A Nifty Next 50 Index Fund invests in companies listed 51 to 100 on the NSE based on market capitalization.
The companies listed in the Nifty Next 50 Index immediately follow those listed on the Nifty 50 index.
The fund replicates the Nifty Next 50 Index – the fund manager does not independently select stocks.
This means lower costs than actively managed funds.
These companies have the potential to expand and enter the Nifty 50 in the future.
But higher return potential also means more volatility.
So, such funds can be suitable for investors who can handle short-term ups and downs for potential long-term gains.
Understanding the risks and rewards can help you decide if this fund fits your goals.