Equal-weight funds: Pick broader universe if risk appetite, horizon permit
Last Update Date: 05-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar said these funds may suit investors who want disciplined rebalancing but not those chasing momentum rallies. He cautioned that broader universes raise volatility, suggested limits by risk profile and a horizon of five to seven years.
More of Abhishek's views on mutual funds
The article explains how equal-weight index funds differ from market-cap-weighted ones, giving each stock in an index the same weight. It covers the effect on concentration, the role of periodic rebalancing, higher costs and tracking error, when such funds tend to do better or worse, and how a broader underlying index adds mid and smallcap risk.
Publisher source
Equal-weight funds: Pick broader universe if risk appetite, horizon permit