Celebrating 1 Year of Groww Total Market Index Fund
Imagine an index that seeks to capture nearly the entire Indian stock market - spanning everything from established giants to emerging growth stocks across 22 sectors.
What potential opportunities could this unlock for the investors?
While professionals have varying opinions on which sectors will drive India’s long-term growth, historical performance shows that sectors perform differently at different times, making it challenging to time the growth of a sector precisely.
By tracking the Nifty TMI, investors can aim to avoid speculation and they can own a diverse piece of the Indian economy, encompassing everything from small enterprises to industry giants.
What sets Nifty TMI apart from Nifty 50
Focusing solely on large-cap funds may prevent investors from capitalising on opportunities for potential returns from other market segments.
Conversely, those heavily invested in small and micro-cap segments may face a higher level of risk, influenced by the segments’ responsiveness to market fluctuations.
While some investors might see the broad diversification of the Nifty TMI as a factor that could impact returns, this characteristic has actually enabled Nifty TMI to outperform Nifty 50, which includes only the top 50 large cap companies.
Returns Profile: Nifty Total Market Index has historically generated returns in comparison to Nifty 50, showcasing its potential to capture a wider range of market opportunities.
The Nifty Total Market Index has experienced similar drawdowns compared to the Nifty 50 index in the last 10 years, indicating comparable volatility despite differing compositions, along with slightly better overall performance.
Since the Nifty TMI tracks nearly all the listed companies in the Indian stock market, its growth potential is closely tied to the country’s overall economic growth. Both Nifty 50 and Nifty TMI act as a potentially helpful gauge of the country's economic performance.
For investors looking to capitalise on India's growth story while diversifying opportunities, the Nifty Total Market Index aims to offer a long-term wealth creation opportunity. However, investors should consult their financial advisors to know about their risk appetite.
Discover the Groww Nifty Total Market Index Fund
India's first Total Market Index Fund
