Nifty Microcap 250 Index

NSE Indices launches a new Index - Nifty Microcap 250 Index which aims to track the performance of microcap stocks listed or permitted to trade on NSE. The index includes the top 250 companies beyond the Nifty 500 index constituents, selected based on their average full market capitalization. A stock’s weight is based on its free-float market capitalization.

The following picture represents the NSE Indices structure for Nifty 500 companies. 

Though NSE has over 1800 companies traded on their exchange, the top 500 companies represent about 94% of the free float market capitalization of the stocks. In other words, if you buy the Nifty 500 index or an ETF, you are buying the entire Indian stock market.




Now, the Nifty Microcap 250 Index represents the stocks from 501 to 750, which are microcap companies.

Check out the Sector representation  and top constituents of this index:


NIFTY MICROCAP 250

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How well the index has performed? The index has returned 14% CAGR over the last 5 years. 

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So, the next obvious question would be whether there will be an index fund and if there were one, is it worth investing?

Index investing and Index products have just started to get the traction, and we have a long way to go before we seen an Index fund or an ETF for this index. We may probably see some few AMCs launching active funds benchmarking this index. 

As the economy and market evolves we may have more funds and ETFs from passive space for small cap (though we have few small cap index funds) and micro cap indices. 

Nifty Alpha 50 Index

Factor-based investing, where stocks are selected based on style factors such as size, alpha, quality, value, momentum and low volatility, remains popular globally and continues to see rising interest in India as well.

NIFTY Alpha 50 is one of many strategy indices available in NSE and the index tracks the performance of 50 stocks with high Alphas in last one year. In order to make the 50 stocks index investible and replicable, criteria such as turnover and market capitalization are applied while selection of securities.
 
Weights of securities in the index are assigned based on the alpha values. Security with highest alpha in the index gets highest weight.
 
Index Construction & Review Methodology:
Calculation Methodology:
The index is constructed using divisor methodology where weights are assigned based on alpha values of the securities.
 
Index Review frequency:
The review of NIFTY Alpha 50 index is undertaken on quarterly basis using data of six month period ending last trading day of February, May, August and November.

Sector Representation:

NIFTY ALPHA 50

Top stocks by weightage:

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Performance of Nifty Alpha 50 Index:

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Nifty 50 vs Nifty Alpha 50 performance:

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image NSE India


As you can see, the Nifty Alpha 50 Index has outperformed Nifty 50 by a wide margin. 


Smart Beta based passive investment styles are increasingly being used by investors across the globe as building blocks in their asset allocation models in their eternal quest to generate market beating returns.

Recently Kotak AMC to come out with an ETF for this index, as it has filed papers with SEBI for the same. 

Mirae Asset NYSE FANG+ ETF and FOF

Mirae Asset AMC launches US FANG Plus ETF and FOF, which opens on 19 April, 2021.

Mirae Asset US FANG Plus ETF is based on the NYSE FANG+ Index, which is an equal-dollar weighted Index designed to represent a segment of the technology and consumer discretionary sectors consisting of 10 highly-traded growth stocks of technology and tech-enabled companies.

What are FAANG stocks?

FAANG is an acronym used to describe some of the most prominent companies in the tech sector. Originally the acronym was FANG, for Facebook, Amazon, Netflix, and Alphabet (formerly Google). In 2017, investors started including Apple in the group, turning the acronym into FAANG.

Over the past decade, the FAANG stocks have grown faster than the overall S&P 500 or the more technology-focused NASDAQ.

Constituents of FANG+ index?

The index includes the five core “FANG” stocks—Facebook, Apple, Amazon, Netflix and Alphabet’s Google—plus another five actively-traded technology growth stocks—Alibaba, Baidu, NVIDIA, Tesla and Twitter.

Performance of FANG+ Index vs Nasdaq 100.

FANG+


As the NYSE FANG+ index tracks the five FAANG stocks and five other tech and tech-enabled leaders, it has historically outperformed the S&P 500 index and Nasdaq 100 over the last 7 years.

As every investor should know, past results don’t guarantee future success. But FANG+ companies exhibit several competitive advantages that make them appealing long-term investments.

Please note, such concentrated indices are highly volatile. Investments in FANG+ ETF or FOF can be considered, if you have a high risk appetite. For others who want US exposure, they consider investing in a broad based index like SPX 500 index fund.


Nippon India S&P Europe 350 Index Fund

Nippon India S&P Europe 350 Index Fund.

Nippon India AMC has filed draft prospectus with SEBI for the launch of S&P Europe 350 Index Fund.

Scheme Details:

S&P Europe 350 Index Fund will be an open-ended Index Fund replicating/tracking S&P Europe 350 Index. The S&P Europe 350 comprises of 350 companies trading in the 16 major developed European
markets.



During the NFO period, the units of the scheme will be sold at the Face Value of Rs.10/- per unit.

Benchmark: S&P Europe 350 Index.

Nippon India S&P Europe 350 Index Fund

Entry / Exit load - Nil.

Expense Ratio - to be updated.