Betting on the Right Index Funds

The Equal Weight Index diverges from conventional indices by assigning equal weight to each constituent, in contrast to the market capitalization weight assigned in typical indices. This article explores the distinctions between the two approaches and evaluates whether opting for an equal-weighted index makes sense compared to a market-cap-weighted one. 

If we were to prompt you to guess the bestperforming Large-Cap fund in the past year, chances are that most of you might not correctly identify the top performer. Surprisingly, the leading funds in the large-cap fund category over the last year were all equal weight index funds. The HDFC Nifty 100 Equal Weight Index Fund-Direct Plan emerged as the top performer, delivering a remarkable 37.57 per cent return. Following closely was the Sundaram Nifty 100 Equal Weight Fund-Direct Plan, which achieved a return of 33.54 per cent during the same period.