Fund Radar: Can Nifty 100 Equal Weight earn you more than Nifty 100?

The Nifty 100 Equal Weight Index has had a strong run in the last six months, delivering returns of 27.5 per cent compared to the Nifty 100's 19 per cent as of July 31, 2024. But before we understand the equal weight (EW) index's reason for outperformance, let's know what it is. Like the Nifty 100 index, the Nifty 100 Equal Weight index is home to the top 100 large-cap companies. But instead of assigning weights to each company depending on their market value, the EW index assigns equal weight. This means each company has a 1 per cent weight in the index. To maintain t