BAJAJ FINSERV ASSET MANAGEMENT LIMITED.
The Nifty 500 LargeMidSmall Equal-Cap Weighted Index tracks companies across large, mid and small cap segments in equal proportion. This approach allows participation across India’s evolving business landscape, while acknowledging that different segments may carry varying levels of risk.
Allocates equally to large, mid and small cap segments at each rebalance.
Built from the Nifty 500 universe, covering approximately 95% of NSE free-float market capitalisation.
Follows a defined, rules-based methodology with periodic review.
Provides exposure across established and emerging companies within a single benchmark.
The Nifty 500 LargeMidSmall Equal-Cap Weighted Index provides exposure across India’s listed companies, spanning large, mid and small caps. Allocating equal weight to each segment at the time of rebalancing, it reduces reliance on only the largest companies and encourages broader market participation. Since company sizes may perform differently across market cycles, this structure allows participation across phases, while recognising that equity investments are subject to market risks and returns may vary over time.
The BSE 500 TRI follows a float-adjusted market capitalisation approach, where larger companies receive higher weight in the index. In comparison, the Nifty 500 LargeMidSmall Equal-Cap Weighted Index TRI maintains equal allocation across large, mid and small cap segments at the time of rebalancing. Both indices are available as Total Returns Indices (TRI), which include reinvested dividends and therefore provide a broader view of returns beyond price movements alone.
The BSE 500 TRI weights companies by float-adjusted market capitalisation, while the equal-cap index maintains balanced exposure across large, mid and small caps.
The BSE 500 TRI may tilt towards larger companies, whereas the equal-cap structure spreads allocation more evenly across segments.
The Nifty LargeMidcap 250 TRI is managed by NSE Indices Limited, whereas the BSE Large and Midcap Index TRI is managed by BSE Ltd.
Megatrend Investing Approach
Focuses on long-term megatrends to build a forward-looking portfolio beyond traditional sectors while helping reduce recency bias.
Benchmark Alignment
The fund is benchmarked against the BSE 500 TRI, a broad-based index representing diversified equity market exposure.
High Active Share
With an Active Share of 66%, the portfolio meaningfully differs from its benchmark, reflecting active stock selection.
Flexible Allocation
As an open-ended flexi cap scheme, the fund invests across large, mid and small cap companies without fixed allocation limits.
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The Nifty 500 LargeMidSmall Equal-Cap Weighted Index (NIFTY500LMSEQL) is derived from the Nifty 500 Index and tracks the performance of 500 companies across large, mid and small capitalisation segments. What makes it different is the way it allocates weight. Instead of allowing larger companies to dominate the index, it assigns equal weight to each market cap segment at the time of rebalancing.
Within each segment, stocks are weighted based on their free-float market capitalisation. The segment weights are aligned equally on a quarterly basis and implemented from the last trading day of March, June, September and December, in line with the prescribed methodology.
The index has a base date of 1 April 2005 and a base value of 1000, and it is calculated on an end-of-day basis. The Total Returns Index, or TRI, version includes both price changes and reinvested dividends, giving a broader view of returns compared to a price-only index.
Like all equity indices, its performance is influenced by market movements and may vary over time.
The index follows a disciplined rebalancing approach to maintain equal exposure across large, mid and small cap segments. While market movements may temporarily change segment weights, the index realigns them on a quarterly basis to restore balance.
It is reviewed semi-annually to reflect changes in the underlying Nifty 500 universe. Any additions or replacements are implemented as per the prescribed schedule. Within each segment, stocks continue to be weighted by free-float market capitalisation.
In simple terms, the index does not remain static. It adjusts periodically to maintain its intended structure while following defined governance standards and calculation norms.
The Nifty 500 LargeMidSmall Equal-Cap Weighted Index selects its companies from the Nifty 500 universe and groups them into large, mid and small cap segments. At each review, the index assigns equal weight to these three segments, while individual stocks within each segment are weighted by free-float market capitalisation. The segment weights are aligned quarterly and the index is reviewed semi-annually as per the prescribed methodology.
