Sensex — Mutual Fund Term Explained

BSE's benchmark index tracking India's 30 largest companies. Often used interchangeably in news media to describe broad market direction.

The BSE Sensex (Sensitivity Index) is the benchmark index of the Bombay Stock Exchange, tracking the 30 largest companies on BSE. One of the oldest indices in India.

While often quoted in news, the Nifty 50 (50 stocks) is more diversified and used by most institutional investors.

Related terms

• Nifty 50 — India's benchmark stock market index tracking the 50 largest NSE-listed companies. Primary reference point for large cap equity returns.
• Benchmark — The market index a fund is compared against. A fund manager must beat the benchmark consistently to justify active management fees.
• Large Cap Fund — A fund investing at least 80% in the top 100 companies by market cap. Lower volatility with stable blue-chip exposure.

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