Nifty 500 Index Fund: Monetary advisors at the moment are suggesting Motilal Oswal Mutual Fund’s Nifty 500 Index Fund to traders preferring a streamlined fairness portfolio with fewer schemes. The Nifty 500 is favored as a result of it encompasses 91% of India’s market capitalization, versus the Nifty 50, which primarily focuses on large-cap corporations and solely covers 50% of the market-cap.
“Nifty 500 is an all seasons fund because it contains a variety of corporations spanning large-cap, mid-cap and small-cap segments.There isn’t any fund supervisor threat as it’s passively managed and comes at a low value,” Kunal Valia, founder, StatLane informed ET.
He mentioned that the fund could possibly be one of many main choices for any investor, offering an economical avenue for wealth era.
In accordance with monetary planners, the Nifty 500 has outperformed the Nifty 50 over the previous three years. The Nifty 500 has delivered returns of 36.98% and 19.12% up to now one and three years, respectively, in comparison with the Nifty 50’s returns of 25.13% and 16.09%.

Nifty 500 - Most Popular Benchmark

<p>Nifty 500 – Most In style Benchmark<br><span class=”redactor-invisible-space”></span></p>

A Motilal Oswal report highlighted that the Nifty 50 has the next sectoral focus, masking solely 10 sectors, whereas the Nifty 500 covers 21 sectors with a extra balanced publicity.
The highest 10 shares within the Nifty 50 account for 56.1% of the portfolio, whereas within the Nifty 500, they account for 33.9%. The Nifty’s protection of India’s listed universe has decreased over the previous decade, masking 51% of India’s market-cap now, in comparison with 59.9% in December 2013.
The Nifty 500 has outperformed the Nifty 50 in 14 out of 24 calendar years since 2000. Though the Nifty 500 could expertise barely bigger declines throughout market crashes, it additionally experiences larger beneficial properties throughout bull markets.
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“Nifty 500 is a passive multi-cap fund, giving publicity to the Indian financial system and is an effective place to begin for first-time traders,” mentioned Nirav Karkera, head of analysis at Fisdom.
He defined that a lot of these funds sometimes exhibit higher efficiency than large-cap shares all through the length of a bull market. Moreover, he famous that they help in minimizing drawdowns compared to methods that solely deal with mid- and small-cap investments throughout bear markets.


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