The Indian stock market witnessed significant selling pressure on Thursday, with BSE Sensex finishing at a 32-month low of 71,593 and Nifty 50 index ending at an 18-month low of 22,231, as reported by Mint. According to market experts, the Indian stock market is in an oversold zone and can make its bottom soon, though they maintain that the Nifty 50 index would once slip below the 22,000 support before the market makes its bottom. Experts predict a strong rebound once the bottom is reached, with large-cap stocks expected to lead the rebound, followed by mid-cap stocks. However, they are betting on large-cap ETFs rather than large-cap stocks for wealth creation opportunities.
Nifty Total Market Index funds provide investors with single-scheme exposure to large-, mid-, small-, and micro-cap stocks through a passive investment approach. According to reports from Mint, these funds track the Nifty Total Market Index, which includes 750 stocks - all companies that are part of the Nifty 500 and Nifty Microcap 250 indices. The BSE Total Market Index covers more than 1,000 stocks and targets 98% of the BSE AllCap Index by market capitalisation, spanning largecap, midcap, smallcap and microcap companies. As reported by Business Standard, the index covers approximately 93% of India's total market capitalisation as of August 31, 2026, with largecaps accounting for about 56%, midcaps for 20%, smallcaps for 10%, and companies beyond smallcaps for about 7% of the index.
The Nifty Total Market Index has demonstrated strong performance across multiple time periods, as reported by Mint. Over the past year, the index declined 3.14% compared to the Nifty 50's 8.74% decline. The three-year performance shows the index delivering 9.49% returns versus the Nifty 50's 5.75%, while the five-year returns stand at 9.28% against the Nifty 50's 6.29%. The 10-year performance shows 12.87% returns compared to the Nifty 50's 11.38%. These returns include both capital gains and dividends from underlying stocks. The BSE Total Market Index covers 22 sectors and provides broad and adaptive investment universe that allows investors to participate in a wider opportunity set as India's capital markets evolve.
Market experts are recommending large-cap ETFs for significant returns in the current downturn. As reported by Mint, Amit Goel of PACE 360 expects the Nifty 50 index to touch 25,500 by the end of FY27 in normal conditions, whereas in the bull case, the key benchmark index may touch 27,000 by the end of FY27. He suggests investors buy the Nifty 50 ETF and the Nifty 100 ETF by the end of October or by the beginning of November 2026. The Nifty 50 ETF is expected to deliver at least 15% return in the next five to six months, while the Nifty 100 ETF is expected to deliver 18% in this timeframe, as the Nifty 100 index has a history of outperforming the Nifty 50 ETF by 2.50% to 3% when the market is in a bull trend. These recommendations come as experts expect the market bottom to come in the first fortnight of November.
Investors now have two distinct routes to access the BSE Total Market Index through Aditya Birla Sun Life BSE Total Market Index Fund and Aditya Birla Sun Life BSE Total Market ETF. The Index Fund follows the mutual fund route with SIP options available, while the ETF is traded on the stock exchange through demat and trading accounts. Both options provide broad exposure across market-cap segments and sectors through a single investment, allowing investors to participate in India's equity market through a diversified, rules-based approach. The BSE Total Market Index covers 1,527 constituents and covers approximately 95.2% of BSE's total market capitalization. As reported by Business Standard, these products provide exposure to almost the entire equity market through a single passive investment.
As reported by Mint, Nifty Total Market Index funds seek to replicate the underlying index performance but actual scheme returns can differ due to expenses and tracking error. The category offers an alternative to combining multiple market-cap specific funds for broad equity exposure through a single passive fund. According to Business Standard, total market funds may suit retail investors who contribute small amounts through systematic investment plans (SIPs) and those who cannot decide how much to allocate to different market segments. They are also ideal for long-term buy-and-hold investors and new equity investors. However, investors must be willing to tolerate equity market volatility and should have a long horizon. Those who want greater control over allocations may find these funds less suitable, as noted by Mint. Investors should consider their investment horizon, risk appetite and overall asset allocation before choosing between the Index Fund (preferred for SIPs and demat-free investing) or the ETF (suitable for demat account holders seeking exchange-traded flexibility).
