Tata BSE Quality Index Fund Regular plan IDCW Reinvestment Option

Tata BSE Quality Index Fund Regular plan IDCW Reinvestment Option ranks among the stronger performers in the Index Funds category, backed by a 5-star rating. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 87/100.

Cost: At 0.42%, the expense ratio is roughly in line with the Index Funds category average of 0.41% — 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 -0.03 — 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 14.27% 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.