Are you in your 20s, just starting your career, and wondering how to begin your investment journey? You’re not alone. For most first-time investors, the stock market can feel overwhelming—so many stocks, so much risk, and endless jargon.
That’s where Nifty 50 Index Funds come in.
These are simple, low-cost, and beginner-friendly investment options that can help you build long-term wealth without needing to be a stock market expert.
Let’s break it down.
A Nifty 50 Index Fund is a type of mutual fund that invests in the top 50 companies listed on the National Stock Exchange (NSE). These include big, stable names like HDFC Bank, Infosys, Reliance, and TCS.
Instead of trying to “beat the market,” a Nifty 50 index fund simply copies the Nifty 50 index, aiming to deliver similar returns. It’s a passive investment option—no fund manager is picking stocks. The fund automatically adjusts whenever the index changes.
When you invest in a Nifty 50 index fund, you don’t just own one or two companies—you get exposure to all 50 leading Indian companies across sectors like finance, IT, FMCG, energy, and more. This helps balance out risks. If one stock underperforms, others may perform better to balance things out.
For new investors, that kind of in-built diversification is a big win.
Unlike actively managed mutual funds, which charge higher fees for research and fund management, index funds have much lower expense ratios. That means more of your money stays invested and grows over time.
Over a long period, lower costs can make a big difference in your total returns—especially for salaried professionals starting with small SIPs.
No need to study balance sheets, follow company news, or make complicated decisions.
Just set up a Systematic Investment Plan (SIP), automate your monthly investments (as low as ₹500), and let your money work for you. These funds track the market, so you don’t have to.
It’s truly a “set-it-and-forget-it” way to begin your investing journey.
Over the years, the Nifty 50 index has delivered strong returns, often ranging between 10–14% annually. While there may be short-term ups and downs, the long-term trend has been positive—in line with India’s growing economy.
If you’re in your 20s, you have the biggest advantage of all—time. Thanks to the power of compounding, even small monthly investments can grow into a sizable corpus over 10–20 years.
As you can see, index funds are low-maintenance and cost-efficient—perfect for beginners who are just getting started.
| Fund Name | 1-Year Return | 3-Year CAGR | 5-Year CAGR | Expense Ratio | Min. SIP | AMC |
|---|---|---|---|---|---|---|
| Nippon India Nifty 50 Index Fund | 22.8% | 14.9% | 13.9% | 0.20% (Direct) | ₹100 | Nippon India MF |
| HDFC Index Fund – Nifty 50 Plan | 22.4% | 14.7% | 13.6% | 0.20% (Direct) | ₹500 | HDFC Mutual Fund |
| ICICI Prudential Nifty 50 Index Fund | 22.2% | 14.5% | 13.5% | 0.22% (Direct) | ₹100 | ICICI Prudential MF |
| UTI Nifty 50 Index Fund | 22.1% | 14.3% | 13.3% | 0.21% (Direct) | ₹500 | UTI AMC |
| SBI Nifty Index Fund | 21.9% | 14.1% | 13.2% | 0.18% (Direct) | ₹500 | SBI Mutual Fund |
| Tata Nifty 50 Index Fund | 21.8% | 14.0% | 13.1% | 0.23% (Direct) | ₹150 | Tata Mutual Fund |
| Kotak Nifty 50 Index Fund | 21.7% | 13.9% | 13.0% | 0.21% (Direct) | ₹100 | Kotak Mutual Fund |
| Axis Nifty 50 Index Fund | 21.5% | 13.8% | 12.9% | 0.20% (Direct) | ₹100 | Axis Mutual Fund |
| Aditya Birla SL Nifty 50 Index Fund | 21.3% | 13.7% | 12.8% | 0.23% (Direct) | ₹100 | Aditya Birla MF |
| Motilal Oswal Nifty 50 Index Fund | 21.2% | 13.6% | 12.7% | 0.24% (Direct) | ₹500 | Motilal Oswal AMC |
📌 Returns as of June 2025 | Past performance is not indicative of future returns. Please consult your advisor before investing.
Yes! Nifty 50 index funds are ideal for first-time investors because they are low-cost, easy to understand, and offer exposure to India’s top 50 companies in one fund. It’s a smart way to start investing in equities without needing to pick individual stocks.
While no investment is entirely risk-free, index funds are considered relatively low-risk in the equity category, since they are diversified and include well-established companies.
While returns vary with market conditions, Nifty 50 index funds have historically delivered 10–14% annual returns over the long term. They are best suited for long-term goals like wealth creation, home buying, or retirement.
For beginners, index funds like Nifty 50 are often better due to lower expense ratios, less risk of underperformance, and no dependency on a fund manager’s decisions. Many active funds fail to consistently beat the index after fees.
Yes, short-term market fluctuations can lead to temporary losses. However, since the fund holds top 50 large-cap companies, the risk is lower compared to mid or small-cap funds. Staying invested for 5+ years helps manage risk and maximize returns.
All you need is a Demat or mutual fund account. Once set up, you can choose a Nifty 50 index fund and start a SIP in minutes—right from your phone or laptop.
Absolutely! Many mutual fund platforms allow SIPs starting from ₹500. It’s a great way to build the habit of investing early.
You can start investing with as little as ₹100 to ₹500 per month through a SIP (Systematic Investment Plan). It’s flexible and fits well within a beginner’s monthly budget.
✅ Simple and easy to understand
✅ Low cost with solid long-term returns
✅ Broad diversification across India’s top companies
✅ Ideal for passive, first-time investors
If you’re someone who’s new to investing and wants a low-risk investment in India, a Nifty 50 Index Fund is a smart place to begin.
At Marfo Strategies, we help first-time investors take their first confident step into the world of investing.
✅ Open a free Demat or mutual fund account
✅ Explore the best-performing Nifty 50 index funds
✅ Set up easy SIPs and monitor your portfolio in one place
👉 Click here to get started with Marfo
No more confusion. No more delay. Start building your future—today.
