ABSLAMC launches industry’s first BSE Total Market Index Fund, NFO opens September 30

The fund will track the BSE Total Market Index, giving investors exposure to approximately 93 per cent of India’s total market capitalisation across large, mid, small and micro-cap segments.

The index comprises stocks representing 98 per cent of the BSE AllCap Index’s market capitalisation, with a minimum of 1,000 constituents and no upper cap, a structure designed to expand as more companies list on Indian exchanges.

Current allocation stands at 56 per cent large-cap, 20 per cent mid-cap, 10 per cent small-cap and 7 per cent micro-cap, spanning 22 sectors. The index rebalances semi-annually in June and December, with weights based on free-float adjusted market capitalisation.

Managing Director and CEO A. Balasubramanian said the fund addresses investor confusion arising from an expanding universe of investment choices. “...why make the difficult decision to choose a slice when you can participate in getting the whole pie?...” he said at the launch event in Mumbai.

The fund’s passive investment structure means expense ratios will be lower than actively managed funds. Historical rolling return data cited at the launch showed the BSE Total Market Index has delivered approximately 50 basis points of additional annualised return over the BSE 500, and around 150 basis points over the Sensex, without a significant difference in standard deviation. The index has posted a CAGR of 13.82 per cent over 20 years.

Hemen Bhatia, Head of Passives at ABSLAMC, who co-introduced India’s first banking ETF in 2006, noted the index’s adaptive design sets it apart from numbered indices such as the Nifty 50 and Sensex, whose market-cap coverage has declined over time as India’s equity market expanded. “...the index will endeavour to remain faithful to the word ‘Total’...” he said.

ABSLAMC currently manages overall AUM of ₹6,279 billion as of June 30, 2026. The firm has built a dedicated passives team, separate from its active fund management operations, to support the business. Passive funds in India have grown from ₹1.6 lakh crore to ₹15.5 lakh crore over the past six years, with passive investors now accounting for approximately 19 per cent of total mutual fund folios.

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