively managed fund.
Low Risk: The portfolio of the Nifty50 Index Fund consists of the top 50 companies listed on the stock exchange; therefore, they are less volatile as the investments are made in fundamentally strong companies.
Rebalancing: As the Nifty50 index is balanced periodically, this saves the time and effort of monitoring the portfolio.

Risk of Investing in the Nifty50 Index Fund

The major risks involved while investing in Nifty50 Index Funds are as follows:

Market Risk: As the capital of investors is invested in the top 50 companies, the underperformance of the stock market can significantly impact the overall return of Nifty50 Index Funds.
Tracking Error: The Nifty50 Index Fund’s returns may not be the same as the Nifty50 Index’s returns because of tracking error. This can happen because of the fund manager’s cash reserves, the expense ratio, and delays in reinvesting dividends.
Limited Return: These funds post returns similar to the Nifty50 Index, as they are passively managed and do not claim to outperform the index. Therefore, it is suitable only for conservative investors.

Factors to Consider Before Investing in the Nifty50 Index Fund

The key factors which one must consider before investing in the Nifty50 Index Fund:

Investment Horizon: The typical investment horizon for the Nifty50 Index Fund is more than five years. Hence, one should consider its investment horizon as a key parameter before investing in the Nifty50 Index Fund.
Expense Ratio: The expense ratio is a key factor which can impact the returns of the Nifty50 Index Fund. Hence, one should opt for the fund which has the lowest expense ratio.
Risk Appetite: As the Nifty50 Index fund invests in the shares of the top 50 companies. And they are volatile, hence they can show volatility in your portfolio. Therefore, if you can handle the fluctuation in your portfolio, then only consider investing in it.

Who Should Invest in the Nifty50 Index Fund

Investment in the Nifty50 Index Fund is suitable for the following investors:

Minimum Cost: Investment in the Nifty50 Index Fund is suitable for investors who want to pay a minimum cost for their investment. As the Nifty50 Index Fund is passively managed, and has a minimum cost.
Risk Averse: The Nifty50 Index Fund is a good choice for an investor who wants to make more money by investing in stocks but also wants a safer option.
Long-term investor: Investors who generally have an investment horizon of more than five years can invest in the Nifty50 Index Fund.

Difference Between Nifty50 and Nifty50 TRI

The key differences between Nifty50 and Nifty50 TRI are as follows:

Particular	Nifty50	Nifty50 TRI
Meaning	It only includes the prices of the top 50 companies listed on Nifty.	Along with the prices, it also includes dividends distributed by those 50 companies.
Accuracy	As compared to the Nifty50 TRI Index, it is less accurate, as it does not include dividends.	It has high accuracy as it includes dividends.
Benchmark	It is rarely used as a benchmark by funds.	Nifty50 TRI is commonly used as a benchmark by almost all funds.
Dividends	It ignores the dividends distributed by companies.	It includes all the dividends distributed by the companies.

Conclusion

On a concluding note, A Nifty50 Index Fund is one of the easiest ways to start investing to allocate your money across India’s top 50 companies. A lot of investors like it because it’s low-cost, well-diversified, and not as volatile as funds that are actively managed. This means you should still pay attention to elements like the expense ratio and tracking error before you invest. Therefore, we suggest that you consult your investment advisor before making any investment decision in the Nifty50 Index Fund.

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4	How to Invest in ETFs in India – A Beginner’s Guide
5	What is Gold ETF? Meaning & How to Invest Guide

Frequently Asked Questions (FAQs)

What is a Nifty50 Index Fund?
A Nifty50 Index Fund is a type of mutual fund that follows the Nifty50. It puts money into the 50 biggest companies on the index (by market cap).
What makes Nifty50 different from Nifty50 TRI?
Nifty50 only shows changes in stock prices, but Nifty50 TRI (Total Return Index) also takes into account dividends paid by those companies.
What does the acronym TRI mean?
TRI stands for the Total Return Index (TRI). It includes both price changes and dividends.
What is Tracking Error in a fund?
The difference between an index fund’s return and the benchmark index is called the tracking error. It usually happens because of costs, cash flow, and other things.
Do Nifty50 Index Funds actively manage their investments or not?
These are passive funds. The fund manager doesn’t choose stocks; they just follow the index in the same way.

