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Top Passive Mutual Funds - Best Funds, Benefits & Risks

Passive mutual funds in India are investment schemes that aim to replicate the performance of a specific market index, such as the Nifty 50, or Nifty Next 50. Instead of actively selecting stocks, these funds invest in the same companies and proportions as their chosen benchmark index.

Top Passive Mutual Funds in 2025

List of Mutual Funds for Passive Investors

Here's the list of top mutual funds for passive investors in India.

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Showing 1 - 20 of 22 results

last updated at 8:00 AM IST 
NameMFs (22)↓↓Sub CategorySub Category↓↓PlanPlan↓↓AUMAUM↓↓NAVNAV↓↓Absolute Returns - 3MAbsolute Ret. - 3M↓↓Absolute Returns - 1YAbsolute Ret. - 1Y↓↓CAGR 3YCAGR 3Y↓↓Expense RatioExpense Ratio↓↓Exit LoadExit Load↓↓VolatilityVolatility↓↓% Equity Holding% Equity Holding↓↓% Largecap Holding% Largecap Holding↓↓Sharpe RatioSharpe Ratio↓
1.UTI Nifty 50 Index Fund
UTI Nifty 50 Index Fund
Index Fund
Index Fund
Growth
Growth
25,747.56
25,747.56
181.58
181.58
5.28
5.28
7.38
7.38
12.64
12.64
0.17
0.17
-
-
12.06
12.06
99.98
99.98
99.36
99.36
0.44
0.44
2.HDFC Nifty 50 Index Fund
HDFC Nifty 50 Index Fund
Index Fund
Index Fund
Growth
Growth
21,978.33
21,978.33
252.52
252.52
5.25
5.25
7.31
7.31
12.61
12.61
0.20
0.20
0.25
0.25
12.05
12.05
99.95
99.95
99.29
99.29
0.33
0.33
3.ICICI Pru Nifty 50 Index Fund
ICICI Pru Nifty 50 Index Fund
Index Fund
Index Fund
Growth
Growth
14,886.67
14,886.67
272.97
272.97
5.25
5.25
7.30
7.30
12.59
12.59
0.19
0.19
-
-
12.04
12.04
99.96
99.96
99.30
99.30
0.33
0.33
4.SBI Nifty Index Fund
SBI Nifty Index Fund
Index Fund
Index Fund
Growth
Growth
11,312.47
11,312.47
241.38
241.38
5.24
5.24
7.28
7.28
12.61
12.61
0.19
0.19
0.20
0.20
11.98
11.98
100.85
100.85
100.19
100.19
0.32
0.32
5.HDFC BSE Sensex Index Fund
HDFC BSE Sensex Index Fund
Index Fund
Index Fund
Growth
Growth
8,961.24
8,961.24
809.40
809.40
5.76
5.76
6.28
6.28
11.73
11.73
0.20
0.20
0.25
0.25
11.95
11.95
99.92
99.92
99.92
99.92
0.24
0.24
6.Motilal Oswal Nifty India Defence Index Fund
Motilal Oswal Nifty India Defence Index Fund
Index Fund
Index Fund
Growth
Growth
3,892.07
3,892.07
10.23
10.23
1.70
1.70
15.63
15.63
-
-
0.44
0.44
1.00
1.00
29.61
29.61
100.22
100.22
52.21
52.21
0.57
0.57
7.Navi Nifty 50 Index Fund
Navi Nifty 50 Index Fund
Index Fund
Index Fund
Growth
Growth
3,714.63
3,714.63
17.02
17.02
5.28
5.28
7.43
7.43
12.68
12.68
0.06
0.06
-
-
12.02
12.02
99.91
99.91
99.26
99.26
0.34
0.34
8.Nippon India Index Fund-Nifty 50 Plan
Nippon India Index Fund-Nifty 50 Plan
Index Fund
Index Fund
Growth
Growth
2,863.63
2,863.63
47.60
47.60
5.28
5.28
7.44
7.44
12.65
12.65
0.07
0.07
-
-
12.05
12.05
99.96
99.96
99.31
99.31
0.45
0.45
9.Motilal Oswal Nifty 500 Index Fund
Motilal Oswal Nifty 500 Index Fund
