Nifty 500 Tops Key GlobalIndices Peer Chart over last 10 years: Motilal Oswal Asset Management Company
Nifty 500, India’sbroadest index, outperformed most of the world’s leading indices except theNasdaq 100 over the last 10 years, according to the study by Motilal OswalAsset Management Co.
Mumbai, 12th March 2024: According to a comprehensive studyby Motilal Oswal Asset Management Company (Motilal Oswal AMC) on historicalmarket performance, the Nifty 500 has delivered impressive total returns of 16%(refer to Exhibit 1). Notably, this positions the Nifty 500 as one of thetop-performing global indexes over the past decade, second only to the Nasdaq100, which recorded a total return of 21.5% as of December 31, 2023. Incomparison, the S&P 500, MSCI Emerging Markets, and MSCI EAFE (DevelopedMarkets ex-US) have demonstrated growth rates of 15.4%, 6.1%, and 7.9%,respectively, during the same period.
Speaking on the study, Pratik Oswal,Head of Passive Funds, Motilal Oswal Asset Management Company Ltd said, “Over the past decade, Indiahas ascended from the 10th to the 5th position in the global economy. Projectionsfrom industry experts indicate a further climb in rankings by 2030. Investorskeen on capitalizing on India''s robust growth narrative may find value inconsidering an investment in a comprehensive passive fund.” He further added“The Nifty 500 Index stands out as an optimal choice, providing extensiveexposure to Indian equities with over 90% market capitalization coverage.Boasting a well-balanced representation across large-, mid-, and small-capsegments, this index demonstrates a robust diversification in both individualstocks and sectoral allocations. Notably, the Nifty 500 has demonstrated atendency to outperform the Nifty 50 during bullish market phases, while alsooffering a degree of resilience against downturns, particularly in comparisonto mid and small-caps.”
Exhibit 1: Performance comparison with theworld’s leading indices.
|
From |
To |
Data Label |
Nifty 500 (India) |
S&P 500 (USA) |
NASDAQ 100 (Tech) |
MSCI Emerging Mkt (EM) |
MSCI EAFE
(Dev mkt Ex-US) |
|
31-Dec-03 |
31-Dec-08 |
5 Yrs. |
10.3% |
-1.0% |
-2.2% |
9.3% |
3.3% |
|
31-Dec-08 |
31-Dec-13 |
5 Yrs. |
17.8% |
23.9% |
31.7% |
20.9% |
18.6% |
|
31-Dec-13 |
31-Dec-18 |
5 Yrs. |
14.6% |
11.2% |
16.1% |
4.5% |
3.5% |
|
31-Dec-18 |
31-Dec-23 |
5 Yrs. |
17.5% |
19.8% |
27.2% |
7.7% |
12.5% |
|
|
|
31-Dec-03 |
31-Dec-13 |
10 Yrs. |
14.0% |
10.7% |
13.5% |
15.0% |
10.7% |
|
31-Dec-13 |
31-Dec-23 |
10 Yrs. |
16.0% |
15.4% |
21.5% |
6.1% |
7.9% |
Disclaimer - Data as of 31-Dec-2023, Source- MOAMC, NSE,Bloomberg, and FactSet. All benchmark performances are in INR total return.
Energy and Financials were bestperforming sectors over last 10 years (Dec 31 2013-2023) –
The study reveals (see exhibit 2)that the Energy, IT, and Financial were the best-performing sectors, over last10 years as of Dec 2023. The energy topped the chart with 17.8% growth followedby Financial Service and IT generating, 17.2% and 16.3%, respectively. While,during 2003-2013, FMCG (21.8%), Auto (20.1%), and Financial Services (18.5%),were the top 3 performing sectors; it is interesting to note that the majoruptick in these sectors was seen during the 2008-2013 on account of recoveryfrom the global financial crises.
Exhibit 2: Performance comparison with Sectoralindices.