December 7, 2025

Best Index Funds in India 2026

If you want to start investing wisely in 2025, index funds can be an excellent option for you, especially if you are searching for the best index funds in India that offer stable and low-cost diversification. The demand for the top index funds in India is constantly growing today because these funds offer exposure to the entire market at a low cost and have the potential to deliver stable returns in the long term. Recently, SEBI has further tightened transparency related to tracking error and tracking difference, making it easier for investors to choose the right fund. In this blog, we will explore which top index funds in India are best in 2025 and how to choose them wisely.

What Are Index Funds and How Do They Work?

An index fund is a type of mutual fund that replicates the performance of a market index, such as the Nifty 50 or Sensex. This means the fund invests in the same companies included in that index and in the same proportions. Its goal is not to outperform the market, but to track its performance.

How Index Funds Work?

Investing in this fund means your money is invested in all the companies included in that index. The fund manager doesn’t select individual stocks; they simply update the portfolio when the index changes. This is why these funds have lower costs and their returns closely track the index.

10 Best Index Funds in India 2026

Below is a curated list of the best index funds in India that have shown strong consistency and long-term potential :

S.No	Fund Name	Current NAV	AMU(Cr.)	3Y Return Annualised (%)	Expense Ratio (%)
1	Motilal Oswal Nifty Midcap 150 Index Fund	₹38.10	₹2631	22.50%	0.26%
2	Nippon India Nifty Smallcap 250 Index Fund	₹33.13	₹2563	21.68%	0.35%
3	Nippon India Nifty Midcap 150 Index Fund	₹25.78	₹2030	23.47%	0.30%
4	DSP NIFTY Next 50 Index Fund	₹26.98	₹1135	17.96%	0.28%
5	Motilal Oswal Nifty Smallcap 250 Index Fund	₹38.17	₹1042	22.08%	0.33%
6	Kotak Nifty Next 50 Index Fund	₹20.37	₹809	17.74%	0.10%
7	Nippon India Nifty Next 50 Junior BeES FoF	₹26.26	₹631	17.78%	0.12%
8	ICICI Prudential Nifty Smallcap 250 Index Fund	₹17.34	₹571	21.92%	0.30%
9	Aditya Birla Sun Life Nifty Midcap 150 Index Fund	₹25.20	₹405	22.55%	0.44%
10	Aditya Birla Sun Life Nifty Smallcap 50 Index Fund	₹21.03	₹248	26.03%	0.46%

(as on 31st October, 2025)

1. Motilal Oswal Nifty Midcap 150 Index Fund

The Motilal Oswal Nifty Midcap 150 Index Fund is a good option for those looking to invest in mid-cap companies. This fund tracks the Nifty Midcap 150 Index, which comprises 150 strong and emerging companies in India. The fund’s portfolio is quite diversified and includes well-known companies such as BSE Ltd., Hero MotoCorp, Dixon Technologies, Suzlon Energy, PB Fintech, HDFC AMC, Coforge, Cummins India, Persistent Systems, and Fortis Healthcare. Motilal Oswal AMC was established on November 14, 2008, and today manages total assets of approximately ₹92.51 lakh crore. This fund is suitable for investors seeking stable and balanced returns over the long term without taking on excessive risk.

Fund Performance

Parameters	Value
Alpha	0.07%
Beta	1.00
Sharpe Ratio	1.03
P/E	32.22

(as on 31st October, 2025)

2. Nippon India Nifty Smallcap 250 Index Fund

The Nippon India Nifty Smallcap 250 Index Fund is a good option for investors looking to invest in small-cap companies. This fund tracks the Nifty Smallcap 250 Index, which comprises 250 emerging Indian companies that have the potential for rapid growth in the future. Its portfolio includes companies like Multi Commodity Exchange, Laurus Labs, CDSL, Delhivery, Radico Khaitan, and Kaynes Technology, all of which hold strong positions in their respective sectors. This fund is managed by Himanshu Mange and is operated by Nippon India Mutual Fund. This AMC has been operating since February 24, 1995, and manages assets worth approximately ₹573.67 lakh crore. This fund is suitable for investors who are seeking growth in small-cap stocks and are willing to take on a moderate level of risk.

Fund Performance

Parameters	Value
Alpha	-0.13%
Beta	1.02
Sharpe Ratio	0.83
P/E	34.23

(as on 30th September, 2025)

3. Nippon India Nifty Midcap 150 Index Fund

The Nippon India Nifty Midcap 150 Index Fund is designed for investors who want to participate in the growth of the mid-cap segment. This fund tracks the Nifty Midcap 150 Index and invests in 150 emerging Indian companies that have the potential to become large-cap companies in the future. Its portfolio includes companies such as BSE Ltd., Hero MotoCorp, Dixon Technologies, Suzlon Energy, PB Fintech, HDFC AMC, Coforge, Cummins India, Persistent Systems, and Fortis Healthcare. The fund is managed by Himanshu Mange and is offered by Nippon India Mutual Fund. This AMC has been active since February 24, 1995, and currently manages assets worth approximately ₹573.67 lakh crore. The fund is known for its low costs and stable returns.

