INCOME TAX15 Sept 2026
Should you add equal-weight funds to your portfolio? | Mint
Equal-weight index funds have beaten their market-cap-weighted parents recently, even as the Nifty 50 fell about 5% over 12 months. These funds give every stock the same weight, so you get more mid- and small-cap exposure and different sector bets. Over seven-year periods they returned roughly 12-14% a year. If you are tempted, check the extra risk first and keep it a small part of your portfolio.
Key Statutory Highlights
- Funds tracking the Nifty 500 Equal Weight index returned about 15% over six months as of 9 September 2026, while Nifty 50 Equal Weight funds rose about 2.7%.
- Investor assets in equal-weight index funds and ETFs grew from roughly ₹140 crore at the end of 2020 to over ₹10,500 crore by December 2025.
- Over rolling seven-year periods, these equal-weight indices delivered average annualised returns of roughly 12-14%, and none posted a negative return in any seven-year window.
Actionable Advice for Taxpayers / Founders:If you are considering equal-weight funds, first look at the higher mid- and small-cap exposure and sector shifts they bring, and treat them as a small, optional addition rather than a full replacement for your core index holdings.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: