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Cafemutual Index Funds Research for October 2022 shows that SBI Nifty Index Fund and UTI Nifty 50 Index Fund have the lowest tracking error of 0.03 in large cap category. This research carries tracking error of 55 index funds as on October, 2022.
Tracking error is the annualized difference between standard deviation of the fund and its benchmark. 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.
While Aditya Birla Sun Life Nifty Midcap 150 Index Fund has the lowest tracking error of 0.14 among mid cap space, the tracking error Aditya Birla Sun Life Nifty Small Cap 50 Index Fund and Aditya Birla Sun Life was 0.16, lowest across small cap index funds.
Here are the top 3 funds across all categories with the lowest tracking error.
Large Cap: Top 3 of total 31 schemes reported
|
Ranking |
Scheme Name |
Tracking |
|
1 (2 schemes) |
SBI Nifty Index Fund |
0.3 |
|
UTI Nifty 50 Index Fund |
||
|
2 (2 schemes) |
Navi Nifty 50 Index Fund |
0.4 |
|
Nippon India Index Nifty 50 |
||
|
3 |
HDFC Index Fund Nifty 50 Plan |
0.5 |
Mid Cap: Top 3 of total 3 schemes reported
|
Ranking |
Scheme Name |
Tracking |
|
1 |
Aditya Birla Sun Life Nifty Midcap 150 Index Fund |
0.14 |
|
2 |
Nippon India Nifty Midcap 150 Index Fund |
0.19 |
|
3 |
Motilal Oswal Nifty Midcap 150 Index Fund |
0.15 |
Small Cap: Top 3 of total 3 schemes reported
|
Ranking |
Scheme Name |
Tracking |
|
1 |
Aditya Birla Sun Life Nifty Smallcap 50 Index Fund |
0.16 |
|
2 |
Motilal Oswal Nifty Smallcap 250 Index Fund |
0.17 |
|
3 |
Nippon India Nifty Smallcap 250 Index Fund |
0.22 |
Factor Cap: Top 3 of total 7 schemes reported
|
Ranking |
Scheme Name |
Tracking |
|
1 |
DSP Nifty 50 Equal Weight Index Fund |
0.07 |
|
2 |
HDFC NIFTY50 Equal Weight Index Fund |
0.09 |
|
3 |
Nippon India Nifty 50 Value 20 Index Fund |
0.13 |
Thematic / Sectoral: Top 1 f total 2 schemes reported
|
Ranking |
Scheme Name |
Tracking |
|
1 |
Motilal Oswal Nifty Bank Index Fund |
0.13 |
|
2 |
Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund |
1.00 |
Debt Cap: Top 3 of total 5 schemes reported
|
Ranking |
Scheme Name |
Tracking |
|
1 |
IDFC CRISIL Gilt 2027 Index Fund |
0.29 |
|
2 |
IDFC CRISIL Gilt 2028 Index Fund |
0.60 |
|
3 |
Edelweiss NIFTY PSU Bond Plus SDL Apr 2026 50:50 Index Fund |
1.20 |
Interestingly, this research also includes the tracking difference of 55 index funds as of October, 2022. Tracking difference is simply the difference between returns generated by the fund and its benchmark.
In large cap space, Kotak Nifty Next 50 Index Fund and IDFC Nifty 50 Index Fund were the top two performers among 31 schemes with the tacking difference of -0.32 followed by UTI Nifty 50 Index Fund and Kotak Nifty Next 50 Index Fund with tracking differences of -0.34 and -0.41, respectively.
Aditya Birla Sun Life Nifty Midcap 150 Index Fund and Aditya Birla Sun Life Nifty Smallcap 50 Index Fund have the tracking difference of -1.05 and -0.88, lowest among mid cap and small cap category, respectively.
In debt space, Edelweiss NIFTY PSU Bond Plus SDL Apr 2026 50:50 Index Fund, Aditya Birla Sun Life Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund, and IDFC CRISIL Gilt 2028 Index Fund have the lowest tracking difference of -0.17, -0.24 and -0.34.
Here are the top 3 funds across all categories with the lowest tracking difference.
Large Cap: Top 3 of total 31 schemes reported
|
Ranking |
Scheme Name |
Tracking |
|
1 (2 schemes) |
Kotak Nifty Next 50 Index Fund |
-0.32 |
|
IDFC Nifty 50 Index Fund |
||
|
2 |
UTI Nifty 50 Index Fund |
-0.34 |
|
3 |
ICICI Prudential S&P BSE Sensex Index Fund |
-0.41 |
Mid Cap: Top 3 of total 3 schemes reported
|
Ranking |
Scheme Name |
Tracking |
|
1 |
Aditya Birla Sun Life Nifty Midcap 150 Index Fund |
-1.05 |
|
2 |
Motilal Oswal Nifty Midcap 150 Index Fund |
-1.19 |
|
3 |
Nippon India Nifty Midcap 150 Index Fund |
-1.25 |
Small Cap: Top 3 of total 3 schemes reported
|
Ranking |
Scheme Name |
Tracking |
|
1 |
Aditya Birla Sun Life Nifty Smallcap 50 Index Fund |
-0.88 |
|
2 |
Motilal Oswal Nifty Smallcap 250 Index Fund |
-1.59 |
|
3 |
Nippon India Nifty Smallcap 250 Index Fund |
-1.67 |
Debt: Top 3 of total 5 schemes reported
|
Ranking |
Scheme Name |
Tracking |
|
1 |
Edelweiss NIFTY PSU Bond Plus SDL Apr 2026 50:50 Index Fund |
-0.17 |
|
2 |
Aditya Birla Sun Life Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund |
-0.24 |
|
3 |
IDFC CRISIL Gilt 2028 Index Fund |
-0.34 |
Factor: Top 3 of total 7 schemes reported
|
Ranking |
Scheme Name |
Tracking |
|
1 |
Sundaram Nifty 100 Equal Weight Fund |
-0.81 |
|
2 |
UTI Nifty200 Momentum 30 Index Fund |
-0.96 |
|
3 |
Nippon India Nifty 50 Value 20 Index Fund |
-0.98 |
