Flipkart co-founder and former CEO Sachin Bansal’s Navi Mutual Fund has applied for an index fund tracking the Nifty Total Market Index. The index was created on 13 October by the National Stock Exchange (NSE) and the fund house worked with the NSE on the index creation process.
There are index funds in India covering benchmark indices like Nifty and Sensex, as well as broader indexes like Nifty 500. In 2019, Motilal Oswal Mutual Fund launched an index fund based on Nifty 500. However, the Total Market Index goes a step further. ahead. According to the NSE factsheet for the index, the Nifty Total Market Index will track the performance of 750 stocks covering large, mid, small and microcap segments. All the stocks which are part of Nifty 500 Index and Nifty Microcap 250 Index are part of Nifty Total Market Index. The weighting of stocks in the index is based on their free-float market capitalization.
The NSE factsheet further states that the Nifty Total Market Index has a correlation of 0.98 with the Nifty 50. Nifty Total Market Index has 1 year and 5 year returns of 63.82% and 16.63% compounded annual growth rate respectively.
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