Nifty Total Market Index

The Nifty Total Market Index represents 750 stocks listed on the National Stock Exchange (NSE). The index tracks the performance of these 750 stocks across sectors and market caps, including large cap, mid cap, small cap and micro cap segments. The index gives a much broader view of the market compared to any other indices.

Stocks that are a part of the Nifty 500 index and the Nifty Microcap 250 index form a part of the Nifty Total market Index. Stock’s weight is based on its free-float market capitalisation. Rebalanced semi-annually, the index has given an average of 14.54% CAGR since inception.

Key Features of the Nifty Total Market Index

This index doesn’t merely provide a glimpse into a segment of the market; it offers a comprehensive insight, capturing the variety of stocks. 

Here's a breakdown of its main features:

  • Weight Based on Free Float Market Capitalisation

A significant characteristic of this index is its approach to weightage. The weight of each stock in the index is based on its free float market capitalisation. It only counts the free-floating shares that the public can actually buy and sell. This means any shares that are held by the promoter of the company are not considered. 

By using this method, it gives a more accurate picture of market movements for investors.

  • Index Rebalanced on a Semi-Annual Basis

This index is reconstructed twice every year, in March and in September. 

During this time, the components of the index are realigned with the Nifty Microcap 250 and the Nifty 500. This means if there have been any changes in the compositions of either of these indices, the Nifty Total Market Index also reflects that.

  • Gives a Broader Picture of the Stock Market

It tracks the performance of stocks across large-cap, mid-cap, small-cap and micro-cap segments. The index provides a more comprehensive view of the Indian equity market than any other indices.

Components of the Nifty Total Market Index

This index is designed to offer a panoramic view of the Indian stock market. While other indices might focus on a select group of stocks, it broadens this perspective to include a wider spectrum.

Here are the top constituents of the Nifty Total Market Index by weightage:

Company’s Name

Weight (%)

HDFC Bank Ltd.

8.52

Reliance Industries Ltd.

5.92

ICICI Bank Ltd.

4.87

Infosys Ltd.

3.72

ITC Ltd.

2.82

Tata Consultancy Services Ltd.

2.50

Larsen & Toubro Ltd.

2.37

Axis Bank Ltd.

1.94

Kotak Mahindra Bank Ltd.

1.88

Hindustan Unilever Ltd.

1.63

*Data as on 11 September 2023

Disclaimer: All information contained herewith is provided for reference purposes only. The information has been sourced from the NSE official website. Groww.in doesn’t take any responsibility for the accuracy of the information provided above.

Groww Mutual Fund is all set to launch the Groww Nifty Total Market Index Fund - an open ended scheme replicating/tracking the total market index.

The scheme is India’s first total market index fund. Groww Nifty Total Market Index Fund aims to give investors a broader view of the Indian stock market. The scheme will follow a passive investment strategy, meaning it will track the performance of the stocks present in the underlying index. The NFO (New Fund Offer) opens on 3 October 2023 and closes on 17 October 2023.

Nifty Total Market Index vs Nifty 50 

Let’s see how the Nifty Total Market Index measures up against the Nifty 50.

Features

Nifty Total Market Index

Nifty 50

TR Index Returns (1 year)

18.45%

15.90%

TR Index Returns (3 years)

24.71%

21.81%

TR Index Returns (5 years)

15.13%

13.74%

TR Index Returns (10 years)

16.33%

14.46%

TR Index Returns (15 years)

13.79%

12.67%

Stock Count

750

50

Sectoral Representation

Diverse across multiple sectors

Mainly top-performing sectors

Company Size Representation

Large-cap, mid-cap, small-cap and micro-cap

Primarily large-cap

Weightage Criteria

Free float market capitalisation

Free float market capitalisation

Objective

Broad market exposure          

Representing top 50 stocks by market cap

The Nifty Total Market Index differs from its other counterparts in one main area – it offers a more comprehensive snapshot of the Indian stock market. You will not have to look at separate indices for different sectors and different market capitalisations. 

If you’re looking for a broader overview of the Indian stock market, the Nifty Total Market Index is the answer!   

Disclaimer: This content is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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