NIFTY 500 TRI
The NIFTY 500 Total Returns Index (NIFTY 500 TRI) is the dividend-reinvested variant of the NIFTY 500, the broadest major index in the NIFTY family. It covers the 500 largest companies listed on the National Stock Exchange of India (NSE) by full market capitalisation, representing approximately 96% of NSE’s total free-float market capitalisation. Published by NSE Indices Limited, the NIFTY 500 TRI includes companies from all three SEBI-defined market-cap segments – large-cap (top 100), mid-cap (101-250), and small-cap (251-500) – providing a single composite benchmark for broad-market equity mutual fund strategies.
Publisher and base data
- Publisher: NSE Indices Limited
- Base date: 3 November 1995
- Base value: 1,000
- Constituent count: 500
The NIFTY 500’s base date matches that of the NIFTY 50, enabling direct long-run return comparisons between the flagship large-cap index and the total-market index since the modern era of Indian equity markets.
Relationship with sub-indices
The NIFTY 500 is the parent index for the three SEBI-defined market-cap sub-indices:
| Sub-index | Ranks covered | SEBI market-cap category |
|---|---|---|
| NIFTY 100 | 1-100 | Large-cap |
| NIFTY Midcap 150 TRI | 101-250 | Mid-cap |
| NIFTY Smallcap 250 TRI | 251-500 | Small-cap |
| NIFTY 500 | 1-500 | All three segments |
This architecture means the NIFTY 500’s composition, weighting, and performance can be fully decomposed into large-cap, mid-cap, and small-cap contributions.
Methodology
The NIFTY 500 uses free-float market capitalisation weighting following NSE Indices’ standard index methodology. Constituent selection applies the same criteria as for the sub-indices: free-float market cap ranking, liquidity screening (minimum impact cost thresholds), listing history requirements, and financial health screens. The index is reconstituted semi-annually, in April and October, with constituent changes announced with advance notice.
The TRI layer reinvests all cash dividends on ex-dividend dates. The aggregate dividend yield of the NIFTY 500 blends large-cap (higher yield) and small-cap (lower yield) components, typically resulting in an index-level dividend yield of 1.0-1.3% per annum.
Sectoral composition
| Sector | Approximate weight (%) |
|---|---|
| Financial Services | 25-30 |
| Information Technology | 12-15 |
| Oil, Gas and Consumable Fuels | 8-11 |
| Fast-Moving Consumer Goods | 7-9 |
| Healthcare | 6-9 |
| Automobile and Auto Components | 5-8 |
| Capital Goods | 4-7 |
| Metals and Mining | 3-5 |
| Chemicals | 2-4 |
| Consumer Discretionary | 2-4 |
| Power | 2-4 |
| Others | 8-12 |
Historical returns
| Period | Approximate NIFTY 500 TRI CAGR |
|---|---|
| 1-year (FY2024-25) | 7-10% |
| 3-year CAGR (2022-25) | 16-19% |
| 5-year CAGR (2020-25) | 22-27% |
| 10-year CAGR (2015-25) | 14-17% |
| Since base (Nov 1995 - 2025) | 14-17% |
Over long periods, the NIFTY 500 TRI has outperformed the NIFTY 50 TRI due to the higher growth potential of midcap and smallcap companies, though with greater short-term volatility.
Mutual fund usage
The NIFTY 500 TRI serves as the benchmark for:
- Multi-cap equity funds: SEBI requires a minimum 25% allocation to each of the three market-cap segments; the NIFTY 500 TRI is the natural aggregate benchmark.
- Flexi-cap equity funds: flexible allocation across market caps; NIFTY 500 TRI or BSE 500 TRI are standard benchmarks.
- NIFTY 500 index funds: direct replication products from several AMCs.
- Value and contra funds: broad mandates often use NIFTY 500 TRI.
See also
- NIFTY 50 TRI
- NIFTY Midcap 150 TRI
- NIFTY Smallcap 250 TRI
- BSE 500 TRI
- National Stock Exchange of India
- Equity ETF (India)
- Mutual fund
References
- NSE Indices Limited. “NIFTY 500 Index Methodology.” niftyindices.com. Accessed 2026.
- SEBI. Circular SEBI/HO/IMD/DF3/CIR/P/2017/114 on mutual fund categorisation.
- SEBI. Circular SEBI/HO/IMD/DF3/CIR/P/2018/04 on TRI benchmarks.
- AMFI. “AMFI semi-annual market-cap list.” amfiindia.com. 2025.