HSBC NIFTY NEXT 50 INDEX FUND - Direct Growth

HSBC NIFTY NEXT 50 INDEX FUND - Direct Growth holds up reasonably well within 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 78/100.

Cost: At 0.39%, the expense ratio is roughly in line with the Index Funds category average of 0.39% — cost isn't a standout factor either way for this fund.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a negative Sharpe ratio of -0.08 — 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 17.37% 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.