Nifty 50 vs Nifty 500: Where should you invest?

One of our readers wanted to know whether it's better to invest in an index fund that tracks the Nifty 50 or the Nifty 500. But before we provide our opinion, let's quickly understand the key differences between the two indices. Nifty 50 Nifty 500 They are home to... 50 most valued companies  500 most valued companies Where they invest 50 large-cap companies 100 large-caps + 150 mid caps + 250 small caps Importance of top 10 companies 55.87 per cent weightage 32.51 per cent weightage Why? Top 10 has more weightage as there are just 50 companies Has lower weightage as it is home to 500 companies Name of the top 10 companies HDFC Bank, Reliance, ICICI Bank, Infosys, ITC,TCS, L&T, Bharti Airtel, Axis Bank, SBI Same 

This article was originally published on September 19, 2024.