Don’t miss the latest developments in business and finance.

Index funds a safe bet for the risk averse

INVESTING

Image
Sunil Nayanar Mumbai
Last Updated : Jan 28 2013 | 4:53 PM IST

Scheme Name

1 Year

3 Years

5 Years

Bank BeES

68.36

--

--

Junior BeES

56.52

--

--

HDFC Index Fund - Sensex Plus Plan

54.41

--

--

UTI Master Index Fund

50.23

30.87

8.72

Tata Index Fund - Sensex Plan - Option A

50.02

--

--

SENSEX Prudential ICICI Exchange Traded Fund

49.14

--

--

LIC MF Index Fund - Sensex Advantage Plan

48.56

--

--

Franklin India Index Fund - NSE Nifty Plan

48.51

--

--

Prudential ICICI Index Fund

47.73

27.85

--

UTI Index Advantage Fund - BSE Sensex Plan

47.55

28.87

--

Tata Index Fund - Nifty Plan - Option A

47.53

--

--

Franklin India Index Fund - BSE Sensex Plan

47.4

--

--

HDFC Index Fund - Sensex Plan

47.23

--

--

UTI Index Advantage Fund - Nifty Plan

47.1

27.78

--

S&P CNX NIFTY UTI NDR Scheme

46.48

--

--

UTI Nifty Fund

46.1

28.98

8.63

Birla Index Fund

45.08

--

--

Nifty BeES

44.26

28.56

--

SBI Magnum Index Fund

44.22

27.93

--

HDFC Index Fund - Nifty Plan

43.06

--

--

PRINCIPAL Index Fund

40.93

25.77

6.95

LIC MF Index Fund - Sensex Plan

40.7

--

--

ING Vysya Nifty Plus Fund

40.41

--

--

LIC MF Index Fund - Nifty Plan

37.14

--

--

Indices

S&P Nifty

44.79

27.19

7.69

BSE Sensex

49.06

29.39

8

CNX Midcap 200

100.77

52.61

26.76

Index vs diversified

Diversified funds

58.84

41.41

18.21

Index funds

47.7

28.51

8.47

Source: www.mutualfundsindia.com


The argument in favour of index funds is that if Indian markets are indeed moving upwards, then investing in index funds might be a good idea for the risk-averse investor.  It will ensure that the investor captures a reasonable amount of growth. At the same time it also removes the risks associated with several small and mid-cap stocks which form a good part diversified portfolios and have proved to be a kicker for their returns.  But the apprehension is that with several market segments like the mid-caps already having run up, diversified funds may not be able to sustain the kind of returns that they have managed so far.  Not everybody agrees. Sandip Sabharwal, head of equities at SBI Mutual Fund, notes that index funds are not without their drawbacks.  

Also Read

First Published: Jul 07 2005 | 12:00 AM IST

Next Story