Nippon India Mutual Fund has recently come up with new open-ended equity scheme named Nifty 500 Equal Weight Index Fund which will index Nifty 500 Equal Weight Index
The Nifty 500 Equal Weight Index is a stock market index majoring the top 500 company in NSE, that offers a variety of sectors and different market capitalization. While ordinary indices are based on the market capitalization basis where the weightage is attributed to the market value of the company’s stock, the equal weight index accords equal weightage to every stock of the index companies. It gives less focus to the big stocks which are usually dominant in the portfolio making this approach as a more non-concentrated approach.