Nifty Small Cap 100

Explore key insights about the Nifty Small Cap 100 Index, which represents the performance of 100 small-cap companies listed on the National Stock Exchange (NSE).

What is the Nifty Small Cap 100 Index?

The Nifty Small Cap 100 Index tracks the performance of 100 small-cap companies listed on the NSE. These companies collectively represent about 5% of the float-adjusted market capitalization of all NSE-listed stocks (as of September 30, 2024).

History of the Nifty Small Cap 100

The index was launched on July 18, 2005, by the NSE to track the top 100 small-cap stocks. It was designed for investors seeking growth potential by investing in emerging businesses across various sectors.

Key Features of the Nifty Small Cap 100

• Sector Coverage: The index spans industries such as Financial Services, Capital Goods, IT, Healthcare, Chemicals, and more.
• Historical Returns: Over the last 15 years, the index has provided an average annual return of 12.3%, reflecting its potential for long-term growth despite inherent volatility.

Why Was the Nifty Small Cap 100 Launched?

The index was developed to provide balance within the Nifty Small Cap indices, complementing the Nifty Small Cap 50 and Nifty Small Cap 250, and to offer a focused option for investors aiming to capitalize on companies with low market capitalization.

FAQs About the Nifty Small Cap 100

1. How are companies selected for the Nifty Small Cap 100?

   Companies ranked 251st to 350th by free-float market capitalization are included in the index.

2. How often is the index reviewed?

   The index is reviewed semi-annually, typically on January 31st and July 31st, to incorporate the latest market changes.

3. Who should invest in Nifty Small Cap 100?

   The index is ideal for investors seeking long-term growth opportunities and willing to accept higher market risk.

4. How can I invest in Nifty Small Cap 100?

   Investments can be made through brokerage firms or directly on the stock exchange.