Nifty Smallcap 100

As an investor, you can gain exposure to the Nifty Smallcap 100 by investing in small-cap mutual funds or exchange-traded funds (ETFs) that track the index, available through stockbrokers, mutual fund distributors, and online investment platforms. Alternatively, experienced investors may directly buy shares of the index’s constituent companies, though this requires active management and frequent rebalancing.

The primary objective of the Nifty Smallcap 100 index is to provide a transparent and effective benchmark for tracking the performance of the top 100 small-cap companies listed on the NSE. The index aims to capture the growth trends, opportunities, and risks within India’s small-cap segment, enabling investors and fund managers to assess portfolio performance and sectoral allocation.

Investing in the Nifty Smallcap 100 is riskier than large- or mid-cap indices as there is more business risk and volatility involved with small companies. Although the index can provide significant capital appreciation, it also tends to be more vulnerable to market reversals, liquidity issues and company-specific troubles. You must diversify and take a long-term view as an investor to deal with these risks.

Investing in the Nifty Smallcap 100 gives exposure to India's best and fastest-growing small-cap stocks with high return potential. The index offers diversified exposure across various sectors, thus reducing concentration risk. Its transparent and rules-based methodology ensures that only the most liquid and relevant small-caps are included, thus appealing investors in search of growth, innovation and the want to be part of the next wave of market leaders.