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List of Top Sensex Index Funds to invest in 2022

  • Akshatha Sajumon
  • Feb 13 2022
  • 7 minutes
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An index fund is a type of mutual fund in which the portfolio is constructed by identifying and replicating the composition of a market index like Sensex, Nifty 50, etc. The index fund then invests in the stocks that make up the benchmark index and in the same proportion as in the index.

Index funds are the latest entrants in the market of risk-averse investors. These are transparent investment options that offer diversity at a lower cost and steady returns in the long run. Investors can own top stocks through an index fund as it replicates a market index and reflects the overall economic growth in the country. 

Read on to learn more about index funds and some top Sensex index funds in 2022.

What are index funds?

An index fund tries to replicate the performance of a market index by following its composition of stocks. These are also known as passive funds since they do not have active management by a manager. Thus, the expense ratio of index funds is far lower than the actively managed funds, and this makes them cost-efficient.

Index funds are new to the Indian investment market, however, more investors are getting attracted to this form of investment considering the diversification and low-cost features.

Why invest in Sensex index funds?

The Sensex is an Indian market index that was earlier known as the Bombay Stock Exchange (BSE). Sensex is made up of the 30 largest and most actively traded stocks on BSE and hence is considered as a benchmark for the stock market. One of the oldest stock indexes, Sensex, is mainly used by investors to observe the growth and development of specific industries and fluctuations of the Indian economy.

Index funds that follow the Sensex as benchmark index are known as Sensex index funds. Investors prefer to invest in Sensex index funds since they can easily get exposure to the stocks of top companies in the country without having to buy stocks of individual companies.

Top Sensex index funds to invest in 2022

Mentioned below are some top Sensex index funds in India:

HDFC Index Fund – Direct-Growth – Sensex Plan

About the fund

HDFC Index fund – Sensex plan is an open-ended scheme that replicates S&P BSE SENSEX Index. The Scheme is passively managed with stock investments in a proportion that is similar to their weights in the S&P BSE SENSEX Index. 

Inception Date January 01, 2013
Benchmark Name S&P BSE SENSEX
Fund Manager Mr. Arun Agarwal

 

Mr. Krishan Kumar Daga

Objective To fetch returns that are equivalent to the performance of the S&P BSE SENSEX Index, subject to tracking errors.

Sector Allocation

Here is a table of the fund’s top percentage allocation of investment across sectors:

Sectors Percentage Allocation
Financial  41.4%
Technology 18.54%
Energy 14.18%
FMCG 8.69%

Historical Returns of the Fund (annualised)

1-Year 2-Year 3-Year 5-Year Since Inception
56.06% 17.20% 15.32% 16.59% 13.47%

 

ICICI Prudential Sensex Index Fund – Direct Growth

About Fund

ICICI Prudential Sensex Index Fund – Growth is an open-ended fund that tracks and emulates the performance of the S&P BSE Sensex index. This is done through investment in the same stocks that are part of the Sensex index. 

Inception Date September 21, 2017
Benchmark Name S&P BSE SENSEX
Fund Manager Mr Kayzad Eghlim
Objective The fund objective is to track and replicate the performance of the S&P BSE Sensex index. This is done primarily by investing in the same stocks which constitute the Sensex index.

Sector Allocation

Here is a table of the fund’s percentage allocation of investment across major sectors:

Sector Percentage Allocation
Financial Services 41.15%
Technology 18.44%
Energy 14.11%
FMCG 8.61%

Historical Returns of the fund (annualised)

1-Year 2-Year 3-Year 5-Year Since Inception
57.53% 16.32% 13.92% 15.75% 12.99%

 

Tata Index Fund – SENSEX – Direct Plan

About the fund

This is an open-ended equity scheme tracking S&P BSE Sensex. Tata Index Fund is a passively managed fund that aims to provide returns that closely correspond to the returns of the Sensex. This fund option is rated as very high risk and it requires a minimum SIP investment of Rs. 500. Investors have to make a minimum lump-sum investment of Rs. 5,000.

Inception Date January 1, 2013
Benchmark Name S&P BSE SENSEX TRI
Fund Manager Sonam Udasi
Objective To offer long term capital appreciation by mirroring the S&P BSE Sensex returns by investing in stocks which comprises of S&P BSE Sensex. 

Sector Allocation

Here is a table of the fund’s percentage allocation of investment across major sectors:

Sector Percentage Allocation
Financial Services 41.61%
Technology 18.82%
Energy 14.1%
FMCG 8.64%

Historical Returns of the Fund (annualised)

1-Year 2-Year 3-Year 5-Year 10-Year
55.40% 17.29% 15.48% 16.51% 12.97%

 

LIC MF Index Fund – Sensex Plan – Direct Plan

About the fund

LIC Sensex Index Fund invests 98.93% of its funds in Indian stocks. Out of this, 87.79% is concentrated in large-cap stocks. It is ideal for investors who are looking for long-term capital growth. Investment is concentrated in equity instruments of S&P BSE Sensex Index stocks and is subject to tracking error.

Inception Date January 01, 2013
Benchmark Name S&P BSE Sensex TRI
Fund Manager Yogesh Patil

 

Ritu Modi

Objective The objective of the fund is to generate returns that are similar to the performance of the index S&P BSE Sensex. It aims to achieve this by investing in the respective index stocks.

Sector Allocation

Here is a table of the fund’s percentage allocation of investment across major sectors:

Sector Percentage Allocation
Financial 41.5%
Technology 18.6%
Energy 14.2%
FMCG 8.7%
Others 16.9%

Historical Returns of the Fund (annualised)

1-Year 2-Year 3-Year 5-Year Since Inception
55.56% 17.04% 15.02% 15.93% 12.63%

How to invest in Sensex Index Funds ?

Investors can now invest in the top Sensex index funds easily by using the Finity app. Here are the steps to be followed:

  1. Download  (Links at the bottom of this page) and launch Finity app on your smartphone
  2. Choose Équity on the home screen and click on ‘Index’ option in the next step
  3. Tap on ‘Invest’ against the selected fund option from the list
  4. Choose either ‘SIP’ or ‘Lump-sum’ investment and enter the amount of investment
  5. Provide your basic details as directed by the app
  6. Complete the payment procedure to start your investment

End Note

Investors prefer index funds because of lower expenses and other fees as compared to actively managed funds. Through passive management, index funds aim to match the risk and return of the market index. These are designed on the theory that in the long-term, the market outperforms individual or single investments.


Frequently Asked Questions

Which index fund is better: Nifty or Sensex?
The Sensex comprises 30 of the largest stocks while the NSE is made up of 50 equity stocks. While both are similar in the movements faced due to economic fluctuations, Nifty covers a wide range of sectors as compared to Sensex.

Can index fund investment make me rich?
There is no guarantee that index fund investments will make you rich. The returns generated from index funds depend on many factors such as the market index it tracks, economic situation, underlying stock performance, etc.

Is Index fund investment better than ETF?
ETFs involve lesser cost as compared to Index funds since the latter charge transaction fees along with a comparatively higher expense ratio. Investors can choose between the two as per their investment preferences and strategies.

Is it a good time to buy index funds?
Index fund investment timing depends on personal financial goals and investment strategy. There is no such thing as the perfect time to invest in index funds, however, some investors may prefer to observe market movements before making an investment.

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