Index Fund
Index Fund
Growth
Growth
2,661.58
2,661.58
27.54
27.54
3.85
3.85
3.98
3.98
14.84
14.84
0.17
0.17
1.00
1.00
13.41
13.41
100.00
100.00
70.47
70.47
0.09
0.09
10.DSP Nifty 50 Equal Weight Index Fund
DSP Nifty 50 Equal Weight Index Fund
Index Fund
Index Fund
Growth
Growth
2,390.58
2,390.58
27.40
27.40
3.83
3.83
9.17
9.17
16.33
16.33
0.41
0.41
-
-
12.76
12.76
100.00
100.00
98.04
98.04
0.57
0.57
11.Bandhan Nifty 50 Index Fund
Bandhan Nifty 50 Index Fund
Index Fund
Index Fund
Growth
Growth
2,111.38
2,111.38
57.76
57.76
5.27
5.27
7.43
7.43
12.66
12.66
0.10
0.10
-
-
11.98
11.98
99.95
99.95
99.30
99.30
0.33
0.33
12.Axis Nifty 100 Index Fund
Axis Nifty 100 Index Fund
Index Fund
Index Fund
Growth
Growth
2,019.81
2,019.81
23.62
23.62
4.62
4.62
5.42
5.42
12.93
12.93
0.21
0.21
-
-
12.42
12.42
99.96
99.96
95.87
95.87
0.18
0.18
13.ICICI Pru BSE Sensex Index Fund
ICICI Pru BSE Sensex Index Fund
Index Fund
Index Fund
Growth
Growth
1,963.68
1,963.68
28.24
28.24
5.76
5.76
6.29
6.29
11.72
11.72
0.20
0.20
-
-
11.94
11.94
99.92
99.92
99.92
99.92
0.24
0.24
14.Bandhan Nifty100 Low Volatility 30 Index Fund
Bandhan Nifty100 Low Volatility 30 Index Fund
Index Fund
Index Fund
Growth
Growth
1,835.92
1,835.92
16.47
16.47
2.33
2.33
8.14
8.14
15.63
15.63
0.35
0.35
-
-
10.70
10.70
100.18
100.18
94.14
94.14
0.43
0.43
15.HDFC NIFTY50 Equal Weight Index Fund
HDFC NIFTY50 Equal Weight Index Fund
Index Fund
Index Fund
Growth
Growth
1,611.09
1,611.09
18.59
18.59
3.81
3.81
9.13
9.13
16.31
16.31
0.40
0.40
-
-
12.75
12.75
100.35
100.35
98.38
98.38
0.49
0.49
16.Tata NIFTY 50 Index Fund
Tata NIFTY 50 Index Fund
Index Fund
Index Fund
Growth
Growth
1,480.71
1,480.71
175.59
175.59
5.22
5.22
7.25
7.25
12.53
12.53
0.20
0.20
0.25
0.25
12.03
12.03
99.96
99.96
99.31
99.31
0.43
0.43
17.DSP Nifty Top 10 Equal Weight Index Fund
DSP Nifty Top 10 Equal Weight Index Fund
Index Fund
Index Fund
Growth
Growth
1,441.04
1,441.04
10.38
10.38
7.51
7.51
5.20
5.20
-
-
0.25
0.25
-
-
12.38
12.38
99.82
99.82
99.82
99.82
0.21
0.21
18.Aditya Birla SL Nifty 50 Index Fund
Aditya Birla SL Nifty 50 Index Fund
Index Fund
Index Fund
Growth
Growth
1,213.43
1,213.43
269.47
269.47
5.29
5.29
7.36
7.36
12.61
12.61
0.20
0.20
-
-
12.06
12.06
99.98
99.98
99.32
99.32
0.44
0.44
19.Zerodha Nifty LargeMidcap 250 Index Fund
Zerodha Nifty LargeMidcap 250 Index Fund
Index Fund
Index Fund
Growth
Growth
1,178.37
1,178.37
14.36
14.36
4.41
4.41
5.38
5.38
-
-
0.27
0.27
-
-
14.28
14.28
100.03
100.03
54.90
54.90
0.20
0.20
20.Motilal Oswal BSE Enhanced Value Index Fund
Motilal Oswal BSE Enhanced Value Index Fund
Index Fund
Index Fund
Growth
Growth
1,037.84
1,037.84
27.13
27.13
9.83
9.83
9.45
9.45
31.17
31.17
0.40
0.40
1.00
1.00
18.11
18.11
100.27
100.27
72.57
72.57
0.44
0.44
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Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.

Selection criteria: Category: Equity | Sub-category: Index Fund | Filters: % Equity Holding: High, % Largecap Holding: High, Sharpe Ratio > 0 | AUM: Sorted from Highest to Lowest

Who are Passive Investors?

Passive investors are those who prefer a long-term and low-effort approach to investing. They usually invest in passive mutual funds like index funds or ETFs, which follow market indices such as the Nifty 50.
This approach, known as “buy and hold,” means investors purchase and keep their investments for years, without reacting to short-term market changes. The goal is to match market performance while keeping costs low and avoiding frequent trading.



What are Passive Mutual Funds?

Passive mutual funds in India are funds that try to match the performance of a market index like the Nifty 50. They don’t depend on active fund managers to pick stocks. Instead, they passively invest in the same companies that make up the index, in the same proportion.

Overview of the Top Passive Mutual Funds in India

UTI Nifty 50 Index Fund

UTI Nifty 50 Index Fund invests in the same 50 companies that make up the Nifty 50 Index. It aims to match the index’s performance by holding the same stocks in similar proportions.

HDFC Nifty 50 Index Fund

HDFC Nifty 50 Index Fund tracks the Nifty 50 Index and invests in its constituent stocks. The fund seeks to deliver returns that closely follow the movements of the index.

ICICI Pru Nifty 50 Index Fund

ICICI Prudential Nifty 50 Index Fund invests in all the companies that form the Nifty 50 Index. It aims to mirror the performance of India’s top 50 large-cap companies.

SBI Nifty Index Fund

SBI Nifty Index Fund invests in the stocks that make up the Nifty 50 Index. The fund’s returns move in line with the index, depending on market performance.

HDFC BSE Sensex Index Fund

HDFC BSE Sensex Index Fund invests in the 30 leading companies listed on the BSE Sensex. It seeks to reflect the overall performance of these major Indian companies.

How to Invest in Passive Mutual Funds?

Here’s how you can identify and invest in top passive mutual funds with Tickertape Mutual Fund Screener -

  1. Launch Tickertape Mutual Fund Screener.
  2. Click on filter, and choose “Index Fund”
  3. Sort out the top passive mutual funds based on over 50 fundamental and technical filters.
  4. After identifying the passive mutual fund that aligns with your investment thesis, click on “Place Order” to invest in the mutual fund.

With Tickertape Mutual Fund Screener, you can invest via ‘lumpsum’ or start a ‘SIP’ in passive mutual funds. Moreover, by connecting your portfolio, you can do a deep analysis of your portfolio and assess its performance.

Taxation of Passive Mutual Funds

Passive mutual funds, such as index funds and exchange-traded funds (ETFs), follow the same tax rules as <a href="https://www.tickertape.in/mutualfunds/equity">equity mutual funds</a>. Here are the taxation details for passive mutual funds in India:

Capital Gains Type Holding Period Tax Rate
Short-Term Capital Gains (STCG) Less than 12 months 20%
Long-Term Capital Gains (LTCG) More than 12 months 12.5%

Types of Passive Mutual Funds

Index Funds

Index funds track a specific market index like the Nifty 50, or Nifty Next 50. They invest in the same companies and in the same proportion as the index they follow.

Fund of Funds (FoFs)

Some passive mutual funds invest in other index funds or ETFs instead of directly in stocks or bonds. These are called Fund of Funds (FoFs) and are used to access specific indices, asset classes, or geographies through a single fund.

International Index Funds

International index funds invest in global indices such as the S&P 500 or NASDAQ 100. They allow investors in India to gain exposure to international markets through domestic mutual fund platforms.

Advantages of Investing in Passive Mutual Funds

Minimal Monitoring

Passive equity funds under the buy-and-hold strategy do not require frequent market tracking. The investment stays aligned with the chosen index, reducing the need for constant oversight.

Low Cost

Passive mutual funds have lower expense ratios compared to actively managed funds because they simply track a market index instead of relying on frequent trading or research-based stock picking. This helps investors retain more of their returns over time.

Transparency

Since passive funds follow a defined index, investors can easily see what securities are included and how the fund is performing relative to the benchmark. The portfolio rarely changes, which ensures clarity.

Consistent Market Representation

These funds mirror the performance of the broader market or specific segments. When the market rises, the fund’s value generally moves in the same direction, providing consistent exposure to market trends.

