India’s first Total Market Index Fund


Sachin Bansal’s Navi Mutual Fund has filed for an index fund tracking the Nifty Total Market Index. The index was created on 13 October by the National Stock Exchange and the fund house worked with NSE on the index creation process.

India has index funds covering benchmark indices such as the Nifty and Sensex, as well as broader indices such as the Nifty 500. In 2019, Motilal Oswal Mutual Fund launched an index fund based on the Nifty 500. However the Total Market Index goes one step further. 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 stocks that are part of Nifty 500 index and Nifty Microcap 250 index form part of the Nifty Total Market index. The weight of the stocks in the index is based on their free-float market capitalization.

NSE factsheets further show that the Nifty Total Market Index has a correlation of 0.98 with the Nifty 50. The Nifty Total Market Index has 1 year and 5 year returns of 63.82% and 16.63% compound annual growth rate respectively.


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