HDFC NIFTY Midcap 150 Index Fund - Growth Option - Direct Plan

HDFC NIFTY Midcap 150 Index Fund - Growth Option - Direct Plan ranks among the stronger performers in the Index Funds category, currently carrying a 3-star rating. It has delivered steady, if unspectacular, returns over a full market cycle. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 80/100.

Cost: At 0.35%, the expense ratio is meaningfully cheaper — about 13% below the Index Funds category average of 0.4% (based on 908 comparable funds). Lower costs compound in your favour over long holding periods.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a negative Sharpe ratio of -0.13 — over the past year, returns haven't kept pace with the volatility involved, even before accounting for the risk-free rate. Separately, annualised volatility of 16.89% is fairly typical for actively managed equity funds.

Who should invest: This fund is best suited to cost-conscious investors happy to simply match the market rather than try to beat it. The High risk rating means near-term volatility should be expected — this isn't a fund to check daily.