Nifty vs Sensex: Which index fund should you go with?

Index funds are no longer niche. They're mainstream — and for good reason. They're simple, low-cost and deliver what most investors need: reliable long-term exposure to the Indian stock market. And when it comes to index investing, the two names that dominate the conversation are funds investing in either Nifty 50 or the Sensex, which are the two most popular benchmarks in the country. That brings us to the natural next question: Are Nifty index funds better than the Sensex index funds? Let's settle this debate with data. Why Nifty and Sensex rule the roost If you're investing in an index fund in India, chances are it's tracking either the Nifty 50 or the Sensex. In fact, the two account for a whopping 73 per cent of all money invested in equity index funds and ETFs. Which means these two types of index funds have over a lick over 6 l

This article was originally published on April 15, 2025.