Nifty 500 vs. Angel One Nifty 50 Index Fund: Sector Allocation and Return Comparison

Investors looking to diversify through index funds often face a key choice: go wide with the Nifty 500, or stay focused with the Angel One Nifty 50 Index Fund. Both are built on different philosophies, broad market capture vs. blue-chip strength. This article simplifies the comparison across sector weights, returns, and risk to help you decide what suits your investment approach better.

Nifty 500: Broad Exposure to Indian Markets

The Nifty 500 represents the top 500 listed companies on the NSE, covering around 92.29% of India’s total market capitalisation as of March 28, 2025. It uses the free float market capitalisation method and offers diversified exposure across large, mid, and small-cap stocks.

Key Features:

• Covers ~85.85% of NSE’s total traded value (last 6 months)
• Ideal for diversified exposure
• Includes 500 companies across 20+ sectors

Angel One Nifty 50 Index Fund: Focused on Market Leaders

Launched in May 2025, the Angel One Nifty 50 Index Fund invests in India’s top 50 companies. These are well-established large-cap firms with high liquidity and strong fundamentals.

Key Features:

• Tracks the Nifty 50 index
• Invests in companies covering 55.48% of NSE’s market cap
• AUM: ₹36.15 crore| Expense Ratio: 0.20%
• High-risk rating, suitable for long-term stable growth

Sector Allocation Comparison

Note: ‘Others’ include sectors like chemicals, real estate, services, textiles, and diversified.

Also Read: How ₹5,000 Monthly Investment Can Become ₹25 Lakh?

Returns Comparison

Note: Angel One Nifty 50 Index Fund is new, so return history is not yet available.

Conclusion

If you’re looking for broad-based diversification, the Nifty 500 offers a balanced mix of large, mid, and small caps across all major sectors. It's ideal for investors seeking exposure beyond just the top companies.

On the other hand, the Angel One Nifty 50 Index Fund focuses on market leaders, suitable for conservative investors who prefer stability and time-tested blue chips.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.