Here's How Nifty Next 50 Has Performed Since 2003

Difference Between Nifty 50 & Nifty Next 50

Nifty 50 is the benchmark index of India. It is an index of the top fifty companies listed on the Indian stock market. Nifty Next 50 or Nifty Junior is an index with the next top 50 companies listed in India i.e., the companies ranking 51 to 100 on the stock market. They are viable candidates to be included in Nifty whenever they are eligible.

Let us now focus on Nifty Next 50. There are many known large companies from various sectors included in this index. Rather than trying to pick individual stocks, it is better to invest in such an index. Here are some of the companies in Nifty Junior that you might have heard of:

Ambuja Cements
Bandhan Bank
DMart
Berger Paints
Colgate
Dabur
ICICI General Insurance
Interglobe Aviation (Indigo Airlines)
Muthoot Finance
Oracle
Pidilite Industries (Fevicol)
Procter & Gamble (Whisper & Vicks)
United Spirits (Johnnie Walker, McDowell’s No. 1 & Royal Challenge)

To see all the fifty companies in this index, please visit this link.

Performance From 2003

Below is the performance of Nifty Next 50 since 2003. It includes any dividends disbursed by the companies. There have been ups and downs, but the performance has been very decent over the long term if we had stuck with our investment. The index fell 64% in 2008; however, it recovered and has given handsome returns after that.

How To Invest

There are two ways to invest in this index:

The first option is to invest in a Nifty Next 50 index fund, a mutual fund type. Here are a couple of options I might use:

If you have a demat account, you can invest in a Nifty Junior ETF listed on the stock market:

SBI - ETF Nifty Next 50
Nippon India ETF Junior BeES

I personally invest in the ETF (Junior BeES) every month and plan to continue to do so for the next twenty five years at the least.

Conclusion

If you want to grow your money and create wealth, investing in equities is one of the best options for people like you and me. It is cheap to invest and participate in the growth of our economy to create wealth. Nifty Next 50 gives you an option to invest in the top 51 to 100 companies at a low cost while other active mutual funds would charge you as high as 1% or 2%.