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Updated March 12th, 2024 at 13:55 IST

Nifty 500 beats leading global indices in peer comparison: Report

The Nifty 500 has delivered a robust total return of 16%, solidifying its position as one of the top-performing indexes worldwide.

Reported by: Business Desk
NSE
The Nifty 500 has exhibited a propensity to outperform the Nifty 50 during bullish market phases. | Image:NSE
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Nifty 500 beats global indices: In a study conducted by Motilal Oswal Asset Management Company (Motilal Oswal AMC), the Nifty 500 index, has showcased remarkable performance, outpacing several key global indices over the past decade.

According to the findings, the Nifty 500 has delivered a robust total return of 16 per cent, solidifying its position as one of the top-performing indexes worldwide.

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The study, led by Pratik Oswal, Head of Passive Funds at Motilal Oswal Asset Management Company Ltd, highlights the Nifty 500's stellar performance vis-à-vis leading global benchmarks. Notably, the Nifty 500's 16 per cent return over the past ten years places it second only to the Nasdaq 100, which recorded a formidable 21.5 per cent total return by December 31, 2023. Meanwhile, other prominent indices such as the S&P 500, MSCI Emerging Markets, and MSCI EAFE (Developed Markets ex-US) exhibited growth rates of 15.4 per cent, 6.1 per cent, and 7.9 per cent, respectively, during the same period.

Oswal underlined India's ascent in the global economy, climbing from the 10th to the 5th position over the past decade. He further projected a continued rise in rankings by 2030, presenting an enticing opportunity for investors to capitalise on India's robust growth narrative.

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Investors eyeing exposure to Indian equities may find value in considering investment in a comprehensive passive fund, particularly the Nifty 500 Index. This index offers extensive coverage of Indian equities, encompassing over 90 per cent of market capitalisation across large-, mid-, and small-cap segments.

The Nifty 500 has exhibited a propensity to outperform the Nifty 50 during bullish market phases, while demonstrating resilience against downturns, especially compared to mid and small-caps.

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The study also sheds light on sectoral performance trends over the past decade. Energy, IT, and Financial Services emerged as the top-performing sectors, with Energy leading the charts with a growth rate of 17.8 per cent, followed by Financial Services at 17.2 per cent and IT at 16.3 per cent.

Interestingly, during the period of 2003-2013, FMCG, Auto, and Financial Services dominated the sectoral landscape, driven by a recovery from the global financial crises of 2008-2013.

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Oswal highlighted the commendable track record of the Motilal Oswal Nifty 500 Index Fund, boasting a total Assets Under Management (AUM) of Rs 674.61 crore as of January 31, 2024. The fund's exceptionally low tracking error of 0.04 per cent (4 basis points) stresses upon its commitment to closely aligning with the performance of the Nifty 500 Index.
 

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Published March 12th, 2024 at 13:55 IST

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