Nifty Next 50

class="line-height-18 sub-heading-4">The NIFTY Next 50 Index represents a list of 50 companies that come after the top NIFTY 50 companies, according to the free-float market capitalization. As such, they are potential candidates for inclusion into the Nifty 50 Index.

The NIFTY Next 50 Index represents nearly 10% of the free-float market capitalization of the various stocks that are listed on the National Stock Exchange. It was launched in November 1996.

Better diversification: Investing in the NIFTY Next 50 Index allows for a better diversification as compared to the Nifty 50 index. The index doesn’t have concentrated allocation to any single stock.

Higher returns: Also, since the inception of the index, it has delivered annualized returns of around 16%, in comparison to the 12% returns generated by NIFTY. However, most of these returns came in only a single year so far. Investing in a Nifty index along with the Nifty Next 50 has proven to be a far better option.

To select the best stocks from the NIFTY Next 50 Index, you can check factors like stock returns over different time frames, the Return on Equity, the Price to Earnings (P/E) ratio, Price to Book Value (P/BV) ratio, and the company’s profitability.

Based on the past 5 years sales growth, the best-performing companies in the Nifty Next 50 index are:

If you wish to invest in the NIFTY Next 50 Index, you can either do it through mutual funds or Exchange Traded Funds (ETFs).

To invest through Index Mutual Funds, you will need to do as follows:

1. Access an authorized investment website or app that will allow you to invest in mutual funds.
2. Submit your KYC forms. Most websites allow you to do this entire process online, in a 100% paperless manner.
3. Once this is done, you can choose the index that you would like to invest in and make the due payment.

To invest via ETFs, you will need to open a Demat account with an authorized stockbroker. If you already have a Demat account, the process to invest in NIFTY Next 50 Index stocks are the same as purchasing any stock from your Demat account. Keep a note of the NIFTY Next 50 share prices, so you can start making your investments immediately.

Some of the best-performing stocks in the NIFTY Next 50 Index based on the past yearly gains are:

The NIFTY 50 Index consists of the 50 largest companies in India based on the free-float market capitalization. These 50 companies capture a total of 66.8% of the float-adjusted market capitalization of all the companies that are listed on the NSE.

In comparison, the NIFTY Next 50 is an index that comprises 50 companies from the NIFTY 100 list, excluding all the companies that are part of the NIFTY 50 Index, i.e. the next 50 companies based on free-float market capitalization.

Based on the past 5 years profitability, the best-performing companies in the Nifty 50 Index are: