ICICI Pru Nifty Top 15 Equal Weight Index Fund NFO review

ICICI Prudential Mutual Fund has launched another index fund — the ICICI Prudential Nifty Top 15 Equal Weight Index Fund, India’s first passive offering that will track the Nifty Top 15 Equal Weight Total Returns Index (TRI). The fund opened for subscription on June 10, 2025, and will close on June 24, 2025.

Alongside the index fund, the AMC has also introduced an ETF (exchange-traded fund) available for subscription during the same window.

About the index

The Nifty Top 15 Equal Weight TRI aims to track the performance of the top 15 stocks selected from the Nifty 50, based on average free-float market capitalisation. Each stock has an equal weight of nearly 6.7 per cent in the index, which will be rebalanced semi-annually.

Sectoral allocation

Unlike the Nifty 50, which covers around 15 sectors, the Nifty Top 15 Equal Weight TRI is dominated by only seven sectors, indicating that it is concentrated (reliant on the performance of a handful of sectors).

Below is a breakdown of its sectoral allocation (as of May 30, 2025).

• Financial Services: 40.1 per cent
• Automobiles: 13.7 per cent
• FMCG: 13.2 per cent
• Information Technology: 12.3 per cent
• Oil & Gas: 7.1 per cent
• Telecom: 6.9 per cent
• Construction: 6.8 per cent

Some of the key constituents of the Nifty Top 15 Equal Weight TRI include Reliance Industries, Mahindra and Mahindra, ICICI Bank, Bharti Airtel and HDFC Bank.

How has the index fared versus the broader market?

When we look at its long-term performance, the Nifty Top 15 Equal Weight TRI has outpaced the Sensex and Nifty 50 nearly 67 per cent and 69 per cent of the time, respectively.

However, as seen from the above graph, the margin of outperformance has been relatively slim for the most part. Moreover, post 2020, the Nifty Top 15 Equal Weight TRI has managed to stay ahead of the Nifty 50 only 39.4 per cent of the time, during a period when returns from large-cap stocks have been increasingly polarised, led by a handful of heavyweights.

Performance during downturns

During bearish phases, the Nifty Top 15 Equal Weight TRI’s performance has proven to be a mixed bag.

As seen from the table below, the index fell less compared to the Sensex and Nifty 50 after the Global Financial Crisis and RBI rate hikes in 2022. However, during events like Brexit and the Covid-19 pandemic, the index fell harder than the broader market.

The takeaway? Steeper falls indicate that having equal weight doesn’t guarantee downside protection, especially when market leadership is narrow and unevenly distributed.

So, should you invest?

The ICICI Prudential Nifty Top 15 Equal Weight Index Fund may be the first of its kind, but it isn’t a must have for most investors. Further, a high concentration of stocks only adds to the volatility without enhancing returns.

Thus, if you already have large-cap exposure through the Nifty 50 or Sensex, this fund will only duplicate your holdings. And if you are seeking superior, inflation-beating returns, a diversified equity fund (flexi- or multi-cap funds, for example) may be more suitable.

Also read: Ask these three questions before investing in an NFO