Nifty Next 50 Index Funds in India (2026): List, Returns and Risks

The Nifty Next 50 Index tracks the 50 companies ranked immediately after the Nifty 50 in terms of free-float market capitalisation. These companies represent the next tier of India’s large-cap market and are often viewed as potential future entrants to the Nifty 50, subject to periodic index reviews. Nifty Next 50 Index Funds provide a passive way to gain exposure to this segment by replicating the underlying index. This article explores the best Nifty Next 50 Index Funds, how the index selects stocks, taxation, benefits, risks and key factors to consider before investing.

Best Nifty Next 50 Index Funds

Disclaimer: Please note that the above list of the best flexi cap mutual funds is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.

Note: The data on the list of the best flexi cap investment funds is from 3rd July 2026. This data is derived from the Tickertape Mutual Funds Screener.

• Category: Index Fund
• AUM: Sorted from Highest to Lowest

🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.

What is the Nifty Next 50 Index?

The Nifty Next 50 Index represents the 50 companies that come after the Nifty 50 in terms of free-float market capitalisation on the NSE. These are large, listed companies that are not part of the Nifty 50 yet. The index is often seen as a bridge between established large-cap companies and emerging large-cap candidates, offering exposure to the next tier of India’s equity market.

What are Nifty Next 50 Index Funds?

The Nifty Next 50 Index tracks the performance of the 50 companies ranked immediately after the Nifty 50 based on free-float market capitalisation on the NSE. It forms part of the Nifty 100 Index and represents the next tier of India’s large-cap companies. The index follows a free-float market capitalisation-weighted methodology and is commonly used as a benchmark for index funds and ETFs tracking emerging large-cap stocks.

How the Nifty Next 50 Index Selects Stocks?

• Parent Universe: The index selects companies from the Nifty 100 universe, after excluding the 50 companies already included in the Nifty 50.
• Next 50 Companies: It includes the next 50 large-cap companies based on free-float market capitalisation.
• Free-Float Market Capitalisation: Stock weights depend on publicly available shares, so companies with higher free-float value get higher index weight.
• Liquidity Requirements: Eligible stocks must meet NSE’s trading frequency and liquidity criteria to ensure efficient trading.
• Sector Representation: The index includes companies across sectors, providing exposure beyond the top 50 large-cap stocks.
• Periodic Rebalancing: NSE Indices reviews and rebalances the index periodically to reflect changes in market capitalisation and eligibility.

Overview of Nifty Next 50 Index Funds in India

ICICI Pru Nifty Next 50 Index Fund

This index fund tracks the Nifty Next 50 Index, which includes the 50 companies ranked after the Nifty 50. It follows a passive strategy and aims to replicate the benchmark, subject to tracking error and expenses.

UTI Nifty Next 50 Index Fund

UTI Nifty Next 50 Index Fund passively tracks the Nifty Next 50 Index, offering exposure to emerging large-cap companies listed on NSE. Its returns may differ from the index due to fund expenses, cash holdings and rebalancing.

HDFC NIFTY Next 50 Index Fund

This index fund invests in companies that form part of the Nifty Next 50 Index. It aims to mirror the benchmark’s performance through a passive approach, subject to tracking difference and costs.

SBI Nifty Next 50 Index Fund

SBI Nifty Next 50 Index Fund follows the Nifty Next 50 Index and invests in its constituent companies. It provides passive exposure to the next 50 large-cap stocks after the Nifty 50, subject to tracking error.

DSP NIFTY Next 50 Index Fund

This index fund tracks the Nifty Next 50 Index using a passive investment approach. The portfolio is designed to reflect the benchmark composition, while returns may vary due to expenses and execution differences.

Navi Nifty Next 50 Index Fund

This fund aims to replicate the Nifty Next 50 Index by investing in its constituent stocks. It offers passive exposure to large-cap companies outside the Nifty 50, subject to tracking error and fund costs.

Kotak Nifty Next 50 Index Fund

This index fund tracks the Nifty Next 50 Index and follows a benchmark-based portfolio strategy. It invests in the next 50 large-cap companies after the Nifty 50, subject to tracking difference.

Axis Nifty Next 50 Index Fund

This fund passively tracks the Nifty Next 50 Index. It invests in companies ranked after the Nifty 50 within the large-cap universe and aims to replicate the benchmark’s returns, net of expenses.

Motilal Oswal Nifty Next 50 Index Fund

This index fund follows the Nifty Next 50 Index and provides exposure to companies that may represent the next layer of large-cap stocks. Performance may differ from the index due to tracking error.

Edelweiss Nifty Next 50 Index Fund

This fund tracks the Nifty Next 50 Index through a passive strategy. It invests in benchmark constituents and aims to mirror index performance, subject to fund expenses, tracking difference and rebalancing.

