However, a chess player has to frame an overall broad strategy, fit each piece within that, and, as a team, make the best of the unique abilities of each piece. Similarly, in investing, you have to frame an overall investment strategy, let each component contribute with its unique capabilities, and earn meaningful risk-adjusted returns at the portfolio level. The Nifty 50 Equal Weight Index funds can be best suited for such an investment strategy. In this article, we will understand the Nifty 50 equal weight index, the index funds based on it, how they differ from Nifty 50 market capitalisation index funds, performance comparison, and whether one should invest in it.
What is the Nifty 50 Equal Weight Index, and how is it different from the Nifty 50 Index?
The Nifty 50 Equal Weight Index is an alternative weighing index derived from the parent Nifty 50 Index. It has all the 50 constituents of its parent. However, the major difference is with regard to the weightage of each company and the sectoral concentration. The Nifty 50 Equal Weight Index assigns an equal weightage of 2% to each of the 50 companies, whereas the weights of Nifty 50 Index companies are based on their market capitalisation.
Note: The weightage of Nifty 50 Index constituents and Nifty 50 Equal Weight Index constituents is as of 30th November 2023
この記事は Investors India の January 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Investors India の January 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
5 Steps To Achieve Your Financial Goals
From a beach house, a Jaguar, to traveling the world – there are many things in life that we want to accomplish.
Microbiome: The Invisible Ecosystem Within us that Safeguards our Health
Imagine being able to heal yourself and build immunity against major diseases without relying on heavy medication. It sounds fantastic, right? Who wouldn’t want that? The key to achieving this lies in a fascinating area of research—our microbiome.
Gold ETFs: Attractive option for retail investors to take exposure to yellow metal
With the equity market experiencing volatility in August, investors are increasingly seeking to diversify their portfolios.
The Retail Revolution: How India's Stock Market Got a Makeover by the Common Man
In the annals of India’s financial history, the stock market has long been the playground of the big boys—mutual funds, insurance behemoths, and foreign portfolio investors (FPIs).
Strategies to adopt when the markets are at a high (for new and existing MF investors)
An investor must have a plan in place and, more importantly, stick to it regardless of shifting market conditions.
A Collaboration to keep Health FirstPNUT and IDA come together as One!
You reap what you sow! And if you sow health, you will reap a healthier tomorrow. Following the same lines, Personal Nutrition (PNUT) and Indian Dental Association (IDA) have come together as partners to promote complete health and nutrition for each individual! How things unfolded? Let’s explore.
Making a choice between equity and debt mutual funds for long-term goals
Mutual funds are quickly becoming a preferred investment choice for millennials.
ASK THE EXPERT
From last Financial Year, I have shifted to the new Tax Regime.
Flexi-cap Fund Vs Hybrid Fund
Investors in mutual funds can choose from equity, debt, or hybrid funds, each offering different risk and return profiles. Flexi-cap funds provide diversification across market capitalisations, while hybrid funds balance equity and debt for stable returns.
Neuroplasticity: You Can Teach An 'Old' Brain New Skill
A few decades ago, it was believed that the brain’s structure and functions were entirely dependent on genetics, age, and early childhood experiences.