Equal-Weight Nifty Fund: Is Your SIP Missing 45 Stocks?

Axis MF has launched a new index fund where all 50 Nifty stocks get equal weight (~2% each), unlike regular Nifty funds where top companies like Reliance and HDFC Bank dominate. NFO runs July 3–17.

Here's what happened: Axis Mutual Fund launched the Nifty 50 Equal Weight Index Fund, giving each of the 50 Nifty stocks roughly 2% allocation regardless of company size.. Traditional Nifty index funds are market-cap weighted — meaning giants like Reliance, HDFC Bank, and Infosys can together hold 35–40% of your investment.. The NFO (New Fund Offer) is open July 3–17, 2025, after which it will be available as a regular open-ended index fund with SIP options..

What you should do: Compare: before investing, check your existing Nifty index fund's top-10 holdings — if 5 stocks hold more than 35%, you're already heavily concentrated.. Diversify with purpose: consider allocating a smaller portion (10–20% of equity SIP) to equal-weight if you want broader market exposure, not as a full replacement.. Check expense ratio carefully during and after NFO — equal-weight funds rebalance quarterly, which can mean slightly higher costs than plain Nifty index funds..

Equal-weight funds historically outperform cap-weight during mid-cycle rallies when smaller Nifty stocks run faster than the megacaps — but they underperform in defensive, flight-to-safety markets when investors pile into large blue chips.