Same 50 companies, different weights
The Nifty 50 weights its 50 companies by their market value, so the largest few carry much of the index. The NIFTY50 Equal Weight index holds the same 50 at 2% each.
This year the difference has been large. From 31 December 2025 to Thursday 27 August 2026, the equal-weight index fell 1.04%. The Nifty 50 fell 7.80%.
These are price returns from NSE's daily closes. Where we add dividends, we call it "our estimate": NSE's total return indices aren't in our database, so we rebuild them from each index's daily price and dividend yield.
Over longer windows
| Window to 27 Aug 2026 | Nifty 50 | NIFTY50 Equal Weight | Gap |
|---|---|---|---|
| 2026 so far | −7.80% | −1.04% | 6.76 |
| 1 year | −2.51% | 5.23% | 7.74 |
| 3 years, a year | 7.73% | 13.32% | 5.59 |
| 5 years, a year | 7.60% | 12.25% | 4.65 |
| Since 18 Apr 2017, a year | 10.96% | 12.07% | 1.11 |
Price returns; the gap is in percentage points. Our equal-weight closes start on 18 April 2017.
The gap is widest over recent windows and narrows the further back you go. Over nine years and four months, equal weight is ahead by about a point a year; over three years, by more than five.
Year by year
| Year | Nifty 50 | NIFTY50 Equal Weight |
|---|---|---|
| 2018 | 3.15% | −6.33% |
| 2019 | 12.02% | 2.70% |
| 2020 | 14.90% | 17.62% |
| 2021 | 24.12% | 32.61% |
| 2022 | 4.33% | 6.36% |
| 2023 | 20.03% | 29.79% |
| 2024 | 8.80% | 9.73% |
| 2025 | 10.51% | 13.54% |
| 2026 to 27 Aug | −7.80% | −1.04% |
Equal weight has led in every calendar year since 2020, seven in a row counting this one. Before that it trailed badly: by 9.48 points in 2018 and 9.32 in 2019, years in which the largest companies did better than the rest.
Which way the gap runs depends on whether the largest companies lead or lag the other forty-odd. Since 2020, they have mostly lagged.
The price of the run
The equal-weight index now costs more. On 27 August its P/E was 24.09, against 20.37 for the Nifty 50, a premium of about 18%.
That is unusual. Since 31 March 2021, when NSE moved its P/E to consolidated earnings, the median ratio of the two P/Es has been 0.985: the equal-weight index has usually been slightly cheaper. Only 47 of 1,333 trading days in that period showed a premium as large as today's.
The index funds
| Fund (Direct, Growth) | 2026 so far | 1 year | 3 years | 5 years |
|---|---|---|---|---|
| DSP Nifty 50 Equal Weight Index | −0.74% | 5.83% | 13.94% | 13.09% |
| Aditya Birla Sun Life Nifty 50 Equal Weight Index | −0.75% | 5.79% | 13.89% | 12.97% |
| HDFC Nifty50 Equal Weight Index | −0.83% | 5.71% | 13.89% | 13.04% |
| UTI Nifty50 Equal Weight Index | −0.73% | 5.86% | 13.77% | |
| ICICI Prudential Nifty50 Equal Weight Index | −0.78% | 5.74% | 13.83% | |
| Kotak Nifty 50 Equal Weight Index | −0.72% | 5.74% | ||
| SBI Nifty50 Equal Weight Index | −0.84% | 5.70% |
An eighth, from Axis, launched in July.
Against our estimate of the equal-weight index's total return (6.67% over one year, 14.90% a year over three, 14.04% a year over five), these funds trail by about 0.8 to 1.1 points a year. For comparison, UTI Nifty 50 Index trails its own index's estimated total return by 0.40 points over both one and three years. An equal-weight fund has to rebalance back to 2% each as prices move, and that, along with its charges, shows in the gap.
What this does not tell you
Seven good years is not a law. Equal weight trailed for two straight years before this run, by more than nine points each time. Nothing here says which way the next year goes.
A higher P/E is not a forecast. It says the average company in the index is priced higher than the largest ones, relative to earnings. It can stay that way.
Our closes start in 2017. A longer record could tell a different story. None of this is advice to buy or sell anything.
Where to go from here
Factor investing and smart beta explains equal weighting alongside other alternative index designs, and index funds and ETFs covers the basics. The Nifty P/E ratio page has both indices' valuation history.
For what plain Nifty 50 index funds lag, see Nifty 50 index funds: how far each trails the index, and for the wider market's valuation, the Nifty 500's P/E in August.
Frequently asked questions
How has the Nifty 50 Equal Weight index done in 2026?
From 31 December 2025 to 27 August 2026 the NIFTY50 Equal Weight price index fell 1.04%, closing at 32,984.40. Over the same dates the Nifty 50 fell 7.80%, to 24,090.85. Both hold the same 50 companies; the equal-weight version gives each one the same 2% weight.
Has equal weight beaten the Nifty 50 over the long run?
Over the windows our data covers, yes. From 18 April 2017 to 27 August 2026 the equal-weight index returned 12.07% a year on price against 10.96% for the Nifty 50. But it trailed in 2018 and 2019, by 9.48 and 9.32 points, before leading in every calendar year from 2020.
What do Nifty 50 equal weight index funds return?
To 27 August 2026, the seven Nifty 50 equal weight index funds with a one-year record (Direct plan, Growth option) returned between 5.70% and 5.86% over the year. Our estimate of the equal-weight index's total return was 6.67%, so the funds trailed it by 0.81 to 0.97 points.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.
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