|
From |
To |
Data Label |
Nifty 500 |
Nifty Auto |
Nifty Energy |
Nifty Fin Service |
Nifty IT |
Nifty Pharma |
Nifty Metal |
Nifty FMCG |
|
31-Dec-03 |
31-Dec-08 |
5 Yrs. |
10.3% |
2.9% |
12.9% |
15.9% |
-0.8% |
6.0% |
9.7% |
14.8% |
|
31-Dec-08 |
31-Dec-13 |
5 Yrs. |
17.8% |
40.0% |
7.7% |
21.1% |
36.0% |
27.6% |
13.2% |
29.3% |
|
31-Dec-13 |
31-Dec-18 |
5 Yrs. |
14.6% |
12.8% |
14.6% |
20.7% |
10.8% |
3.6% |
7.8% |
13.9% |
|
31-Dec-18 |
31-Dec-23 |
5 Yrs. |
17.5% |
16.4% |
21.2% |
13.9% |
22.1% |
14.5% |
22.5% |
15.2% |
|
|
31-Dec-03 |
31-Dec-13 |
10 Yrs. |
14.0% |
20.1% |
10.2% |
18.5% |
16.1% |
16.3% |
11.5% |
21.8% |
|
31-Dec-13 |
31-Dec-23 |
10 Yrs. |
16.0% |
14.6% |
17.8% |
17.2% |
16.3% |
8.9% |
14.9% |
14.5% |
Disclaimer - Data as of 31-Dec-2023, Source- MOAMC, NSE,Bloomberg, and FactSet. All benchmark performances are in INR total return.
Pratik Oswal further added “The Motilal Oswal Nifty 500 IndexFund, has established a commendable track record spanning over four years,currently boasting a total Assets Under Management (AUM) of INR 674.61 crore asof January 31, 2024. Impressively, the fund maintains an exceptionally lowtracking error of 0.04% (4 basis points), underscoring its commitment toclosely aligning with the performance of the Nifty 500 Index.”
Midcapoutperformed smallcap and largecap indices -
Among large, mid and small caps, the NiftyMidcap 100 Index noted highest total returns of 20.3% (refer exhibit 3)followed by Nifty Smallcap 100 (17.3%) and Nifty 50 Index (14.6%) during the2013-2023. Over the 10 years ending during 2003-2013, the Nifty 50, NiftyMidcap 100 and Nifty Smallcap 100 noted similar total returns ranging between14%-15%.
|
From |
To |
Data Label |
Nifty 500 |
Nifty 50 |
Nifty Midcap 100 |
Nifty Smallcap 100 |
|
31-Dec-03 |
31-Dec-08 |
5 Yrs. |
10.3% |
11.2% |
11.3% |
12.6% |
|
31-Dec-08 |
31-Dec-13 |
5 Yrs. |
17.8% |
17.7% |
18.3% |
16.6% |
|
31-Dec-13 |
31-Dec-18 |
5 Yrs. |
14.6% |
12.9% |
18.6% |
15.0% |
|
31-Dec-18 |
31-Dec-23 |
5 Yrs. |
17.5% |
16.2% |
22.0% |
19.8% |
|
|
31-Dec-03 |
31-Dec-13 |
10 Yrs. |
14.0% |
14.4% |
14.8% |
14.6% |
|
31-Dec-13 |
31-Dec-23 |
10 Yrs. |
16.0% |
14.6% |
20.3% |
17.3% |
Disclaimer - Data as of 31-Dec-2023, Source- MOAMC, NSE,Bloomberg, and FactSet. All benchmark performances are in INR total return.
About Motilal Oswal AssetManagement Company:
Motilal Oswal Group possesses alegacy in equities for over 3 decades. Motilal Oswal Asset Management CompanyLtd. (MOAMC) is registered with SEBI as the Investment Manager for MotilalOswal Mutual Fund. It was incorporated on November 14, 2008. It providesInvestment Management and Advisory Services to investors based within andoutside India and has Mutual Funds, AIFs and Portfolio Management Servicesbusiness.
Disclaimer:
This has been issued on the basis of internaldata, publicly available information and other sources believed to be reliable.The information contained herein is for general purposes only and not acomplete disclosure of every material fact. The information/data/charts hereinalone is not sufficient and should not be used for development orimplementation of any investment strategy. All opinions, figures, estimates anddata are as on date.
The content does not warrantthe completeness or accuracy of the information and disclaims all liabilities,losses and damages arising out of the use of this information. The statementscontained herein may include statements of future expectations and otherforward-looking statements that are based on our current views and assumptionsand involve known and unknown risks and uncertainties that could cause actualresults, performance or events to differ materially from those expressed or impliedin such statements. Readers shall be fully responsible/liable for any decisiontaken on the basis of this article. MOAMC Internal as on 31st January 2024.Assets under Management as on 31st December 2023 (in lakhs) includes: LiquidFund: 49899.14 | Gilt: 0| Debt: 16535.28| Equity: 2235912.56| ELSS Funds:292169.45| Hybrid Schemes: 133672.34| Solution Oriented Schemes: 0| IndexFunds: 783359.37| Gold ETF: 0| Other ETF: 758722.48| FOF Overseas: 1190.66Geographical Spread (%): Top 5 Cities:61.83 | Next 10 Cities: 12.22| Next 20Cities: 5.56| Next 75 Cities: 5.88| Others: 14.5. Past performance may or maynot be sustained in the future.