Fund Performance

Parameters	Value
Alpha	-0.14%
Beta	0.99
Sharpe Ratio	1.01
P/E	32.17

(as on 30th September, 2025)

4. DSP Nifty Next 50 Index Fund

The DSP Nifty Next 50 Index Fund is an excellent fund for those who want to invest in the next line of companies after the large-cap companies. This fund tracks the Nifty Next 50 Index, which includes several strong and growing companies. Its portfolio includes companies like Hindustan Aeronautics, TVS Motor, Vedanta, Divi’s Labs, Britannia, Tata Power, Avenue Supermarts, and Indian Hotels, all of which are performing well in their respective sectors.

This fund is managed by Anil Ghelani and is operated by DSP Mutual Fund. The company has been operating since May 13, 1996, and manages assets worth approximately ₹192.79 lakh crore. This fund is a good option for those who are willing to take a moderate risk for stable returns.

Fund Performance

Parameters	Value
Alpha	0.88%
Beta	1.32
Sharpe Ratio	0.69
P/E	21.60

(as on 30th September, 2025)

5. Motilal Oswal Nifty Smallcap 250 Index Fund

The Motilal Oswal Nifty Smallcap 250 Index Fund is a straightforward and intelligent way to invest in small-cap companies. This fund tracks the Nifty Smallcap 250 Index, which includes companies with strong growth potential. Its portfolio includes companies like Multi Commodity Exchange, Laurus Labs, CDSL, Delhivery, and Radico Khaitan, which have consistently performed well in their respective sectors. The fund is managed by Swapnil P. Mayekar and is operated by Motilal Oswal AMC, which has been in operation since November 14, 2008. The company manages assets worth approximately ₹92.51 lakh crore. This fund is an excellent option for investors who want to benefit from the long-term growth potential of small-cap stocks.

Fund Performance

Parameters	Value
Alpha	0.21%
Beta	1.03
Sharpe Ratio	0.84
P/E	34.23

(as on 31st October, 2025)

6. Kotak Nifty Next 50 Index Fund

The Kotak Nifty Next 50 Index Fund is an excellent option for those who want to invest in companies that are next in line after the large-cap companies. This fund tracks the Nifty Next 50 Index, which comprises companies that have the potential to become part of the Nifty 50 in the future. The fund includes companies like Hindustan Aeronautics, TVS Motor, Vedanta, Divi’s Laboratories, Britannia, Tata Power, BPCL, and Indian Hotels, all of which have been consistently performing well. This fund is managed by Devender Singhal and is operated by Kotak Mutual Fund. The company has been operating since August 5, 1994, and manages assets worth approximately ₹492.72 lakh crore. This fund is a good option for investors who are looking for stable returns and are willing to take on a moderate level of risk.

Fund Performance

Parameters	Value
Alpha	0.88%
Beta	1.32
Sharpe Ratio	0.69
P/E	21.60

(as on 31st October, 2025)

7. Nippon India Nifty Next 50 Junior BeES FoF

Nippon India Nifty Next 50 Junior BeES FoF is an easy way for investors to gain exposure to the Nifty Next 50 Index without directly trading in the ETF. It is a Fund of Funds that invests almost entirely in the Nippon India ETF Nifty Next 50 Junior BeES. This provides investors with exposure to the next tier of growth companies within the large-cap segment. The majority of its assets are held in the ETF, with a small portion in TREPS (Tri-Party Repo) to maintain liquidity. The fund is managed by Himanshu Mange and operated by Nippon India Mutual Fund. This fund house has been operating since February 24, 1995, and manages assets worth ₹573.67 lakh crore. Its low expense ratio and simple structure make it an easy way to invest in the Next 50 index.

