Lower concentration risk, outperformance during broad rallies

Mirae Asset has launched the Mirae Asset BSE 200 Equal Weight Exchange-Traded Fund (ETF) and Fund of Funds (FoF). The new offers opened for subscription on February 24, 2025, and will close on March 5, 2025.

 

Understanding equal weighted indices

 

An equal-weighted index assigns the same weight to every stock, re­g­ardless of market capitalisation. “In a BSE 200 Equal Weight index, all stocks receive 0.5 per cent weight at the time of rebalancing,” says Siddharth Srivastava, head–ETF product and fund manager, Mirae Asset Investment Managers (India).

 

A market cap-weighted index like the Nifty 50 allocates weights based on free-float market