BAJAJ FINSERV ASSET MANAGEMENT LIMITED.
The Nifty 500 Multicap 50:25:25 Index follows a structured allocation of 50% large cap, 25% mid cap and 25% small cap stocks at rebalance dates. This approach is designed to maintain exposure across market segments, providing exposure across different market segments, while recognising that returns and volatility may vary over time.
Maintains fixed 50:25:25 allocation across market capitalisation segments.
Includes all 500 companies from the Nifty universe.
Quarterly rebalancing restores defined multi-cap allocation structure.
Spread across multiple sectors, reducing dependence on the performance of a single industry.
The Nifty 500 Multicap 50:25:25 Index measures the performance of companies drawn from the Nifty 500 universe while maintaining fixed allocations across large, mid and small cap segments. Unlike broad market indices where weights shift entirely with market capitalisation, this index resets its 50:25:25 structure at rebalance dates, creating a rules-based multi-cap framework that reflects both market capitalisation and sector spread across the Indian equity market.
Both indices draw from the same 500-company universe, but they differ in how weights are assigned across market capitalisation segments. While the Nifty 500 reflects market-cap movements freely, the Nifty 500 Multicap 50:25:25 Index maintains a predefined allocation structure at rebalance dates. Understanding this distinction can provide clarity on how each index behaves over time.
The 50:25:25 index fixes segment weights, while Nifty 500 weights shift with free-float market capitalisation movements.
The 50:25:25 index resets allocation quarterly, whereas Nifty 500 rebalances semi-annually without fixed segment targets.
The 50:25:25 index preserves defined mid and small cap exposure, unlike Nifty 500 where exposure varies with market trends.
Multi Cap Mandate
Invests across large, mid and small cap stocks in line with SEBI’s prescribed multi-cap allocation framework.
Benchmark Alignment
Uses the Nifty 500 Multicap 50:25:25 Index as a reference point for evaluating performance within a structured allocation approach.
Active Research
Builds the portfolio through internal research and valuation discipline rather than replicating index weights.
Contrarian Focus
Seeks companies that appear undervalued relative to fundamentals and may offer long-term growth potential as market sentiment evolves.
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The Nifty 500 Multicap 50:25:25 Index measures the performance of companies from the Nifty 500 universe while maintaining a defined allocation across market capitalisation segments. It assigns 50% weight to large cap stocks and 25% each to mid and small cap stocks at rebalance dates.
Unlike broader indices where segment weights change fully with market movements, this index restores its allocation periodically. Within each segment, stocks are weighted using free-float market capitalisation, meaning companies with higher publicly available shares receive higher weights.
The index has a base date of 1 April 2005 and a base value of 1000. It is calculated in real time and reviewed periodically as per NSE Indices’ framework.
The Nifty 500 Multicap 50:25:25 Index includes all stocks from the Nifty 500 and classifies them into large, mid and small cap segments based on NSE’s framework. At each quarterly rebalance, it assigns 50% weight to large caps and 25% each to mid and small caps.
Within each segment, stocks are weighted using free-float market capitalisation, so companies with higher publicly available market value receive higher weights. Segment weights may shift due to price changes but are reset at the next rebalance.
The index is reconstituted semi-annually and calculated in real time, reflecting ongoing market movements.
The Nifty 500 Multicap 50:25:25 Index follows a structured and rules-based approach for selecting and classifying companies. It does not independently pick stocks, but instead draws all its constituents from the Nifty 500 universe and then assigns them across market capitalisation segments. The index is reviewed periodically as per NSE’s framework to ensure it continues to reflect the defined structure.
Here is how the index is currently distributed across sectors and leading companies, based on the March 30, 2026 factsheet:
Sector representation
| Sector | Weight (%) |
| Financial Services | 28.94 |
| Healthcare | 8.46 |
| Capital Goods | 8.37 |
| Automobile and Auto Components | 7.25 |
| Oil, Gas & Consumable Fuels | 6.47 |
| Information Technology | 6.34 |
| Fast Moving Consumer Goods | 5.22 |
| Metals & Mining | 3.86 |
| Consumer Services | 3.8 |
| Telecommunication | 3.2 |
| Power | 3.16 |
| Chemicals | 3.14 |
| Consumer Durables | 3.06 |
| Construction | 2.71 |
| Services | 2.19 |
| Construction Materials | 1.73 |
| Realty | 1.26 |
| Textiles | 0.38 |
| Media, Entertainment & Publication | 0.31 |
| Diversified | 0.15 |
Top constituents by weightage
| Company Name | Weight (%) |
| HDFC Bank Ltd. | 4.51 |
| Reliance Industries Ltd. | 3.66 |
| ICICI Bank Ltd. | 3.47 |
| Bharti Airtel Ltd. | 2.2 |
| Infosys Ltd. | 1.77 |
| Larsen & Toubro Ltd. | 1.66 |
| State Bank of India | 1.64 |
| Axis Bank Ltd. | 1.34 |
| ITC Ltd. | 1.12 |
| Mahindra & Mahindra Ltd. | 1.06 |
Source: Nifty 500 Multicap 50:25:25 Index Factsheet (March 30, 2026) and NSE Indices Methodology Document; data is subject to change as per periodic review.