Tax on Nifty Next 50 Index Funds

Nifty Next 50 Index Funds are typically taxed as equity-oriented mutual funds because they invest mainly in listed equities. The tax treatment depends on how long the units are held before redemption and whether the gains are classified as short-term or long-term capital gains.

How to Invest in the Best Nifty Next 50 Index Fund in India?

You can start investing in Nifty Next 50 Index funds in India by following these steps:

1. First, visit an equity investment platform such as smallcase to explore available Nifty Next 50 Index funds.
2. Next, research and identify Nifty Next 50 Index funds based on your investment thesis, time horizon, and risk appetite. Tools like the Tickertape Mutual Fund Screener can help you filter and compare funds based on parameters such as returns, expense ratios, fund size, risk ratios, and more.
3. Once you shortlist the fund, visit smallcase, log in, and search for the fund by name. You can then choose the investment mode, either a one-time lump sum or an SIP, and complete the investment process.

Benefits of Investing in Nifty Next 50 Index Funds

• Exposure Beyond Nifty 50: These funds track the Nifty 100 after excluding Nifty 50 stocks, providing exposure to the next layer of large-cap companies.
• Large Market Representation: As of March 2026, the Nifty Next 50 represented about 11.22% of NSE’s free-float market capitalisation, showing its role in India’s large-cap universe.
• Passive Investment Approach: These funds track the Nifty Next 50 Index rather than actively selecting stocks, so portfolio changes are driven by index methodology and rebalancing.
• Liquidity Context: For the six months ending March 2026, Nifty Next 50 constituents formed about 11.69% of NSE’s traded value, indicating meaningful trading activity in index stocks.
• Growing Relevance of Passive Funds: India’s mutual fund AUM stood at ₹81.58 lakh cr. in May 2026, reflecting broader growth in managed and passive investment products.

Risks Involved While Investing in Nifty Next 50 Index Funds

• Market Risk: These funds invest in equities, so NAVs can move with market corrections, earnings cycles, interest rates and broader economic conditions.
• Higher Volatility Than Nifty 50: Nifty Next 50 stocks are outside the top 50 companies, so they may show sharper price movements during market stress.
• Tracking Error: Fund returns may differ from index returns due to expense ratios, cash holdings, transaction costs, and timing differences during rebalancing.
• Concentration Risk: Although the index has 50 stocks, higher-weight companies and sectors can influence fund performance more than smaller constituents.
• No Active Downside Management: Passive funds follow the index during both rising and falling markets, so they do not actively reduce exposure during weak phases.

Factors to Consider When Investing in a Nifty Next 50 Index Fund

• Position in the Market-Cap Ladder: The Nifty Next 50 comprises companies ranked after the Nifty 50, capturing large-cap stocks not yet in the top 50.
• Potential Nifty 50 Entrants: Some Nifty Next 50 companies may eventually move into the Nifty 50 if they meet market-cap and eligibility requirements during index reviews.
• Higher Volatility Than Nifty 50: These companies are generally less dominant than Nifty 50 constituents, so price movements may be sharper during market corrections.
• Sector Mix: The index’s sector exposure may differ from the Nifty 50, which can affect performance when certain sectors outperform or underperform.
• Stock Weight Concentration: The index is free-float, market-cap-weighted, so larger constituents can have a greater impact on overall returns.
• Tracking Error: Index funds may not exactly match index returns due to expenses, cash holdings, transaction costs and rebalancing timelines.
• Expense Ratio: The expense ratio shows the annual cost of running the fund and forms part of the fund’s overall return difference from the index.
• Tax Treatment: These funds are generally taxed as equity mutual funds, depending on holding period and applicable capital gains rules.

Who Should Consider Nifty Next 50 Index Funds?

• Investors Tracking Companies Beyond the Nifty 50: These funds may be evaluated by investors studying large-cap companies ranked immediately after the top 50 NSE-listed stocks.
• Investors Reviewing Passive Large-Cap Exposure: These funds follow the Nifty Next 50 Index, so portfolio construction is rules-based rather than actively managed.
• Investors Comparing Index Categories: Nifty Next 50 funds may be compared with Nifty 50, Nifty 100, and broader-market index funds.
• Investors Aware of Higher Volatility: Nifty Next 50 companies may see sharper price movements than Nifty 50 constituents during market corrections.
• Investors Studying Potential Index Migration: Some companies in the Nifty Next 50 may move into the Nifty 50 during future index reviews.

To Wrap It Up…

Nifty Next 50 Index Funds provide passive exposure to 50 large-cap companies that sit just below the Nifty 50 in terms of market capitalisation. Investors can also track Nifty Next 50 as of today to understand current index movement. Since these funds closely track the underlying index, it is important to understand their tracking error, expense ratio, portfolio composition, risk profile and taxation before investing. Investors can use the Tickertape Mutual Fund Screener to compare Nifty Next 50 Index Funds based on returns, expense ratio, AUM, risk metrics and other key parameters.

Frequently Asked Questions on Nifty Next 50 Index Funds