I went and checked how much my "passive" Nifty index…
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I went and checked how much my "passive" Nifty index fund's sector mix has actually shifted in 5 years.
"Passive investing" gets talked about like the underlying basket never changes. So I pulled the actual NSE sector-weightage data for the Nifty 50 going back five years to see how true that actually is.
Turns out, not very.
IT used to be roughly 14% of the index. It's down to about 8.5% now, a pretty steady slide, not one bad year dragging the average down.
Oil & Gas similarly went from around 12.8% to 8.7%.
Telecom did the opposite; it's more than doubled, from about 2.3% to 5%.
And a few sectors that weren't index categories at all a few years ago: defense, e-commerce, and airlines, are now sitting at close to 4.6% combined.
Financial Services has stayed the anchor through all of it, hovering in the mid-to-high 30s most years (dipped once, recovered).
Made a quick chart tracking all five sectors over the five years (attached).
What struck me is that none of this shows up anywhere unless you go looking for it. The fund just quietly becomes a different mix of businesses year over year, even while the SIP amount and fund name stay the same.
*(Not investment advice, just something worth actually checking instead of assuming.)*
#education
source
"Passive investing" gets talked about like the underlying basket never changes. So I pulled the actual NSE sector-weightage data for the Nifty 50 going back five years to see how true that actually is.
Turns out, not very.
IT used to be roughly 14% of the index. It's down to about 8.5% now, a pretty steady slide, not one bad year dragging the average down.
Oil & Gas similarly went from around 12.8% to 8.7%.
Telecom did the opposite; it's more than doubled, from about 2.3% to 5%.
And a few sectors that weren't index categories at all a few years ago: defense, e-commerce, and airlines, are now sitting at close to 4.6% combined.
Financial Services has stayed the anchor through all of it, hovering in the mid-to-high 30s most years (dipped once, recovered).
Made a quick chart tracking all five sectors over the five years (attached).
What struck me is that none of this shows up anywhere unless you go looking for it. The fund just quietly becomes a different mix of businesses year over year, even while the SIP amount and fund name stay the same.
*(Not investment advice, just something worth actually checking instead of assuming.)*
#education
source
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