Axis Mutual fund files to launch a Nifty 100 index fund

Axis mutual fund has filed to launch a Nifty 100 index fund. This will be the first index fund based on the index. There are 3 ETFs by Reliance, LIC, and ICICI but like most of the ETFs in India, they are illiquid. DSP and Principal, however, offer Nifty 100 equal weight funds.

The Nifty 100 index consists of the top 100 stocks by free-float market cap. This index is essentially a combination of Nifty 50 and Nifty Next 50.

Here’s a 10-year chart (price line chart) of how Nifty 100 has fared against, Nifty 50, next 50, nifty 500, Nifty mid and small-cap indices.

Here’s how Nifty 100 and Nifty 100 Equal-weight stack-up. There wasn’t much data available. This chart is from August 2018.

Pretty decent i’d say. In recent years, the combination of Nifty 50+Nifty Next 50 index funds have become quite popular among investors. This fund saves you the trouble of investing in 2 funds separately.

It’s always better to let the fund buildup a track record and see how it manages to track the index before investing. Just add it to your watchlist. You can check out more about the index, construction methodology, and the constituents here.

But good to see more AMCs lining up passive products. Just a couple of months ago DSP launched Nifty 50 and Nifty 50 index funds.

In September 2018, Motilal MF has filed to launch a Nifty 250 index fund, but there has been no news on that.

Posted by Passivefool

A passive investor at present who was actively scammed once. Seduced by the humble beta, preaching to the choir now.

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