Fund Performance

Parameters	Value
Alpha	1.18%
Beta	1.30
Sharpe Ratio	0.70
P/E	21.79

(as on 30th September, 2025)

8. ICICI Prudential Nifty Smallcap 250 Index Fund

The ICICI Prudential Nifty Smallcap 250 Index Fund is designed for investors looking for long-term investment opportunities in small-cap stocks. This fund tracks the Nifty Smallcap 250 Index and invests in companies that are leaders in their respective sectors. Its portfolio includes companies such as Multi Commodity Exchange, Laurus Labs, CDSL, Delhivery, Radico Khaitan, and Kaynes Technology, which are steadily building a strong market position. The fund is managed by Nishit Patel and operated by ICICI Prudential AMC, which has been in operation since June 22, 1993. The company manages assets worth approximately ₹908.28 lakh crore. This fund is considered a stable and low-cost option in the small-cap segment.

Fund Performance

Parameters	Value
Alpha	-0.01%
Beta	1.02
Sharpe Ratio	0.83
P/E	34.23

(as on 30th September, 2025)

9. Aditya Birla Sun Life Nifty Midcap 150 Index Fund

The Aditya Birla Sun Life Nifty Midcap 150 Index Fund is a good investment option in mid-cap companies, suitable for investors seeking long-term growth. This fund tracks the Nifty Midcap 150 Index and invests in 150 strong and emerging companies in India. Its portfolio includes companies such as BSE Ltd., Hero MotoCorp, Dixon Technologies, Suzlon Energy, PB Fintech, HDFC AMC, Coforge, Cummins India, Persistent Systems, and Fortis Healthcare. The fund is managed by Priya Sridhar, while it is administered by Aditya Birla Sun Life AMC, which has been active since September 5, 1994, and manages assets worth ₹385 lakh crore

Fund Performance

Parameters	Value
Alpha	-0.04%
Beta	1.00
Sharpe Ratio	1.02
P/E	32.22

(as on 30th September, 2025)

10. Aditya Birla Sun Life Nifty Smallcap 50 Index Fund

The Aditya Birla Sun Life Nifty Smallcap 50 Index Fund is a good option for investors who want to invest in small but fast-growing companies. This fund tracks the Nifty Smallcap 50 Index and invests in 50 emerging Indian companies that have the potential for strong future growth. Its portfolio includes companies such as Multi Commodity Exchange, Laurus Labs, CDSL, Delhivery, Radico Khaitan, Kaynes Technology, Karur Vysya Bank, Crompton Greaves, Cholamandalam Financial Holdings, and CAMS. All of these companies are growing rapidly in their respective sectors and exhibit strong fundamentals. This fund is managed by Priya Sridhar and is operated by Aditya Birla Sun Life AMC, which was established on September 5, 1994. The company has assets under management of approximately ₹385 lakh crore. This fund is considered suitable for investors who are comfortable with the risks associated with growth investing in the small-cap segment.

Fund Performance

Parameters	Value
Alpha	3.17%
Beta	1.04
Sharpe Ratio	0.97
P/E	33.85

(as on 30th September, 2025)

How to Select the Best Index Fund in India

Choosing the best index fund becomes easier when you focus on a few proven factors :

Choosing the Index : First, decide which index you want to invest in Nifty 50, Nifty Next 50, or Nifty 500. If you are investing for the first time, the Nifty 50 is considered the best starting point as it covers large and stable companies.
Expense Ratio : The advantage of an index fund lies in its low cost. Always choose a fund with an expense ratio of 0.20% or less, so that it doesn’t significantly impact your returns in the long run.
Tracking Difference : Check how closely the fund’s return matches its index. If the difference is too large, the fund is not accurately tracking the index. Try to choose a fund that has consistently maintained a low tracking difference.
Fund Size (AUM) : Funds with a large AUM (Assets Under Management) are generally more reliable because they tend to have lower costs and better tracking. It’s wise to avoid very small funds.
Replication Method : Check whether the fund uses full replication or sampling. Funds that use full replication accurately track the entire index and usually deliver more precise results.

Common Mistakes to Avoid While Investing in Index Funds

Relying solely on past returns : Many investors select funds based solely on their past performance. However, with index funds, it’s crucial to consider the tracking difference and expenses (TER), as future returns depend on these factors.
Holding multiple funds tracking the same index : Sometimes, people buy different funds that track the same index. Doing so doesn’t provide any additional benefit; instead, it complicates the portfolio.
Ignoring tracking difference and AUM : If a fund has a small AUM or a high tracking difference, it can impact returns. Always check these two factors.
Frequently switching funds : The benefits of index funds are realized only when you maintain your investment for the long term. Frequently switching funds increases costs and reduces returns.

