NSE Indices launches Nifty Top 20 Equal Weight Index

NSE Indices, the index services subsidiary of the National Stock Exchange (NSE), has launched a new benchmark index: the Nifty Top 20 Equal Weight.

The Nifty Top 20 Equal Weight tracks the performance of the top 20 companies selected based on their free-float market capitalization from the Nifty 50 index. Unlike traditional market capitalization-weighted indices, this new index assigns equal weight to each of the 20 constituent stocks.

With a base date of March 2, 2006, and a base value of 1000, the Nifty Top 20 Equal Weight has demonstrated a strong performance. Over the past five years, the index has delivered a total return of 20.69% CAGR. In the last year alone, it has risen by 32.77%. The index is reconstituted on a semi-annual basis and weights are rebalanced on a quarterly basis.

 

The Nifty Top 20 Equal Weight is expected to serve as a valuable benchmark for asset managers and a reference index for passive investment products such as Exchange Traded Funds (ETFs), index funds, and structured products.

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