India’s premier index, the NIFTY 50 over years has successfully become the ‘stock of the nation’ helping investors gauge the pulse of Indian capital market. It has lived up to its core purpose of providing a fair representation of the Indian equity market focusing on portfolio diversification, liquidity and replicability.
The NIFTY 50, tracking 50 blue chip companies across 13 sectors, represents ~67% of the total free float market capitalization and ~53% of total liquidity of all listed equity companies on NSE as on March 29, 2019.
It serves the purpose of providing a fair representation of the Indian equity market focusing on portfolio diversification, liquidity and replicability. The simple rules-based portfolio review strategy of the index has outperformed a ‘buy and hold’ strategy over the last 10 years by delivering total returns of 15.98% per annum . On a rolling return basis, NIFTY 50 has given returns of more than 15% per annum 60% of the times for 10 year investment horizon. ~68% of the active funds which use NIFTY 50 as their benchmark have not been able to beat the index over the last 10 years. Currently, NIFTY 50 has 21 ETFs of which 16 are listed in India and 5 in international markets. India’s premier index, the NIFTY 50 over years has successfully become the ‘stock of the nation’ helping investors gauge the pulse of Indian capital market.
For additional insights, please refer to the attached whitepaper.
