Index funds are a type of mutual fund that tracks the performance of a specific market index, offering investors exposure to a diversified portfolio of assets within that index. In India, index funds have gained popularity due to their ability to provide a well-managed and low-cost investment approach. One category within index funds is Small Cap Index Mutual Funds, which aim to replicate the performance of small-cap indices like NIFTY Smallcap 250 and BSE 250 Smallcap.
Some notable performers in the Small Cap Index Mutual Fund category, based on data from Mint, include Motilal Oswal Nifty Smallcap 250 Index, Nippon India Nifty Smallcap 250 Index Fund, and Motilal Oswal Nifty Midcap 150 Index Fund. These funds have shown promising returns for investors over the past one and three years.
Let’s delve into the performance details of Motilal Oswal Nifty Smallcap 250 Index Fund Regular Growth. In the last one year, the fund yielded a return of 53.33%, slightly below the Nifty 250 Index annual return of 54.97%. Over a three-year period, the fund delivered a return of 30.69%.
The fund’s portfolio comprises stocks from various companies, including BSE Ltd., Cyient Ltd., KEI Industries Ltd., Angel One Ltd., Infrastructure Development Finance Company Limited, RBL Bank Ltd, Multi Commodity Exchange Of India Ltd., Central Depository Services (India) Ltd., and Sonata Software Ltd.
Similarly, Nippon India Nifty Smallcap 250 Index Fund Reg Growth displayed a one-year return of 53.06%, trailing the Nifty 250 Index annual return of 54.97%. Over three years, the fund provided a return of 30.68%.
The fund’s portfolio includes stocks from companies such as BSE Ltd., Cyient Ltd., KEI Industries Ltd., Angel One Ltd., Infrastructure Development Finance Company Limited, RBL Bank Ltd, Multi Commodity Exchange Of India Ltd., Central Depository Services (India) Ltd., and Sonata Software Ltd.
In the case of Motilal Oswal Nifty Midcap 150 Index Fund Regular Growth, it delivered a one-year return of 47.02%, slightly below the Nifty Midcap 150 Index annual return of 48.35%. Over a three-year period, the fund yielded a return of 27.65%. This fund’s portfolio is likely to include stocks from mid-cap companies within the Nifty Midcap 150 Index.
Investors considering these index funds should carefully assess their investment goals, risk tolerance, and the specific assets held within each fund’s portfolio to make informed decisions aligning with their financial objectives.
