Index Funds are the ones which replicate the performance of a specific index like the NSE Nifty, BSE Sensex etc. This category is designed for the investors who want to invest through passive investment route. Passive investment means investment is done by the fund manager in the same securities as are there in the underlying index and in the same proportion too without changing the composition of the portfolio. Top performing Index funds are the funds with greater returns in the Index funds category.

1. Useful in economic downturn cycle when generating alpha becomes difficult for a fund manager in an actively managed scheme
2. Low cost investment vehicle because of its low expense ratio
3. Equity index funds are suitable for moderately aggressive to aggressive investors who may be new to equity investments and may have little knowledge of stock markets too but believe in its growth story & want to be driven by it
4. Investors should stay invested in an equity index fund with an investment horizon of atleast 5 years and in a debt index fund with an investment horizon of atleast 3 years