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Nifty 500 Equal Weight Index Funds

Nifty 500 Equal Weight Index Funds provide broad exposure to the 500 largest stocks in India, with each stock assigned an equal weight. This methodology reduces the concentration risk inherent in traditional market cap-weighted indices and provides a greater tilt towards mid-cap stocks and smaller large-caps.

Funds Tracking Nifty 500 Equal Weight Index

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Nippon India Nifty 500 Equal Weight Index Fund Direct - Growth

Nippon India Nifty 500 Equal Weight Index Fund Direct - Growth

9.13

401.77 -0.42% -4.40% 13.32%0.00%0.00%NA0.35%Very High1001,000OtherIndex Fund

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Please Note:

  • 1M, 3M and 1 Yr returns are Absolute. 3 Yr and 5 Yr returns are Annualized.
  • Fund Rating is sourced from Morningstar.
  • "Exp Ratio" is a short-form used for "Expense Ratio" - In simple terms it is a fee charged by the AMC for managing your money.

*The schemes mentioned above are just for research purpose and not recommendations. Please do your own due diligence before investing.

Frequently Asked Questions

Nifty 500 Equal Weight Index Funds are mutual funds tracking an index where all 500 stocks receive equal allocation regardless of market capitalisation, unlike traditional market-cap weighted indices. It provides balanced exposure across large, mid, and small-cap companies, democratising portfolio construction beyond large-cap dominance.
Investors seeking broad market exposure without large-cap concentration should consider these funds. Suitable for those believing smaller companies can outperform large caps, seeking diversified exposure across 500 companies with equal opportunity for each stock's contribution, and comfortable with higher volatility.
Equal weighting reduces concentration risk from a few large-cap stocks dominating returns. Smaller companies get equal portfolio representation, potentially capturing higher growth. Automatic rebalancing creates systematic buy-low-sell-high discipline. Broader diversification across market capitalisations. Reduced dependence on large-cap performance.
Higher volatility than market-cap weighted indices due to increased mid-small cap exposure. Frequent rebalancing to maintain equal weights increases transaction costs and potential tax implications. Underperformance during periods when large-caps outperform. Higher expense ratios due to rebalancing complexity.
Investors seeking broader market participation should consider these funds. Particularly suitable for those believing in India's mid-small cap growth story, having long-term investment horizons, comfortable with higher volatility, and seeking systematic exposure across market capitalisations without fund manager selection bias or large-cap concentration.
You can invest in the Nifty 500 Equal Weight Index Funds through the Dhan platform. Log in to your Dhan account, search for funds tracking the Nifty 500 Equal Weight Index, compare expense ratios and tracking errors across fund houses, review rebalancing methodologies and historical performance, and invest via lump sum or SIPs.

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