Equal weighted index funds are witnessing a lot of interest for the last couple of months.

These are passive funds with a small active element.

According to Mrin Agarwal, Financial Educator & Director at Finsafe India, instead of replicating the index on a market weighted basis, these funds allocate the same percentage of weight into each of the stocks.

Agarwal said these funds are rebalanced on a quarterly basis and some of the funds that are available are Nifty 50 equal weighted funds and Nifty 100 equal weighted funds.

Watch the accompanying video to know the pros and cons of investing in an equal weighted index fund.

Also watch, Joydeep Sen, Corporate Trainer & Author discuss the impact of RBI monetary policy on debt funds.