Nifty Top 15 Equal Weight ETF – A Smart Bet on India’s Market Leaders

Introduction: The Power of Equal Weight Investing in Market Leaders

When it comes to investing in India’s stock market, the focus often remains skewed toward the Nifty 50. But what if there was a smarter way to invest in the top-performing large-cap stocks—one that offers balanced exposure to the nation’s leading companies and better long-term returns? That’s where the Nifty Top 15 Equal Weight ETF steps in.

This blog unpacks everything you need to know about the newly launched ICICI Prudential Nifty Top 15 Equal Weight ETF, a fund that targets sector leaders in India by equally weighting the top 15 companies in the Nifty 50 by their free-float market capitalization. Whether you're a seasoned investor or just beginning your mutual fund journey, this ETF could redefine how you view large-cap investing in India.

What Is Nifty Top 15 Equal Weight ETF?

The Nifty Top 15 Equal Weight ETF is a passive exchange-traded fund launched by ICICI Prudential Mutual Fund. Unlike traditional market-cap weighted indices, where a few giants like Reliance or TCS dominate the portfolio, this ETF offers equal weightage (6.67% each) to the top 15 market leaders in the Nifty 50.

Key Highlights:

• Tracks the Nifty Top 15 Equal Weight Index

• Includes leaders across seven major sectors

• Rebalanced quarterly and reconstituted semi-annually

• Lower expense ratio and traded like a stock on the exchange

• Minimum investment of ₹1,000 in NFO (June 10–24, 2025)

Why Choose Equal Weight Over Market Cap Weight?

1. Diversification Without Overconcentration

In market-cap indices like the Nifty 50, just 5 stocks can account for over 40% of the index. Equal weight solves this by spreading risk evenly across all 15 stocks.

2. Proven Long-Term Outperformance

As per historical data:

• 10-year CAGR (2025):

  • Nifty Top 15 Equal Weight TRI – 15.9%

  • Nifty 50 TRI – 14.9%

• SIP returns (10-year):

  • Nifty Top 15 Equal Weight TRI – 13.9%

  • Nifty 50 TRI – 12.8%

3. Resilience in Market Crashes

During stress events like the Covid-19 crash, taper tantrum, and Ukraine war, the Nifty Top 15 Equal Weight Index outperformed or fell less than the Nifty 50, showcasing defensive strength.

Who Are the Index Constituents?

The index comprises India’s most dominant players in banking, FMCG, telecom, IT, and more. Here are the names driving India's economy:

• HDFC Bank

• ICICI Bank

• Axis Bank

• State Bank of India

• Kotak Mahindra Bank

• Bajaj Finance

• Reliance Industries

• Infosys

• TCS

• Larsen & Toubro

• Bharti Airtel

• Hindustan Unilever

• ITC Ltd.

• Maruti Suzuki

• Mahindra & Mahindra

Each company commands leadership in its sector, from banking and automobiles to consumer goods and technology.

Sectoral Breakdown: Balance Across Industries

Sector Weight in Nifty Top 15 EW Weight in Nifty 50 Difference Financial Services 39.7% 37.3% +2.4% FMCG 13.6% 7.0% +6.6% Automobile 13.8% 7.2% +6.6% IT 12.3% 11.3% +1.0% Telecom 6.8% 4.4% +2.4% Construction 6.7% 3.8% +2.9%

Notably absent are sectors like metals, power, and healthcare—making it ideal for investors who prefer stability and quality over high volatility.

Key Benefits of Investing in This ETF

1. Invest in India’s Sector Champions

Get exposure to companies with dominant market shares, strong cash flows, and resilience across cycles.

2. Transparent & Cost-Efficient

With low tracking error and low expense ratio, ETFs are among the most efficient investment vehicles today.

3. Easy Liquidity

You can buy and sell the ETF anytime during market hours, just like a stock.

4. Periodic Rebalancing

Ensures that no single stock dominates, and the portfolio remains aligned with the equal-weight philosophy.

Performance Snapshot (Annual Returns)

Year Nifty Top 15 EW Nifty 50 2025 YTD 7.1% 5.4% 2024 9.1% 10.1% 2023 19.8% 21.3% 2022 13.7% 5.7% 2021 22.3% 25.6% 2020 11.8% 16.1%

Clearly, the equal weight index has outperformed or kept pace with Nifty 50 in multiple years, especially during volatile or recovery phases.

Valuation Comfort – Attractive Entry Point

The Nifty Top 15 Equal Weight Index is currently trading below its 3-year average PE ratio (21.82 vs. 3-year average of 23.62). This indicates a potential value opportunity for long-term investors.

How to Invest in the NFO?

• NFO Period: June 10 – June 24, 2025

• Minimum Investment: ₹1,000

• Fund Managers: Mr. Nishit Patel & Ms. Ashwini Shinde

• Mode of Investment:

  • Directly with AMC for large investors

  • Via Demat account on NSE/BSE for retail investors

Ideal for Whom?

• Long-term wealth builders

• Index investors looking for diversification

• Low-cost ETF enthusiasts

• Investors seeking exposure to top Indian corporates without overexposure to a few names

Conclusion: A Smarter, Balanced Route to Large-Cap Investing

The ICICI Prudential Nifty Top 15 Equal Weight ETF presents a compelling opportunity for investors who believe in the power of equal exposure, sectoral leadership, and cost efficiency. It balances the strength of large-cap investing with the discipline of passive indexing, making it an ideal choice in today’s market environment.

If you're looking to build long-term wealth with quality Indian stocks, this ETF should definitely be on your radar.

Ready to take the next step? Talk to your financial advisor today or explore the NFO before it closes.