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Cafemutual Index Funds Research Desk August 2022 shows that SBI Nifty Index Fund and UTI Nifty 50 Index Fund have the lowest tracking error of 0.03.
In the midcap and smallcap space, Aditya Birla Sun Life Nifty Midcap 150 Index Fund and Aditya Birla Sun Life Nifty Smallcap 50 Index Fund have the lowest tracking error of 0.14.
The research desk reports the tracking error as on August 16, 2022 for 49 index funds.
Tracking error is the extent to which returns of an index fund has deviated from its underlying index. Statistically, tracking error is the difference between annualised standard deviation of the fund and its benchmark.
Since passive funds seek to replicate the index as closely as possible, a lower tracking error signifies better performance.
Here are the top 3 funds with the lowest tracking error across different categories.
Large Cap: Top 3 of total 34 schemes reported
Mid Cap: Top 3 of total 3 schemes reported
Small Cap: Top 3 of total 3 schemes reported
Flexi Cap: Top 2 of total 2 schemes reported
Factor: Top 2 of total 2 schemes reported
Thematic/Sectoral: Top 2 of total 2 schemes reported
Debt: Top 3 of total 3 schemes reported
Cafemutual Index Funds Research Desk August 2022 also captures details on AUM size, TER, tracking difference (1 year) and returns (1, 3 and 5 years). Click here to access the research desk.