The tables below show the latest sector representation and top constituents by weightage as per the March 30, 2026 factsheet:
Sector representation
| Sector | Weight (%) |
| Financial Services | 27.59 |
| Capital Goods | 9.82 |
| Healthcare | 9.6 |
| Automobile and Auto Components | 7.38 |
| Information Technology | 5.76 |
| Oil, Gas & Consumable Fuels | 5.22 |
| Fast Moving Consumer Goods | 4.81 |
| Consumer Services | 4.13 |
| Chemicals | 4 |
| Metals & Mining | 3.5 |
| Consumer Durables | 3.38 |
| Power | 2.88 |
| Telecommunication | 2.79 |
| Construction | 2.5 |
| Services | 2.42 |
| Construction Materials | 1.55 |
| Realty | 1.54 |
| Textiles | 0.51 |
| Media, Entertainment & Publication | 0.42 |
| Diversified | 0.2 |
Top constituents by weightage
| Company Name | Weight (%) |
| HDFC Bank Ltd. | 3.01 |
| Reliance Industries Ltd. | 2.44 |
| ICICI Bank Ltd. | 2.31 |
| Bharti Airtel Ltd. | 1.47 |
| Infosys Ltd. | 1.18 |
| Larsen & Toubro Ltd. | 1.1 |
| State Bank of India | 1.09 |
| BSE Ltd. | 1.05 |
| Axis Bank Ltd. | 0.89 |
| ITC Ltd. | 0.74 |
Source: Nifty 500 LargeMidSmall Equal-Cap Weighted Index Factsheet (March 30, 2026) and NSE Indices Methodology Document (March 2026); data is subject to change as per periodic review.
Both indices represent broad market exposure, but they differ in how companies are weighted and how segment allocation is managed:
| Basis Of Comparison | Nifty 500 LargeMidSmall Equal-Cap Weighted Index | BSE 500 |
| Parent Universe | Derived from the Nifty 500 | 500 companies listed on BSE |
| Weighting Method | Equal allocation to large, mid and small caps; free-float weighting within each segment | Free-float market capitalisation weighted |
| Segment Allocation | Equal segment weight at review | No fixed segment allocation |
| Rebalancing & Review | Quarterly segment alignment; semi-annual review | Semi-annual reconstitution and rebalancing |
| Return Variant | Available as TRI (includes dividends) | Available as TRI (includes dividends) |
Understanding the structure of this index can help you see how it may offer diversified market participation within a single benchmark:
Balanced Exposure Across Company Sizes
The index assigns equal weight to large, mid and small cap segments at rebalancing, helping avoid concentration in only the largest companies.
Broad Market Representation
Since it is derived from the Nifty 500 universe, the index covers a wide range of companies representing a significant portion of NSE free-float market capitalisation.
Transparent Rules-Based Framework
The index follows a defined methodology with scheduled quarterly alignment and semi-annual review under established governance standards.
Segment Rebalancing Discipline
Equal segment weights are realigned periodically, helping maintain the intended allocation across market capitalisation categories over time.
Comprehensive Return Measurement (TRI Variant)
The Total Returns Index version includes both price movements and reinvested dividends, offering a broader representation of returns compared to a price-only index.
Before considering exposure to this index, it is important to understand the inherent risks that come with its structure and equity market participation:
Equity Market Risk
As an equity index, its performance is influenced by overall market movements and may fluctuate based on economic and corporate developments.
Mid And Small Cap Volatility
Equal allocation to mid and small cap segments means the index may experience sharper price movements compared to large-cap-heavy indices.
Market Capitalisation Rebalancing Impact
Periodic realignment of segment weights may lead to changes in allocation during scheduled reviews.
Sector Concentration Risk
Sector weights reflect the composition of the underlying Nifty 500 universe and may shift over time.
Tracking Error
Index funds or ETFs tracking this benchmark may experience tracking error due to expenses, cash holdings or operational factors.
Before considering this index, it helps to reflect on your investment horizon and how comfortable you are with market ups and downs:
You cannot directly invest in the index itself, but you can gain exposure to it through investment products that track or replicate it:
Whichever route you choose, it is important to review the scheme documents carefully and ensure that the investment aligns with your risk appetite and time horizon, as returns are subject to market risks and may vary over time.
The Bajaj Finserv Flexi Cap Fund uses the BSE 500 TRI as its benchmark, which means the index acts as a reference point to evaluate the fund’s performance and overall portfolio positioning. The BSE 500 TRI represents broad market exposure across sectors and market capitalisations, providing a comprehensive comparison framework.
