HDFC NIFTY50 EQUAL WEIGHT INDEX FUND NFO

 

What is NIFTY50 Equal Weight Index?

The NIFTY50 Equal Weight Index represents an alternative weighting index strategy to its market capitalization weighted parent index, the NIFTY50. The index includes the same companies as its parent, however, weighted equally.

The NIFTY50 Equal Weight Index aims to measure the performance of constituents forming part of the parent index, the NIFTY50 Index, where each company in the index shall be assigned equal weights at the time of review.

NIFTY50 Vs NIFTY50 Equal Weight

Top 5 Stocks

Stock Name	Weightage%
	NIFTY50	NIFTY50 EW
Reliance Industries Ltd.	10	2
HDFC Bank Ltd.	9.6	2
Infosys Ltd	8.6	2
HDFC Ltd.	6.5	2
ICICI Bank Ltd	6.4	2
Total	41.2	10

 

Bottom 5 Stocks

Stock Name	Weightage%
	NIFTY50	NIFTY50 EW
Hero Motocorp	0.6	2
eicher motor	0.5	2
Shree Cement	0.5	1.9
Coal India	0.5	2
Indian Oil Corporation	0.4	2
Total	2.5	9.9

NIFTY50 Equal Weight Represents an alternative weighting strategy. The index includes the same companies as its parent NIFTY50 index, however, weighted equally.

NIFTY50 Equal Weight Index offers disciplined investment approach with no bias where each stock contributes equally for the overall index growth

 

Sectoral Diversification: NIFTY50 Vs NIFTY50 Equal Weight

Row Labels	NIFTY50 Equal Weight TRI	NIFTY50 TRI
Financial Services	21.8	37.2
Consumer Goods	14.1	11.1
Automobile	11.9	5.3
IT	10.1	17.4
Pharma	8.2	3.6
Metals	8	3.6
Oil & Gas	8	11.7
Cement	5.9	2.5
Power	4.1	1.7
Services	2	0.8
Fertilizers and pest	2	0.6
Construction	2	0.7
Telecom	2	1.8

Why NIFTY50 Equal Weight Index?

The index offers exposure to Top 50 large companies on the NSE with equal weight ( ~ 2% to each stock ) The index being equal weight, aims to reduce the stock/ sector concentration risk With equal allocation to the 50 large cap companies, index aims to benefit from the growth opportunities across stocks/ sectors, rather than just relying on the performance of few heavy weight stock/ sectors The index is automatically rebalanced every quarter and reconstituted semi-annually in line with NIFTY50 Index The index represents smart and intelligent investing through “Auto Quarterly Rebalancing” and thus enabling “Auto Profit Booking”