GEMGAZE
May 2015

Index mutual funds and their brethren, exchange-traded funds, have done better than most actively managed funds over time. There is a place in every portfolio for passively managed index funds or ETFs (or both) and actively managed mutual funds.

The sparkling GEMs among the index funds in India in 2014 have retained their preeminent status in 2015 also.

Goldman Sachs Nifty BeES Gem

Launched in December 2001, Goldman Sachs Nifty BeES, the first ETF in India, has an AUM of Rs 889 crore. Large caps rule the roost with 99.53% of the portfolio in large cap stocks. 99.53% of the assets are in equities. 60.5% of the assets are in the top three sectors, finance, technology, and energy. The one-year return of the fund is 22.34%, slightly trailing the category average of 25.43%. 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 102%.

ICICI Prudential Index Fund Gem 

The AUM of ICICI Prudential Index Fund, launched in February 2002, which has been hovering around Rs 73 crore last year, has reached Rs 91 crore at present. Large caps constitute 99.53% of the portfolio, with 98.79% of the assets in equity. The top three sectors, finance, technology, and energy, account for 54.89% of the portfolio. The one-year return of the fund is 24.09%, less than the category average of 27.34%. The returns of the fund are benchmarked against the CNX Nifty. The expense ratio of the fund is 0.76% and the portfolio turnover ratio is 11%.

Franklin India Index Fund Gem

The AUM of Franklin India Index Fund, launched in July 2000, is Rs 206 crores. Large caps constitute 99.53% of the portfolio, with 99.36% of the assets in equity. The top three sectors, finance, technology, and energy account for 60.15% of the portfolio. The one-year return of the fund is 23.35%, as against the category average of 27.34%. 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 29%.

Principal Index Fund Gem

Launched in June 1999, the AUM of Franklin India Index Fund is Rs. 19 crores. Large caps constitute 99.52% of the portfolio, with 99.55% of the assets in equity. The top three sectors, finance, technology, and energy account for 60.48% of the portfolio. The one-year return of the fund is 22.97%, as against the category average of 27.34%. 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 97%.

HDFC Index Sensex Plus Fund Gem

Launched in July 2002, HDFC Index Sensex Plus Fund sports an AUM of Rs 126 crore. This fund has always had a large-cap tilt with 88.92% in large caps and 98.25% in equity. The one-year return of the fund is 26.08% as against the category average of 27.34%. The top three sectors of the fund are finance, technology, and energy. 55.81% 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 21%.

UTI Nifty Index Fund Gem

The AUM of UTI Nifty Index Fund is Rs 236 crores. This open-ended passive fund was created by merging UTI Sunder and UTI Master Index fund on March 14, 2012. Large caps constitute 99.52% of the portfolio, with 99.06% of the assets in equity. The top three sectors, finance, technology, and energy account for 60.19% of the portfolio. The one-year return of the fund is 23.99%, as against the category average of 27.41%. The returns of the fund are benchmarked against CNX Nifty. The expense ratio of the fund is 1.06% and the portfolio turnover ratio is 62%.

Tata Index Nifty Fund Gem

Launched in February 2003, the AUM of Tata Index Nifty Fund is Rs 9 crores. Large caps constitute 99.5% of the portfolio, with 100% of the assets in equity. The top three sectors, finance, technology, and energy, account for 70.94% of the portfolio. The one-year return of the fund is 22.66% as against the category average of 27.41%. 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 8%.