GEMGAZE

May 2014

 

If you want to invest in equity mutual funds but are not confident about the abilities of the fund managers, index funds are a good option for you. Index funds are equity funds that replicate a particular equity index by investing in the stocks that the index tracks. As each stock has different weightage in an index, the portfolio of an index fund is also allocated in a way to mirror that of the index. 

Four of the five sparkling GEMs among the index funds in India in 2013 have retained their preeminent status in 2014 also. Can Robeco Nifty Index Fund is out of the race by virtue of it having been merged with Can Robeco Largecap Fund. UTI Nifty Index Fund and Tata Index Nifty Fund have joined the elite group after a brief wait.

Goldman Sachs Nifty BeES Gem

 

Launched in December 2001, Goldman Sachs Nifty BeES, the first ETF in India, has an AUM of Rs 369 crore. Large caps rule the roost with 98% of the portfolio in large cap stocks. 99.8% of the assets are in equities. 58.77% of the assets are in the top three sectors, finance, technology, and energy. The one-year return of the fund is 13.48%, slightly trailing the category average of 14.68%. The returns of the fund are benchmarked against the CNX Nifty Index. The expense ratio of the fund is 0.54% and the portfolio turnover ratio is 64%.

 

ICICI Prudential Index Fund Gem 

 

The AUM of ICICI Prudential Index Fund, launched in February 2002, which has been hovering around Rs 96.5 crore during the past couple of years, has reached Rs 73 crore at present. Large caps constitute 98% of the portfolio, with 98% of the assets in equity. The top three sectors, finance, technology, and energy, account for 53.05% of the portfolio. The one-year return of the fund is 14.87%, slightly above the category average of 14.68%. The returns of the fund are benchmarked against the CNX Nifty. The expense ratio of the fund is 0.77% and the portfolio turnover ratio is 69%.

 

Franklin India Index Fund Gem

 

The AUM of Franklin India Index Fund, launched in July 2000, is Rs 132 crores. Large caps constitute 98% of the portfolio, with 99% of the assets in equity. The top three sectors, finance, technology, and energy account for 58.39% of the portfolio. The one-year return of the fund is 13.54%, as against the category average of 14.68%. The returns of the fund are benchmarked against the CNX Nifty. The expense ratio of the fund is 1.06% and the portfolio turnover ratio is 15%.

 

Principal Index Fund Gem

 

Launched in June 1999, the AUM of Franklin India Index Fund is Rs. 8 crores. Large caps constitute 98% of the portfolio, with 99% of the assets in equity. The top three sectors, finance, technology, and energy account for 58.87% of the portfolio. The one-year return of the fund is 13.82%, as against the category average of 14.68%. The returns of the fund are benchmarked against the CNX Nifty. The expense ratio of the fund is 1% and the portfolio turnover ratio is 94%.

 

HDFC Index Sensex Plus Fund Gem

 

Launched in July 2002, HDFC Index Sensex Plus Fund sports an AUM of Rs 79 crore. This fund has always had a large-cap tilt with 92% in large caps and 99% in equity. The one-year return of the fund is 14.22% as against the category average of 14.68%. The top three sectors of the fund are finance, energy, and technology. 55.33% of the assets are in the top three sectors. The fund is benchmarked against the S & P BSE Sensex. The expense ratio of the fund is 1.06% and the portfolio turnover ratio is 43%.

 

UTI Nifty Index Fund Gem

 

The AUM of UTI Nifty Index Fund is Rs 140 crores. This open-ended passive fund was created by merging UTI Sunder and UTI Master Index fund on March 14, 2012. Large caps constitute 98% of the portfolio, with 99% of the assets in equity. The top three sectors, finance, technology, and energy account for 58.49% of the portfolio. The one-year return of the fund is 13.52%, as against the category average of 14.68%. The returns of the fund are benchmarked against CNX Nifty. The expense ratio of the fund is 1.83% and the portfolio turnover ratio is 68%.

 

Tata Index Nifty Fund Gem

 

Launched in February 2003, the AUM of Tata Index Nifty Fund is Rs 5 crores. Large caps constitute 99% of the portfolio, with 100% of the assets in equity. The top three sectors, finance, technology, and energy, account for 59.04% of the portfolio. The one-year return of the fund is 12.82% as against the category average of 14.68%. The returns of the fund are benchmarked against CNX Nifty. The expense ratio of the fund is 1.77% and the portfolio turnover ratio is 11%.