Both indices include the same 500 companies but differ in how they allocate weights across market segments. Here is a structured comparison to help you understand these differences clearly:
| Basis Of Comparison | Nifty 500 Multicap 50:25:25 Index | Nifty 500 Index |
| Universe Base | Includes all companies from the Nifty 500 universe | Includes 500 companies selected as per NSE eligibility criteria |
| Market-Cap Allocation | Fixed allocation of 50% large cap, 25% mid cap and 25% small cap at rebalance | No fixed allocation; weights depend on free-float market capitalisation |
| Weighting Method | Free-float market capitalisation within each segment | Free-float market capitalisation across entire index |
| Segment Behaviour | Segment weights are reset periodically to maintain defined allocation | Segment weights change continuously based on market movements |
| Rebalancing Frequency | Weights rebalanced quarterly and index reconstituted semi-annually | Rebalanced and reconstituted semi-annually |
| Market Representation | Structured multi-cap exposure with defined segment participation | Broad market representation reflecting overall market capitalisation trends |
| Use Case | Used where a predefined multi-cap allocation framework is followed | Used to represent overall market performance without segment constraints |
Understanding how this index is structured can help you evaluate how it maintains balanced multi-cap exposure over time:
Defined allocation framework
Maintains a fixed 50:25:25 allocation across large, mid and small cap segments at rebalance dates.
Broad market universe
Includes all companies from the Nifty 500, covering multiple sectors and industries.
Free-float weighting
Weights stocks within each segment based on publicly available market capitalisation.
Periodic rebalancing
Resets segment allocation quarterly to maintain the defined structure despite market movements.
Transparent methodology
Follows a rules-based framework defined and maintained by NSE Indices.
Real-time market tracking
Reflects ongoing market price movements as it is calculated in real time.
Understanding these risks can provide perspective on how the index may behave across different market conditions:
Equity market risk
As an equity index, its performance is influenced by overall market movements, economic conditions and changes in corporate earnings.
Mid and small cap volatility
With 50% exposure to mid and small cap stocks, price movements may be sharper during certain market phases.
Rebalancing impact
Quarterly rebalancing may lead to changes in segment weights, which can influence return patterns over shorter periods.
Segment allocation risk
Fixed allocation may limit flexibility to adjust exposure based on changing market conditions.
Tracking difference
Investment products tracking the index may experience minor differences due to expenses, cash holdings or execution factors.
Sector variation risk
Sector weights may shift over time due to price movements and periodic index reviews.
If you are evaluating this index, it helps to consider your investment horizon and comfort with different market segments:
You cannot invest directly in the Nifty 500 Multicap 50:25:25 Index, but you can access it through investment products designed to track its performance:
Before investing, it is important to read scheme-related documents carefully and ensure the investment aligns with your overall asset allocation, keeping in mind that returns are subject to market risks and may vary over time.
The Nifty 500 Multicap 50:25:25 TRI serves as the benchmark for Bajaj Finserv Multi Cap Fund and acts as a reference point for evaluating how the portfolio performs over time. Since the TRI version includes reinvested dividends along with price movements, it reflects total return performance of the broader multi-cap market.
That said, the fund is not designed to replicate the benchmark. It follows an active investment approach and builds its portfolio through independent stock selection within the multi-cap universe, which may result in differences in holdings, sector allocation and weight distribution compared to the index.
In essence, while the benchmark provides a structured framework for performance comparison, portfolio construction is guided by the scheme’s investment objective and research-led approach. For detailed scheme information, click here.
It refers to the index’s target allocation of 50% in large cap stocks and 25% each in mid and small cap stocks, which is restored at every quarterly rebalance.
The index includes all Nifty 500 companies, classifies them into large, mid and small cap segments, and assigns fixed weights of 50%, 25% and 25% at rebalance dates using free-float market capitalisation within each segment.
All companies that are part of the Nifty 500 Index are included, and the list is reviewed periodically as per NSE Indices’ reconstitution framework.
The index is rebalanced quarterly to restore segment allocation, while its constituents are reviewed and updated semi-annually.
Yes, index funds and ETFs may track this index, allowing investors to access its structure, subject to product availability and tracking differences.
The index is typically associated with long-term horizons because it includes equity exposure across market caps, where returns and volatility may vary over time.
Key risks include equity market volatility, sharper price movements from mid and small cap exposure, and tracking differences when accessed through funds or ETFs.
No, the index cannot be invested in directly, but it can be accessed through index funds or ETFs that aim to replicate its composition.
As an equity index, it is subject to market risks, and returns may fluctuate depending on economic conditions and market cycles.
The TRI (Total Return Index) includes both price changes and reinvested dividends, while the PRI (Price Return Index) reflects only price movements of the index constituents.
The index follows a structured 50:25:25 allocation across large, mid and small caps, aligning with SEBI’s multi-cap framework and providing a consistent reference for performance comparison.
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.
