How is my fund matched to an index fund?

The tool maps your active fund's stated benchmark (e.g. Nifty 50 TRI, Nifty 500 TRI) to the same benchmark, then picks the Direct-plan index fund tracking it with the lowest expense ratio. If no index fund tracks your fund's benchmark yet, the tool tells you rather than guessing.

Why compare 5-year returns specifically?

5-year rolling returns smooth out short-term volatility and give a fairer read on whether active management has added value over a full market cycle, compared to 1-year or 3-year windows which can be skewed by a single good or bad year.

What if my active fund has beaten the index?

The tool will show that your fund's 5-year return matches or exceeds the index fund's — no ₹ gap is calculated in that case, since there's no shortfall to estimate.

Does a lower expense ratio always mean a better outcome?

Not necessarily on its own — a lower expense ratio only helps if the fund's actual returns are comparable or better. This tool compares actual 5-year returns, not just cost, so the ₹ gap reflects real historical performance difference, not just the fee saving.

Is this the same as investing directly in the index?

No — this compares your fund against an index mutual fund (an open-ended fund that tracks the index), not a direct market investment. Index mutual funds carry their own small expense ratio and tracking error, which is already reflected in the index fund's own return figures used here.

Portfolio Management

Index vs Active Fund Checker

Check whether your actively managed equity mutual fund has actually beaten its benchmark index over 5 years, and see the ₹ cost if it hasn't. Free calculator for Indian investors.

Your active equity fund

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What is Index vs Active Fund Checker?

Most actively managed equity mutual funds charge a much higher expense ratio than a passive index fund tracking the same benchmark — often 1% to 2% more per year — on the promise that a skilled fund manager will beat the index enough to justify the extra cost. Historically, a majority of actively managed funds fail to clear that bar over long periods, especially in large-cap categories. This calculator compares your active fund's 5-year rolling return against the cheapest available index fund tracking its benchmark, and estimates the ₹ difference on your invested amount if the index fund would have actually done better.

How to use this tool

Search for and select your actively managed equity mutual fund.

Enter how much you've invested in it.

See its 5-year return compared against the matching index fund's 5-year return and expense ratio.

If the index fund would have earned more, see the estimated ₹ gap on your invested amount.

The Formula

Estimated 5Y Gap = Invested Value × [(1 + Index 5Y Return/100)^5 − (1 + Fund 5Y Return/100)^5]

Only shown when the index fund's 5Y return exceeds the active fund's 5Y return.

Key Benefits

✓See whether your active fund has actually earned its higher expense ratio.
✓Compare against the cheapest available index fund tracking the same benchmark, not a generic market average.
✓Free, instant, no signup required for a single-fund check.
✓Uses the same benchmark-matching and gain-estimation logic as FundSageAI's full Optimise feature.

Practical Example

Invested Value: ₹5,00,000 Active Fund 5Y Return: 11.2% | Matching Index Fund 5Y Return: 13.8% - Active Fund value after 5Y: ₹8,49,000 - Index Fund value after 5Y: ₹9,62,000 - Estimated 5Y Gap: ₹1,13,000

Common Questions

Frequently Asked Questions

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These calculators use assumptions.
Your portfolio uses facts.

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