The Next Big Thing: Nifty Next 50 Index Funds

Nifty Next 50 stocks are more evenly distributed across sectors than Nifty 50 ones

- Vivek Ananth

Passive investing through index funds and exchange-traded funds (ETFs) have been on the rise over the past few years as many actively managed funds have underperformed their benchmarks.

Many investors have been investing in index funds and ETFs that track the Nifty 50 index or the Sensex 30 to have an exposure to large-cap stocks.

However, there is another index, though very volatile, some investors have taken to — NSE’s Nifty Next 50 or Nifty Junior. BSE has a similar index, the Sensex Next 50.

The 50 stocks in the Nifty Next 50 and the Sensex Next 50 come after the top 50 stocks (Nifty 50 and Sensex 50) in terms of capitalisation.

The Nifty 50 represents 67 per cent of the free float capitalisation of the stocks listed on NSE.