This large-cap index has beaten Nifty 50 by 5.9%. Smart buy?

Summary: This analysis dives into what’s driving the Nifty 50 Equal Weight Index’s recent outperformance, how it has held up across market cycles, and what that means for investors considering this index. Over the last few months, multiple reports from top brokerages and global research houses have started singing from the same hymn sheet: large caps are back in favour. Naturally, retail investors are paying attention. too. But if you’re looking at large caps, there’s one index that’s quietly been doing even better than the Nifty 50, the Nifty 50 Equal Weight (EW) Index. And not just by a small margin. In the past five years, here’s how they stack up: Nifty 50 TRI: 18.4 per cent Nifty 50 Equal Weight TRI: 24.3 per cent That’s a handsome 5.9 per cent annualised edge in favour of the equal-weight index. But before you rush to move your money, let’s unpack what this index really is and whether it deserves a place in your portfolio. What exactly is the Nifty 50 Equal Weight Index? Think of the Nifty 50 TRI is home to the 50 largest listed companies in the country. It’s a market-cap weighted index, meaning the larger the company, the higher the representation the company has in the index. Simply put, companies like Reliance Industries, HDFC Bank and Infosys have a much bigger say in performance than smaller constituents like Divi’s Labs or Wipro. The Nifty 50 Equal Weight Index, on the other hand, treats everyone

This article was originally published on October 28, 2025.