Funds at a glance

Nifty Top 10 Equal Weight Index: the top 10 reasons to invest

In the Indian equities market, the 100 biggest stocks by market cap are considered to be large-caps. Now, you might wonder: would the benefits of large-caps get amplified if you distilled them to create an index comprising only the 10 biggest stocks? There’s a good chance that the answer is ‘yes’. In this post, we’ll present ten reasons why a fund tracking such an index, namely the Nifty Top 10 Equal Weight Index (henceforth, ‘the Nifty 10 index’), might be a good pick for investors. A quick aside: the Nifty 10 index is 'equal-weighted', which means that every constituent stock's performance has an equal impact on the index value. This is in contrast to a market-cap-weighted index, where a constituent stock with a bigger market cap can move the index more easily compared to a constituent stock with a smaller market cap.

Is the sleeping giant stirring?

We recently discussed why investors should keep an eye out for the very largest companies in India. In this post, we’ll look at some technical reasons why the overall large-cap space might potentially see an uptick in the near future. Take a look at the graph below, which plots the price ratios of the BSE SmallCap and BSE MidCap indices against the Sensex, which is a large-cap index.

Letter to a young investor #2 - The money manual

Retail investors who’re not interested in new-fangled or high-capital investment avenues typically have four main asset classes available Dear Young Investor, I hope this letter finds you well and in high spirits. You remember my uncle whom I had introduced in my previous letter, who taught me that wealth is not about accumulating money but about living a life of purpose, freedom, contentment, and fulfilment?to them: debt instruments (such as bonds), gold, international equities, and domestic equities.