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Best Passive Mutual Funds 2026: Fund Performance, NAV & Returns

Passive mutual funds in India are investment schemes that mirror a market index like the Nifty 50, Sensex, or Nifty Next 50, buying the same stocks in the same proportions. Unlike actively managed funds, they don't rely on a fund manager's stock-picking calls, which keeps costs low and returns closely tied to the market.

Top Passive Mutual Funds - Best Funds, Benefits & Risks

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 - 10 of 10 results

last updated at 8:00 AM IST 
NameMFs (10)↓↓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.ICICI Pru Nifty Next 50 Index Fund
ICICI Pru Nifty Next 50 Index Fund
Index Fund
Index Fund
Growth
Growth
10,116.69
10,116.69
67.82
67.82
4.37
4.37
8.42
8.42
16.83
16.83
0.39
0.39
-
-
16.65
16.65
99.87
99.87
85.60
85.60
0.28
0.28
2.UTI Nifty Next 50 Index Fund
UTI Nifty Next 50 Index Fund
Index Fund
Index Fund
Growth
Growth
7,546.56
7,546.56
27.09
27.09
4.49
4.49
8.66
8.66
17.06
17.06
0.43
0.43
-
-
16.67
16.67
99.97
99.97
85.69
85.69
0.33
0.33
3.Motilal Oswal Nifty India Defence Index Fund
Motilal Oswal Nifty India Defence Index Fund
Index Fund
Index Fund
Growth
Growth
5,176.93
5,176.93
12.97
12.97
8.37
8.37
31.48
31.48
-
-
0.56
0.56
1.00
1.00
23.82
23.82
100.06
100.06
52.18
52.18
1.00
1.00
4.HDFC NIFTY Next 50 Index Fund
HDFC NIFTY Next 50 Index Fund
Index Fund
Index Fund
Growth
Growth
2,708.94
2,708.94
17.25
17.25
4.46
4.46
8.52
8.52
16.79
16.79
0.36
0.36
-
-
16.67
16.67
99.94
99.94
85.65
85.65
0.33
0.33
5.SBI Nifty Next 50 Index Fund
SBI Nifty Next 50 Index Fund
Index Fund
Index Fund
Growth
Growth
2,366.06
2,366.06
20.24
20.24
4.50
4.50
8.62
8.62
17.02
17.02
0.37
0.37
0.25
0.25
16.53
16.53
100.10
100.10
85.80
85.80
0.29
0.29
6.Motilal Oswal BSE Enhanced Value Index Fund
Motilal Oswal BSE Enhanced Value Index Fund
Index Fund
Index Fund
Growth
Growth
2,219.02
2,219.02
27.13
27.13
-4.40
-4.40
10.12
10.12
20.25
20.25
0.52
0.52
1.00
1.00
17.50
17.50
99.76
99.76
77.00
77.00
0.35
0.35
7.Aditya Birla SL Nifty India Defence Index Fund
Aditya Birla SL Nifty India Defence Index Fund
Index Fund
Index Fund
Growth
Growth
1,398.18
1,398.18
14.16
14.16
8.42
8.42
31.48
31.48
-
-
0.46
0.46
0.05
0.05
23.89
23.89
100.04
100.04
53.07
53.07
1.15
1.15
8.DSP NIFTY Next 50 Index Fund
DSP NIFTY Next 50 Index Fund
Index Fund
Index Fund
Growth
Growth
1,351.95
1,351.95
28.91
28.91
4.48
4.48
8.61
8.61
16.99
16.99
0.36
0.36
-
-
16.64
16.64
102.61
102.61
87.28
87.28
0.30
0.30
9.Navi Nifty Next 50 Index Fund
Navi Nifty Next 50 Index Fund
Index Fund
Index Fund
Growth
Growth
1,313.65
1,313.65
17.38
17.38
4.49
4.49
8.55
8.55
16.95
16.95
0.26
0.26
-
-
16.65
16.65
99.83
99.83
84.92
84.92
0.29
0.29
10.Kotak Nifty Next 50 Index Fund
Kotak Nifty Next 50 Index Fund
Index Fund
Index Fund
Growth
Growth
1,222.07
1,222.07
21.39
21.39
4.48
4.48
8.72
8.72
17.09
17.09
0.26
0.26
-
-
16.66
16.66
99.82
99.82
84.91
84.91
0.34
0.34
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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

ICICI Pru Nifty Next 50 Index Fund

ICICI Pru Nifty Next 50 Index Fund tracks the Nifty Next 50 index, which represents the 50 large-cap companies ranked just below the Nifty 50. It offers exposure to companies that are often considered potential candidates for future Nifty 50 inclusion.

UTI Nifty Next 50 Index Fund

UTI Nifty Next 50 Index Fund tracks the Nifty Next 50 index, giving investors access to the 50 large-cap stocks ranked immediately after the Nifty 50 constituents. UTI is one of the earliest and largest index fund managers in India.

DSP Nifty 50 Equal Weight Index Fund

DSP Nifty 50 Equal Weight Index Fund tracks an equal-weight version of the Nifty 50, assigning the same portfolio weight to each of the 50 constituents regardless of market capitalisation. This results in relatively higher allocation to mid-sized Nifty 50 companies compared to a standard market-cap weighted index.

Motilal Oswal BSE Enhanced Value Index Fund

Motilal Oswal BSE Enhanced Value Index Fund tracks the BSE Enhanced Value Index, which selects stocks based on value-oriented factors such as price-to-earnings, price-to-book, and dividend yield. It offers a factor-based alternative to broad market index funds.

