Best Nifty Index Funds

I want to know about index funds which follow the Nifty. Which are the top-performing funds in this category?
-Anand Agarwal

Index funds are not supposed to outperform or underperform; they're just supposed to replicate the index. When evaluating index funds, one has to look for funds that have been able to best replicate the index. Index funds are ETFs, and you need a demat account to buy them.

To track the Nifty, we would suggest you go for the Goldman Sachs Nifty ETF, which is the oldest and the best-performing fund with the lowest tracking error. A couple of other good Nifty index funds are Franklin India Index NSE Nifty, UTI Nifty, which is the largest Nifty tracker.

This article was originally published on May 31, 2012.