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Direct
Regular
Index Funds
Index funds aim to replicate the performance of a broader market, such as the Nifty 50, Sensex, sector/theme or fixed income index, minus the expense ratio and tracking error. Some categories of Index Funds may carry lower expenses as compared to actively managed mutual funds. Index funds provide a low-cost, low-maintenance way to participate in overall market growth, or any particular theme making them especially attractive for beginners, long-term investors, and those who prefer simplicity over trying to beat the market.
PGIM India CRISIL IBX Gilt Index Apr 2028 Fund
Index | Growth
NAV (12 Jun 2026)
₹
12.7175
-0.03%
Select time period tab
- Annualised Return
7.53% - Benchmark Return
- 7.93%
Risk Factor :
Low To Moderate
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Frequently Asked Questions
What is an Index fund?
Index Funds aim to mimic the performance of their underlying index. Index Funds (market cap based) invests in the same companies that are part of the index and in the same proportion (weight in the index). For instance, if stock A has 10% weight in the index, the Index Fund will also have the same weight in Stock A. Index Funds have to reshuffle the portfolio as and when the changes in the underlying index undergo. For instance, if Stock B is removed from the index, Index funds have to exit that stock.What types of Index funds are available?
Index Funds come in different forms depending on what they track. Some follow broad market cap indices like Nifty 50, Nifty 500, while others track specific sectors/themes like banking, metals, infrastructure, hospitals, pharma, automobile, IT, etc. There are also funds that track mid-cap or small-cap indices, as well as international indices such as the Nasdaq, Hang Seng, etc. Additionally, some Index Funds also track fixed income securities like government bonds, and precious metals such as gold, silver, etc.What is the difference between an index fund and an ETF?
Both Index Funds and ETFs track a market index, but they differ in how they are bought and sold. Index funds are purchased directly from the fund house at a price (NAV) determined at the end of the day, while ETFs are traded on stock exchanges like shares, with prices changing throughout the day. ETFs require a demat account, whereas Index mutual funds do not.Do I need a demat account to invest in index funds?
You do not need a demat account to invest in index mutual funds, as they can be bought directly through mutual fund platforms, MFDs, or apps or online investment platforms like MF Utility, MF Central etc. However, if you choose to invest in an ETF, you will need a demat account because ETFs are traded on the stock exchange.How are index funds different from actively managed funds?
Index Funds follow a passive investment strategy, meaning the Fund Manager simply aims to mirror the market index. Actively managed funds, on the other hand, have a fund manager who selects stocks with the goal of outperforming the market. Because of this, active funds tend to have higher costs and may or may not beat the Index, while Index funds aim to consistently match market performance at a lower cost.What are the advantages of investing in Index funds?
Index Funds are popular because they are low-cost, transparent, and easy to understand. They provide instant diversification since they invest in multiple stocks, and they do not depend on the skill of a fund manager. Over the long term, they tend to deliver returns that are very close to the underlying Index.What are the disadvantages of Index funds?
The main limitation of Index Funds is that they can never outperform the underlying index it is tracking, since their goal is only to match it, by minimising the tracking error. They also go down when the market falls, as they are fully exposed to market movements. Hence, downside protection is not available. Additionally, there is no flexibility to avoid poorly performing stocks within the index.What is tracking error in an Index Fund?
Tracking error refers to the difference between the return of the Index Fund and the return of the index it is tracking. Ideally, this difference should be very small, indicating that the fund is closely following the index. Higher tracking error means the fund is not accurately replicating the index.Are index funds safe investments?
Index Funds are considered relatively safer compared to investing in individual stocks because they spread risk across many securities. However, they are still subject to market risk, so their value can go up or down depending on market conditions. The degree of risk depends on the investment strategy, whether it is equity-oriented, debt, etc. Investors should review the fund riskometer to understand its risk profile.Who should invest in Index Funds?
Index Funds are well suited for beginners, long-term investors, and those who prefer a simple, low-maintenance investment approach. They are particularly useful for people who want market-linked returns without actively tracking or managing their investments.What options (direct/regular) are available in Index Funds?
Index Funds provide regular and direct plans. ETFs, on the other hand, are direct as they are directly bought/sold in the stock market.
