INCOME TAX2 Oct 2026
Should you invest in Nifty 50 equal weight index mutual funds now? This 12-month ratio can help you decide | Mint
Nifty 50 equal weight index funds give all 50 stocks a similar weight, so your money isn't dominated by the biggest companies. All these funds are down over the past year. DSP Mutual Fund says market leadership cycles between polarisation and depolarisation. Track the ratio of the Nifty Top 10 Equal Weight Index to the Nifty 50 Equal Weight Index to judge which phase you are in.
Key Statutory Highlights
- Unlike a regular Nifty 50 index fund, an equal weight fund gives all 50 stocks a similar weight, reducing the portfolio's dependence on the largest companies.
- DSP Mutual Fund says the Nifty 50 is market-cap weighted, with the top 10 stocks accounting for around 50–60% of the index.
- DSP suggests buying a Nifty Top 10 Equal Weight fund or ETF during a polarisation phase, and a Nifty 50 Equal Weight fund or ETF during a depolarisation phase.
Actionable Advice for Taxpayers / Founders:Track the ratio of the Nifty Top 10 Equal Weight Index to the Nifty 50 Equal Weight Index to understand the current market phase, then check with your advisor whether an equal weight fund fits your goals. This indicator is a guide, not a guarantee of returns.
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
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