SBI Nifty Next 50 Index Fund

SBI Nifty Next 50 Index Fund tracks the Nifty Next 50 index, providing exposure to 50 large-cap companies outside the Nifty 50. SBI Mutual Fund is one of India's largest asset managers by AUM, and this fund is among the more widely held options in the Nifty Next 50 category.

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 active and 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

Lower Costs

Passive funds generally have lower fund management costs than active funds because they replicate an index rather than rely on continuous security selection and active portfolio decisions.

Broad Exposure

Index funds can provide exposure to entire benchmarks such as the Nifty 50, reducing dependence on individual stock selection while maintaining the index’s underlying market composition.

Growing Choice

India had 371 index fund schemes by May 2026, giving investors access to passive strategies spanning broad-market, sectoral, thematic, debt and other index categories.

Strategy Transparency

Passive portfolios track predefined indices, allowing investors to understand which securities drive performance rather than relying primarily on a fund manager’s discretionary stock-selection strategy.

Large Market

Index funds held about ₹3.37 lakh cr, while other ETFs managed roughly ₹9.75 lakh cr in May 2026, reflecting the growing scale of passive investing.

Risks of Investing in Passive Mutual Funds

Market Risk

Passive funds generally remain invested in line with their benchmark, so they participate in market declines and cannot shift substantially into defensive securities when the underlying index falls.

Tracking Error

Fund returns can deviate from their benchmark due to expenses, cash balances, corporate actions, and execution costs, making tracking error an important risk in passive investing.

Concentration Risk

Sectoral and thematic indices can have significant exposure to a limited group of companies or industries, while passive fund managers cannot independently diversify beyond the underlying index.

ETF Liquidity

ETFs trade on exchanges, so transaction prices can be affected by market liquidity and bid-ask spreads, particularly where trading volumes in individual ETF units remain relatively low.

No Stock Selection

Passive funds replicate their benchmark even when particular constituents face weakening fundamentals, because managers generally cannot exclude individual securities based solely on their own assessment.

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Factors to Consider Before Investing in Passive Mutual Funds

Tracking Difference

Investors can compare fund and benchmark returns over multiple periods. SEBI requires tracking-difference disclosures across specified tenures for passive schemes.

Expense Ratio

Costs directly affect how closely passive funds replicate benchmark returns. Comparing expense ratios is particularly relevant when multiple schemes track the same underlying index and have similar portfolios.

Index Selection

With 371 index funds available by May 2026, understanding whether a scheme tracks a broad-market, sectoral, thematic or other benchmark helps identify its underlying exposure.

Portfolio Concentration

Investors can review constituent and sector weights before selecting an index, since passive funds inherit concentration levels directly from their benchmarks rather than actively adjusting allocations.

Fund Structure

ETFs trade throughout market hours and generally require exchange transactions, while index mutual funds transact at end-of-day NAV and can be accessed through regular SIPs.

Fund Size

AUM can provide context on a scheme’s scale. However, it should be assessed alongside tracking quality, costs and liquidity rather than being viewed independently as a performance measure.

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 funds?

    The passive funds meaning refers to mutual fund schemes that track a specific market index, such as the Nifty 50 or Sensex. They aim to match index performance by investing in the same companies in similar proportions.

  2. What are passive index funds?

    Passive index funds are mutual funds that aim to replicate the performance of a specific market index, such as the Nifty 50, by holding the same securities in similar proportions. They generally involve limited active fund management and seek to deliver returns close to the underlying index, subject to expenses and tracking difference.

  3. What are the best passive mutual funds?

    Investors comparing the passive mutual funds list can evaluate schemes based on metrics such as 5-year CAGR, tracking difference, expense ratio and benchmark. As of 31st August 2026, some funds based on 5Y CAGR include:
    1. Motilal Oswal BSE Enhanced Value Index Fund
    2. Kotak Nifty Next 50 Index Fund
    3. UTI Nifty Next 50 Index Fund
    4. SBI Nifty Next 50 Index Fund
    5. Navi Nifty Next 50 Index Fund

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

  4. How can you invest in passive mutual funds?

    Here’s how you can start investing in passive 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.

  5. Who should invest in passive mutual funds?

    Investors researching active and passive funds can explore passive schemes if they prefer index-linked investing without active stock selection. These funds mirror benchmarks such as the Nifty 50 or Sensex.

  6. 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.

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

    Investors can start a systematic investment plan in most passive index funds in India schemes. SIPs allow regular investments at predetermined intervals, while returns continue to depend on movements in the underlying benchmark.

  8. Where do passive mutual funds invest?

    Passive mutual funds invest in securities represented by the benchmark they track. For example, passive index funds tracking the Nifty 50 generally hold the index’s constituent companies in corresponding or closely aligned weights.

  9. What are the top 10 passive mutual funds in India?

    The top 10 passive mutual funds in India based on AUM, as of 31st August 2026, include:
    1. UTI Nifty 50 Index Fund
    2. HDFC NIFTY 50 Index Fund
    3. ICICI Prudential Nifty 50 Index Fund
    4. SBI Nifty Index Fund
    5. ICICI Prudential Nifty Next 50 Index Fund
    6. HDFC BSE Sensex Index Fund
    7. UTI Nifty Next 50 Index Fund
    8. Motilal Oswal S&P 500 Index Fund
    9. Nippon India Index Fund Nifty 50 Plan
    10. Motilal Oswal Nifty Midcap 150 Index Fund

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

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.