Reduced Human Bias

Passive funds are rule-based and not influenced by fund manager decisions or market timing attempts. This eliminates behavioural biases that can sometimes affect actively managed funds.

Risks of Investing in Passive Mutual Funds

Limited Liquidity

Funds under the buy-and-hold strategy may not be easily accessed during financial emergencies. Withdrawing early could affect returns or tax benefits.

Missed Opportunities

Active investors may benefit from short-term market movements. Passive investors, however, stay invested in the same index and might miss those opportunities.

Market and Performance Risks

Even though passive funds mirror established indices, they remain exposed to overall market volatility. There is no assurance that the underlying index or fund will deliver strong returns in every cycle.

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Factors to Consider Before Investing in Passive Mutual Funds

Investment Objective

Each passive mutual fund tracks a specific index such as the Nifty 50, or Nifty Next 50. Understanding the index helps investors know which part of the market the fund represents: large-cap, mid-cap, small-cap, or sector-based.

Risk Level

Even though passive funds are diversified, they still carry market risk because they move in line with the index they track. If the market falls, the fund’s value will also decline.

Tracking Error

Tracking error shows how much a passive fund’s returns differ from its benchmark index. A lower tracking error indicates that the fund closely mirrors the index’s performance, which is ideal for passive investing.

Index Selection

The chosen index determines the fund’s exposure. Broad indices like Nifty 50 offer stable large-cap exposure, while thematic or sectoral indices (like IT or Pharma) come with higher concentration risk.

Investment Horizon

Investors need to find out their investment horizon before choosing a passive mutual fund. The time period for which they plan to stay invested helps determine the suitable type of fund.

Conclusion

Passive mutual funds invest in the same companies that make up a market index like the Nifty 50. They offer an easy and low-cost way to take part in the stock market. These funds provide diversification and transparency since their portfolios closely follow the index. However, passive funds also move in line with the market, which means they can rise or fall depending on market conditions. That’s why investors must do thorough research. They can do that using the Tickertape Mutual Fund screener that comes with more than 50 pre-built filters to help analyse funds based on various parameters.

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Frequently Asked Questions About Passive Mutual Funds

  1. What are passive mutual funds?

    Passive mutual funds are investment schemes that track a specific market index, such as the Nifty 50 or Sensex. They aim to match the performance of the chosen index by investing in the same companies and in the same proportion.

  2. What are the best passive mutual funds?

    Here are the top passive mutual funds based on their 5Y CAGR:

    1. DSP Nifty 50 Equal Weight Index Fund
    2. Motilal Oswal Nifty 500 Index Fund
    3. Axis Nifty 100 Index Fund
    4. UTI Nifty 50 Index Fund
    5. Bandhan Nifty 50 Index Fund

    Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

  3. How can you invest in passive mutual funds?

    Here’s how you can start investing in passive mutual funds:

    1. Launch the Tickertape Mutual Fund Screener.
    2. Select the passive equity mutual fund that matches your investment goals and risk appetite.
    3. Click on “Place Order” and choose the “SIP” option. Enter your preferred SIP amount and confirm “OK”.

    Your order will be placed.

  4. Who should invest in passive mutual funds?

    Investors who want to invest in funds that track market indices can explore passive mutual funds. These funds mirror benchmarks like the Nifty 50 and invest in the same companies in the same proportion.
    Disclaimer: However, investors need to understand the risks associated with these funds, do thorough research and consult a financial advisor before investing.

  5. What are the potential risks of investing in passive mutual funds?

    Passive mutual funds carry market risk, as their performance depends on the movement of the underlying index. They also face tracking error risk, which occurs when fund returns differ slightly from the index due to fund expenses or cash holdings.

  6. Can I invest in passive mutual funds through SIPs?

    Investors can start a systematic investment plan (SIP) in most passive mutual funds. SIPs allow small, regular investments that help spread out market entry and maintain financial discipline.
    Disclaimer: Please note that this is not a recommendation. Please do your own research or check the SID of the specific fund to know more about SIP plans they offer.

  7. Where do passive mutual funds invest?

    Passive mutual funds invest in the same companies and weightage as the benchmark index they track. For example, a Nifty 50 index fund invests in the 50 companies that make up the Nifty 50 index, while a Sensex index fund invests in the 30 companies that form the BSE Sensex.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.