Conclusion

If you want to invest in the stock market without taking on too much risk, the best index funds in India offer a simple and dependable way to get started.. They allow you to invest in the entire market at once, and at a low cost. Just choose the right fund, be patient, and give your investment time to grow. In the long run, this small step can become a source of strong and reliable returns for you.
In the long run, selecting the best index funds and staying invested can build strong and reliable wealth.

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Frequently Asked Questions (FAQs)

What is an Index Fund?
An index fund is a type of fund that replicates a market index, such as the Nifty or Sensex.
Are Index Funds good for beginners?
Yes, absolutely. They are simple, low-cost, and easy to understand.
How much should I invest?
Start small; you can even begin with ₹100 or ₹500.
Which is better: Active or Index Fund?
If you prefer simplicity and lower costs, an index fund is better.
Can I start a SIP in an Index Fund?
Yes, invest a small amount every month, and it will gradually grow into a larger fund.

November 27, 2025

Category: Mutual Funds

Understanding Interest Rates

RBI Tools That Shape Interest Rates

1. Repo Rate

2. Reverse Repo Rate

3. Cash Reserve Ratio (CRR)

Factors Affecting Interest Rates

1. Inflation Pressure

2. Pace of Economic Activity

3. Availability of Money With Banks

4. Government Spending and Borrowing

5. Global Market Influence

How Interest Rates Impact Mutual Funds

1. Impact on Debt Mutual Funds

2. Impact on Equity Mutual Funds

3. Impact on Hybrid Mutual Funds

Understanding the Link Between Interest Rates and Mutual Funds

Tips to Protect Your Mutual Fund Investments During Interest Rate Changes

1. Match Fund Type With Rate Direction

2. Avoid Frequent Switching

3. Keep Equity Investments Goal Focused

4. Use Asset Allocation to Reduce Risk

5. Review, Do Not Panic

Conclusion

Frequently Asked Questions (FAQs)

o mutual fund returns change immediately when interest rates change?

Are debt mutual funds safe when interest rates are rising?

Should I stop SIPs in equity funds when interest rates rise?

Which mutual funds benefit most when interest rates fall?

Can interest rates alone decide mutual fund performance?

What Are Target Maturity Mutual Funds?

Best Target Maturity Mutual Funds to invest in India

1. HDFC Nifty G Sec July 2031 Index Direct Growth

2. Aditya Birla Sun Life CRISIL IBX Gilt Apr 2029 Index Fund Direct Growth

3 . Nippon India Nifty G Sec Jun 2036 Maturity Index Fund Direct Growth

4. SBI CRISIL IBX Gilt Index April 2029 Fund Direct Growth

5. SBI CRISIL IBX Gilt Index June 2036 Fund Direct Growth

6. HDFC Nifty G Sec Sep 2032 Index Direct Growth

7. ICICI Prudential Nifty SDL Dec 2028 Index Fund Direct Growth

8. Mirae Asset CRISIL IBX Gilt Index April 2033 Index Fund Direct Growth

9. ICICI Prudential Nifty G Sec Dec 2030 Index Fund Direct Growth

10. Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Sep 2028 Index Fund Direct Growth

Types of Target Maturity Funds Available in India

Key Risks Associated with Target Maturity Funds

Conclusion

Frequently Asked Questions (FAQs)

What are Target Maturity Mutual Funds?

Do Target Maturity Funds give fixed returns?

Is the NAV stable in Target Maturity Funds?

Can money be withdrawn before maturity?

Are Target Maturity Funds risk-free?

What are Mutual Funds?

List of Best Performing Mutual Funds of the Last 10 Years

Overview of Top Performing Mutual Funds of the Last 10 Years

1. Nippon India Small Cap Fund

2. Quant ELSS Tax Saver Fund

3. Invesco India Mid Cap Fund

4. Edelweiss Mid Cap Fund

5. Quant Small Cap Fund

6. DSP Natural Resources and New Energy Fund

7. Kotak Mid Cap Fund

8. HDFC Mid Cap Fund

9. Nippon India Growth Mid Cap Fund

10. SBI Technology Opportunities Fund

Conclusion

Frequently Asked Questions (FAQs)

Are mutual funds with high 10-year returns safe?

Should I invest only based on past performance?

Is SIP better than a lump sum for long-term funds?

How often should I review my mutual fund investments?

Can beginners invest in long-term mutual funds?

What is Daily SIP?

Benefits of Daily SIP

Disadvantages of Daily SIP

What is a Monthly SIP?

Benefits of Monthly SIP

Disadvantages of Monthly SIP

Difference between Daily and Monthly SIP

Best Mutual Funds for SIP

Which one is better?