Best Nifty 50 Index Funds to Invest in 2025

Index funds have emerged as popular choices for long-term growth at relatively low risk. In essence, index funds invest in securities with the same composition as market indices, offering diversified, cost-effective portfolios with good performance. This article will discuss the 10 best Nifty 50 index funds ranked according to one-year returns.

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Topics Covered

  • Best Nifty 50 Index Funds
  • Conclusion

Best Nifty 50 Index Funds

Here are the top picks for the best nifty 50 index funds for 2025:

1. Motilal Oswal BSE Enhanced Value Index Fund - Direct Plan-Growth

1-Year Return: 73.88%

This fund holds the top position by offering an exceptional return of 73.88%. Its portfolio adopts enhanced value strategies in the BSE index, making it a very good option for aggressive investors seeking high growth.

2. Kotak Nifty Smallcap 50 Index Fund - Direct Plan-Growth

1-Year Return: 57.38%

This fund invests in the Nifty Smallcap 50 Index, and smaller companies are expected to grow significantly. It is suitable for investors looking to diversify through small-cap investments.

3. Axis Nifty Smallcap 50 Index Fund - Direct Plan-Growth

1-Year Return: 57.29%

Axis' mutual fund also provides very similar returns and follows the Nifty Smallcap 50 Index. The fund's strict adherence to small-cap investments makes it a serious contender.

4. Aditya Birla Sun Life Nifty Smallcap 50 Index Fund - Direct Plan-Growth

1-Year Return: 56.7%

This scheme aims to achieve sustainable growth in the small-cap market segment. Its one-year returns reflect the fund's potential to capture new opportunities as they emerge in the market.

5. Motilal Oswal Nifty Microcap 250 Index Fund - Direct Plan-Growth

1-Year Return: 52.98%

This fund specializes in microcap stocks but offers excellent growth potential. Its remarkable one-year return makes it attractive to investors prepared to take on a higher risk for more rewards.

6. Nippon India Nifty Smallcap 250 Index Fund - Direct Plan-Growth

1-Year Return: 49.23%

Nippon India's fund offers exposure to an extended small-cap universe and provides excellent returns of over 49%. This fund is ideal for a moderate risk-taker focusing on long-term wealth generation.

7. ICICI Prudential Nifty Smallcap 250 Index Fund- Direct Plan-Growth

1-Year Return: 49.44%

ICCI Prudential ensures consistency in performance and diversification. It has proved its dependability in seizing the growth of the smaller-cap segment.

8. HDFC Nifty Smallcap 250 Index Fund - Direct Plan-Growth

1-Year Return: 49.29%

HDFC is a balanced choice in the small-cap segment and has been stable in providing returns with prudential risk management.

9. Motilal Oswal Nifty Smallcap 250 Index Fund - Direct Plan-Growth

1-Year Return: 49.71%

Motilal Oswal Trust comes out once more as a crystal clear expert in index funds. It targets the Nifty Smallcap 250 Index, ideally blending growth prospects with stability.

10. SBI Nifty Smallcap 250 Index Fund - Direct Plan-Growth

1-Year Return: 49.47%

The portfolio of this index fund is strong and has given investors a return of 49% in the last year. It is a trustworthy choice for investors who capitalize on the small-cap momentum.

Conclusion

These Nifty index funds have shown fantastic performance and are very good investment options for people looking to gain wealth from the stock market. Regardless of whether you're focused on small-cap and micro-cap or enhanced value strategies, you can consider these funds for substantial returns.`

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