That is an replace over the submit about efficiency comparability of assorted issue and cap-based indices in 2022.
I’ve used information from January 1, 2009 till March 31, 2025. I might have thought of information since April 1, 2005. Nonetheless, the information for Nifty 50 Worth 20 index is offered solely from 2009. I’ve thought of the Worth index (and never the Whole Returns index) for the evaluation.
Have thought of a number of cap-based indices.
- Nifty 50
- Nifty 100
- Nifty Midcap 150
- Nifty Smallcap 250
- Nifty Microcap 250
- Nifty Subsequent 50
- Nifty 500
I’ve thought of the indices for numerous components as effectively.
- Worth: Nifty 50 Worth 20, Nifty 500 Worth 50
- Momentum: Nifty 200 Momentum 30
- High quality: Nifty 200 High quality 30
- Low Volatility: Nifty 100 Low Volatility 30
Issue Indices vs Cap-based Indices: Calendar 12 months Returns

Issue Indices vs Cap-based Indices: Efficiency comparability

How do you utilize this data?
- Don’t belief the information blindly. There could also be errors in my evaluation.
- I’ve proven long-term information. Therefore, for a few of the indices, the long-term information might look very spectacular. Firstly, previous efficiency doesn’t assure future efficiency. Secondly, the long-term information often appears fairly clean. It’s going to conveniently disguise the unstable journey {that a} explicit index would have taken you thru. Or relatively you are likely to ignore these facets and focus merely on the returns. Lengthy-term, for many buyers, is only a collection of short-term investments. Therefore, earlier than contemplating any of the indices chosen for this submit, you could look past the returns information as effectively.
- Conviction in an funding technique is crucial. No funding technique, irrespective of how good, works on a regular basis. No funding technique, irrespective of how unhealthy, fails on a regular basis. The ups and downs will check your persistence. In the event you lack conviction, you’ll principally probably leap the ship on the mistaken time.
- Give attention to constructing a low-cost diversified long-term portfolio. In case you are eager on including an element product, you’ll be able to take into account such a product as a part of your satellite tv for pc portfolio and allocate accordingly.
The Caveats
- Previous efficiency (or outperformance) doesn’t assure future efficiency (outperformance).
- Whereas I’ve thought of the information from January 2009, many of those issue indices had been launched a lot later. Therefore, the outperformance by these issue indices might merely be a results of back-fitting. Efficiency on reside information might turn into underwhelming. I wrote a submit in early 2024 the place I in contrast the efficiency of issue indices since launch.
- Alpha (extra returns) from an funding technique can shrink if severe cash chases the technique. For example, for a few of the methods/issue indices, the index funds/ETFs have been launched very lately.
- I’ve proven returns for indices. You don’t put money into indices. You put money into index funds or ETFs. Such merchandise can have monitoring distinction for numerous causes and can decrease your returns. The monitoring distinction might improve if the underlying shares are much less liquid.
Supply
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Disclaimer: Registration granted by SEBI, membership of BASL, and certification from NISM by no means assure efficiency of the middleman or present any assurance of returns to buyers. Funding in securities market is topic to market dangers. Learn all of the associated paperwork rigorously earlier than investing.
This submit is for training function alone and is NOT funding recommendation. This isn’t a advice to take a position or NOT put money into any product. The securities, devices, or indices quoted are for illustration solely and aren’t recommendatory. My views could also be biased, and I’ll select to not concentrate on facets that you simply take into account vital. Your monetary targets could also be totally different. You’ll have a special danger profile. You might be in a special life stage than I’m in. Therefore, you could NOT base your funding choices based mostly on my writings. There isn’t a one-size-fits-all resolution in investments. What could also be funding for sure buyers might NOT be good for others. And vice versa. Due to this fact, learn and perceive the product phrases and situations and take into account your danger profile, necessities, and suitability earlier than investing in any funding product or following an funding method.