Nippon India Nifty 500 Equal Weight Index Fund Review

Last Updated on September 3, 2024 at 8:31 amNippon India Nifty 500 Equal Weight Index Fund is an open-ended scheme tracking the Nifty 500 Equal Weight Index. The fund is currently in its NFO period. We analyse the performance of the underlying index and discuss if it makes sense to consider this fund for investment.According to the AMC’s scheme presentation, “Large caps (Nifty 100) have a major influence at ~73% weight in the Nifty 500 Index, while Small caps (Nifty Smallcap250) represents a mere ~10% weight. While Large caps (Nifty 100) represent ~20% and Small caps represent ~50% weight in the Nifty 500 Equal Weight Index.” That should give you an idea of what to expect from the fund!Nifty 500 Equal Weight Index vs Nifty 50Nifty 500 Equal Weight Index vs Nifty 50 from April 2005 to August 2024The Nifty 500 Equal Weight Index underperforms Nifty 50 frequentlyNifty 500 Equal Weight Index vs Nifty Next 50Nifty 500 Equal Weight Index vs Nifty Next 50 from April 2005 to August 2024The Nifty 500 Equal Weight Index has consistently underperformed the Nifty Next 50. This is enough to appreciate that there is nothing special about Nippon India Nifty 500 Equal Weight Index Fund, and one can give it a miss. Five-year rolling returns5-year rolling returns of Nifty 500 Equal Weight Index vs Nifty Next 50 vs Nifty 50 from April 2005 to August 2024 are shown below. The underperformance in actual index funds is expected to be lower, considering higher tracking errors and possibly higher fees.5-year rolling returns of Nifty 500 Equal Weight Index vs Nifty Next 50 vs Nifty 50 from April 2005 to August 2024Ten-year rolling returnsThe 10-year rolling returns of Nifty 500, the Equal Weight Index vs Nifty Next 50, and Nifty 50 from April 2005 to August 2024 are shown below. The equity weight index periodically underperforms the Nifty 50 and rarely outperforms the Nifty Next 50.10-year rolling returns of Nifty 500 Equal Weight Index vs Nifty Next 50 vs Nifty 50 from April 2005 to August 2024According to fund house (source scheme presentation linked above), “Diversification:Enhances the overall performance of a portfolio by giving equal importance to each constituent, promoting diversification and reducing concentration risk” is a specific reason for choosing Nippon India Nifty 500 Equal Weight Index Fund.However, the above charts paint a different picture. This equal-weight index is too small and mid cap-heavy for its good. While we have consistently advocated against small cap funds, those who love small cap stocks are relatively better off with exposure to an active small cap fund than this fund. In summary, we find no compelling reason to invest in Nippon India Nifty 500 Equal Weight Index Fund.Do share this article with your friends using the buttons below. 🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users! Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 1,000 investors and advisors use this! New Tool! => Track your mutual funds and stock investments with this Google Sheet! We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.Follow Freefincal on Google NewsSubscribe to the freefincal Youtube Channel.Follow freefincal on WhatsApp Podcast: Let’s Get RICH With PATTU! Every single Indian CAN grow their wealth! Listen to the Let’s Get Rich with Pattu Podcast You can watch podcast episodes on the OfSpin Media Friends YouTube Channel.Let’s Get RICH With PATTU podcast on YouTube. 🔥Now Watch Let’s Get Rich With Pattu தமிழில் (in Tamil)! 🔥Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincalHave a question? Subscribe to our newsletter using the form below.Hit ‘reply’ to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question. Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!About The Author Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice. Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence. Our new course!  Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!    Our new book for kids: “Chinchu Gets a Superpower!” is now available!Both the boy and girl-version covers of “Chinchu Gets a superpower”. Most investor problems can be traced to a lack of informed decision-making. We made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So, in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it, as well as teaching him several key ideas of decision-making and money management, is the narrative. What readers say!Feedback from a young reader after reading Chinchu gets a Superpower!Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. – Arun. Buy the book: Chinchu gets a superpower for your child! How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only! Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool! We publish monthly mutual fund screeners and momentum, low-volatility stock screeners. About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters at freefincal dot com (sponsored posts or paid collaborations will not be entertained) Connect with us on social media Our publicationsYou Can Be Rich Too with Goal-Based Investing Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)