However, the fund does not simply replicate the index. It is actively managed and may differ from the benchmark in terms of stock selection, sector allocation and market capitalisation exposure. With an Active Share of 66%, the portfolio meaningfully varies from the benchmark composition.
For you as an investor, this means you gain access to a professionally managed portfolio that invests across large, mid and small cap companies within the framework of the scheme’s investment objective. For detailed scheme information, click here.
It means the index assigns equal weight to large cap, mid cap and small cap segments at the time of rebalancing rather than weighting companies purely by market capitalisation.
It is constructed using stocks from the Nifty 500 universe that meet the prescribed eligibility criteria, with equal allocation assigned to each market capitalisation segment as per NSE methodology.
Each segment receives equal allocation at the time of periodic rebalancing, while individual stocks within each segment are weighted by free-float market capitalisation.
The index is reconstituted semi-annually, and segment weights are aligned equally on a quarterly basis from the last trading day of March, June, September and December.
Certain asset management companies may offer index funds or ETFs that track this benchmark, subject to regulatory approvals and product availability.
It may be considered by investors seeking diversified equity exposure through a passive structure and who understand the risks associated with equity market volatility.
Risks include overall equity market volatility, potential fluctuations arising from mid cap and small cap exposure, and changes in sector allocation over time.
As per the latest available NSE factsheet dated 17 April 2026, the Price-to-Earnings (PE) ratio is approximately 24.28, and this figure may change over time.
As per the latest available NSE factsheet dated 17 April 2026, the Price-to-Book (PB) ratio is approximately 3.33, and this figure may change over time.
The calculator alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. This tool is created to explain basic financial / investment related concepts to investors. The tool is created for helping the investor take an informed investment decision and is not an investment process in itself. Bajaj Finserv AMC has tied up with AdvisorKhoj for integrating the calculator to the website. Mutual Fund does not provide guaranteed returns. Also, there is no assurance about the accuracy of the calculator. Past performance may or may not be sustained in future, and the same may not provide a basis for comparison with other investments. Investors are advised to seek professional advice from financial, tax and legal advisor before investing in mutual funds.
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Bajaj Finserv Limited, an unregistered Core Investment Company (CIC) under RBI Regulations 2020, is a part of the renowned Bajaj Group.
One of India’s leading and most diversified financial services institutions, Bajaj Finserv Ltd provides simple financial solutions to crores of people every day through its group companies. Through continuous innovation, it strives to enrich the lives of communities across the length and breadth of the country and make financial security accessible to all.
Our Investment Philosophy reflects what we, as an organisation, believe will generate a good return on equity investment for our investors in the long term. It dictates our goals and guides decision making.
Alpha (a) is a term used in investing to describe an investment strategy’s ability to beat the market.
Alpha is thus also often referred to as excess return or the abnormal rate of return in relation to a benchmark, when adjusted for risk. Essentially, it means doing better than the crowd without taking disproportionate risk.
Collecting superior information
Analysts and portfolio managers strive to collect superior information about the business and the management of the company. They try to generate superior earnings forecast and the balance strength of the company and the industry, thereby trying to 'beat the market' on information edge. This is an important source of alpha for an investor. However, over the years, retaining the information edge has become more difficult and expensive. With a whole lot of investors trying to collect superior information, how can an investor be sure to continuously have accurate and material information about the companies, ahead of others, all the time?
Processing information better
Even if you don't have material information earlier than the crowd, you can still generate better outcomes if you are able to process this information better. Investors develop models and algorithms with enhanced predictive powers to forecast the next move. Fund managers who invest based on some pure formal analytical models are quantitative managers. Here, the goal is to try and beat other investors based on the sophistication of procedures or analytics. The analytical edge can be quite useful until it gets copied by many, and then it may stop generating superior returns.
Exploiting behavioural biases
As the name suggests, this edge is achieved by superior behaviour in reacting to the inputs available to maximise alpha. Modern finance assumes people behave with extreme rationality. However, researchers in behavioural finance have shown that this is not true. Moreover, these deviations from rationality are often systematic. Behavioural managers try to exploit situations where securities are mispriced by the market because of behavioural factors. At Bajaj Finserv AMC, we endeavour to combine the best of these edges.
