Published: 23rd July 2024
By: Value Research
In the last six months, the Nifty 100 Equal Weight Index has delivered stellar returns, earning 21.3% against the Nifty 100’s 14.7% in the same period (as of June 30, 2024).
Similar to the Nifty 100 Index, the Nifty 100 Equal Weight Index invests in the top 100 large-cap stocks. Each underlying stock is allocated a fixed equal weight of 1% while rebalancing.
Stocks comprising 52% of the index’s total weight delivered more than 20% returns in the last six months. By contrast, only 41% of the stocks in the Nifty 100 did the same.
How has the equal weight (EW) index fared against the Nifty 100 in the past?
The EW index has outperformed the Nifty 100 across both five and 10-year periods. However, during periods of economic downturns, its returns were lower than that of the Nifty 100, albeit by a small margin.
Note: GFC covers the period from December 31, 2007 to March 31, 2009. The Covid pandemic covers the period from December 31, 2019 to March 31, 2020. Average returns are based on daily five-year and 10-year daily returns between 2004 and 2024.
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