The Kotak Nifty SDL Apr 2032 Top 12 Equal Weight Index Fund reported a 3.3% return over the past three months, making it the top performer among debt-oriented index mutual funds, according to ACE MF data released on July 27. The fund has also achieved a compound annual growth rate (CAGR) of 7.4% over the last three years.
Key Details
In a separate report, the Motilal Oswal Nifty Microcap 250 Index Fund led other index funds with a notable 22.3% return over the past six months. This fund has delivered a CAGR of 19.5% over the same three-year period, reflecting strong performance in the microcap segment of the market.
Background
Both funds are part of a broader trend where index funds are gaining traction among investors seeking diversified exposure with lower costs. The success of these funds highlights the growing interest in passive investment strategies in India, where passive funds now account for 16% of mutual fund assets, according to recent reports.
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The strong performance of these index funds could attract more investments into the mutual fund sector, particularly among retail investors seeking stable returns. This trend may influence the overall sentiment in equity markets, particularly in the microcap and debt fund segments.
Investors will watch for upcoming quarterly results from key companies in the microcap sector, which could further impact fund performance and investor interest.