Is Nifty Next 50 a good bet? Only if you are a super long-term investor.

Is Nifty Next 50 a good bet? Only if you are a super long-term investor.


View of the National Stock Exchange Wall in Mumbai

Synopsis

For the last 10 years, Nifty Next 50 has returned 13% annually, compared with 12% by Nifty 50. But the picture is not rosy in the short term. While as part of the upcoming rebalancing, Adani Wilmar, Varun Beverages, Canara Bank, etc. will be included in Nifty Next 50, can one expect some relief?

The Nifty Next 50 index is in the eye of the storm. It is down 6% on a one-year basis, compared with the 3.75% dip seen by the Nifty 50 index. To some extent, the fall is due to the 6% weight the Adani group has (excluding ACC and Ambuja Cement) in the Nifty Next 50 index. Even on a five-year basis, Nifty Next 50 is underperforming. But experts say this is actually a feature rather than a bug. In fact, Nifty Next 50 delivers very good returns

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Author: Shirley