Nifty Next 50 Index Fund
Nifty Next 50 Index Funds invest in new and emerging companies in India, ranking between 51st and 100th position in the Nifty Index. These companies have the potential to grow in the future and offer diversified and low-cost investment options.
What are Nifty Next 50 Index Fund?
As the name suggests, Nifty Next 50 Index Funds invest in 50 large cap companies that are not part of the Nifty 50 index. These large cap companies rank between 51st and 100th position in the National Stock Exchange of India as per market capitalisation.
Additionally, these companies have the potential to become market leaders in India and offer low-cost and diversified investment options, balancing risks. As an index fund, it aims to replicate the underlying index's performance and provide returns to investors linked closely to the index’s performance.
Best Nifty Next 50 Mutual Funds
List of the top-performing Nifty Next 50 mutual funds sorted by returns with their AUM and Expense Ratio.
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AUM ₹346 Cr •
Expense 0.11%
AUM ₹903 Cr •
Expense 0.28%
AUM ₹310 Cr •
Expense 0.35%
AUM ₹1494 Cr •
Expense 0.33%
AUM ₹97 Cr •
Expense 0.32%
AUM ₹4873 Cr •
Expense 0.36%
AUM ₹6759 Cr •
Expense 0.31%
AUM ₹1782 Cr •
Expense 0.3%
AUM ₹130 Cr •
Expense 0.35%
AUM ₹1163 Cr •
Expense 0.11%
AUM ₹287 Cr •
Expense 0.25%
AUM ₹160 Cr •
Expense 0.33%
AUM ₹96 Cr •
Expense 0.09%
Advantages of investing in Nifty Next 50 Index Fund
Higher Growth Potential
Compared to Nifty 50 companies, Nifty Next 50 stocks are in their growth phase, offering higher upside potential. These funds allow investors to benefit from the robust expansion of businesses that are scaling up and increasing their market share.
Gateway to Future Blue-Chip Companies
Nifty Next 50 Index Funds provide early exposure to companies that are potential candidates for inclusion in the Nifty 50. These emerging large-cap companies have strong fundamentals and growth potential, making them ideal for investors who want to capitalize on future blue-chip leaders.
Frequently Asked Questions
How is the Nifty Next 50 different from the Nifty 50?
While Nifty 50 represents the top 50 large-cap companies, the Nifty Next 50 includes the next 50 largest companies by market cap. These companies have higher growth potential but slightly higher volatility compared to the Nifty 50 constituents.
Are Nifty Next 50 Index Funds risky?
Nifty Next 50 Index Funds carry moderate risk. While they are more stable than mid-cap or small-cap funds, they are slightly more volatile than Nifty 50 funds. Long-term investors, however, can benefit from their growth potential while mitigating short-term risks.
How are Nifty Next 50 Index Funds taxed?
Nifty Next 50 Index Funds are treated as equity funds for taxation. Gains held for less than 1 year are taxed as Short-Term Capital Gains (STCG) at 15%, while gains held for more than 1 year are taxed as Long-Term Capital Gains (LTCG) at 10% on profits exceeding ₹1 lakh.
How often does the Nifty Next 50 Index change?
The Nifty Next 50 Index is reviewed semi-annually by NSE to ensure it reflects the most relevant companies based on market capitalization and liquidity. New entrants replace companies that no longer meet the criteria.
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