Nifty Next 50 is an index of the 50 largest companies listed on the NSE after the Nifty 50. An index fund tracking it lets you invest in these potential future large-cap companies in one go.
The index captures the performance of 'next-in-line' companies that could enter the Nifty 50. It offers exposure to mid-to-large cap stocks that are growing.
NSE Indices constructs and maintains the Nifty Next 50 using objective rules. Fund houses create index funds or ETFs that passively track that index.
An index fund buys the same stocks in the same proportions as the Nifty Next 50. It aims to match the index return, keeping costs low since it’s passively managed.
Diversification across 50 companies reduces single-stock risk. Low expense ratios compared with active funds make it cost-efficient. Good for investors seeking growth exposure beyond large caps.
These stocks can be more volatile than Nifty 50 members. Sector concentration and market cycles may affect returns. Index composition changes periodically.
Investors looking for long-term growth, those comfortable with higher volatility than top large-cap funds, and anyone wanting a one-step way to own a diversified basket of emerging large caps.
Search for an index fund or ETF that tracks Nifty Next 50. Compare expense ratio, tracking error, and fund size. You can buy through brokers, mutual fund platforms, or directly from fund houses.
Check tracking error, fund flows, and index reconstitution dates. Rebalance in your portfolio only if overall allocation drifts from your target.
Nifty Next 50 offers diversified exposure to companies likely to become tomorrow’s large caps. It’s a low-cost way for investors to ride mid-to-large cap growth, with slightly higher volatility.