India’s rapid economic growth has positioned it as one of the most promising markets globally, with projections suggesting the country will become the third-largest economy in the world by 2030. With a GDP growth rate forecasted between 6.3% and 6.8% for FY26 by the Economic Survey, the continued expansion across various sectors is set to drive this momentum.
To fully capture this growth, an index that provides broad market exposure is essential, offering investors a unique opportunity to tap into India’s growth story. One such index is the Nifty Total Market Index (NTMI), which offers diversified access to India’s vast and dynamic market.
Let’s take a closer look at what the Nifty Total Market Index offers and how it can help investors make the most of this exciting economic evolution.
The Nifty Total Market Index fund includes approximately 750 stocks from both the Nifty 500 and Nifty Microcap 250 indices. This means it represents nearly 93% of India’s total market capitalisation, providing diversified exposure across all sectors of the economy.
By investing in such a fund, investors gain access to a wide spectrum of businesses, from large, established corporations to emerging small and micro-cap companies, allowing them to tap into India’s growth potential across multiple segments.
The Nifty Total Market Index fund spans 22 sectors, such as technology, finance, healthcare, consumer goods, energy, and more. This diversification helps to mitigate sector-specific risks and ensures that the fund is not overly reliant on any single sector.
The following table highlights the annual returns of the Nifty Microcap 250, Nifty 500 and Nifty Total Market indices for the calendar year 2023 and 2024.
Index | 2024 Annual Return | 2023 Annual Return |
Nifty Microcap 250 | 32.6% | 66.4% |
Nifty 500 | 14.90% | 25.80% |
Nifty Total Market | 15.5% | 26.8% |
There are different total market index funds available in the market, such as Bandhan Nifty Total Market Index Fund and Mirae Asset Nifty Total Market Index Fund.
Apart from the Nifty Total Market Index Funds mentioned above, Angel One MF has launched two new funds that consider Nifty Total Market TRI as the benchmark. The new fund offer (NFO) runs from February 10 to February 21, 2025, providing investors with an opportunity to invest in a diversified index.
This fund is designed to reflect a market-cap-weighted index, allowing investors to capture the full breadth of the Indian market.
The Nifty Total Market Index fund presents a powerful investment opportunity for those looking to capitalise on India’s dynamic growth across various sectors. By offering broad market exposure, sectoral diversification, and access to both large-cap and emerging companies, it allows investors to tap into the full potential of India’s expanding economy.
By investing in the Nifty Total Market Index, investors can position themselves for long-term growth.
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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.
Published on: Feb 19, 2025, 12:33 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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