Every market leader was once an emerging player, building its foundation before making it to the big league. In India’s dynamic economy, the Nifty Next 50 Index hosts such potential future leaders. This index comprises companies that have outgrown the midcap label but haven’t yet entered the Nifty 50, which represents India’s topmost companies by market capitalization.
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The Bajaj Finserv Nifty Next 50 Index Fund NFO is now open
These are businesses that could potentially become tomorrow’s blue-chip stocks-spanning industries like e-commerce, consumer electronics, retail etc. For investors, this index offers a compelling combination: the relative strength of large caps with the potential growth orientation of mid-sized companies. With India’s economy projected to become the world’s third largest by 2030 (as per estimates from The Centre for Economics and Business Research), these companies may potentially benefit from emerging opportunities for growth.
With this backdrop, Bajaj Finserv AMC has launched the Bajaj Finserv Nifty Next 50 Index Fund, giving investors relatively a convenient and cost-effective avenue to tap into the growth potential of the country’s evolving economic landscape. The New Fund Offer period for this scheme began on April 22, 2025, and will be on till May 6, 2025.
Stepping stone to the top
The Nifty Next 50 has long been a pathway to the Nifty 50. Over the last 15 years, 44 companies from this index have been upgraded to the main benchmark, as per data from NSE Indices as of December 31, 2024. This suggests that many of today’s Nifty Next 50 constituents could potentially be the market leaders of tomorrow.
Moreover, the Nifty Next 50 index spans a diverse range of industries, including airlines, auto parts, and personal care.
The index has also demonstrated relatively steady long-term growth potential. Over the past two decades, it has provided a compound annual growth rate (CAGR) of 20.3% (between February 2003 and February 2025, data as per ICRA MFI Explorer).
This indicates that investors who remained invested for longer durations have generally benefited. However, like any equity investment, returns have varied across different market cycles.
*Past performance may or may not be sustained in future.
Current market opportunity
Valuations play a crucial role in investment decisions, and as of February 2025, the Nifty Next 50 was trading below its historical valuation averages. Lower valuations create an entry point for long-term investors, allowing them to enter at favourable prices and potentially benefit if market recognises with the stock’s inherent value over time.
A fund to consider
For those looking to invest in this space, index funds tracking the Nifty Next 50 provide a low-cost way to gain exposure. The Bajaj Finserv Nifty Next 50 Index Fund offers investors a simple and efficient way to participate in the potential growth of these emerging leaders. An index fund can offer unique advantages, such as:
Lower costs: Index funds have lower expense ratios compared to actively managed funds since they simply track a benchmark index; the fund manager does not handpick stocks.
Diversification: These funds offer exposure across sectors by tracking a broad market index (such as Nifty 50, Nifty Next 50, etc.).
Lower risk: As performance is tied to the overall market rather than individual stock selection, index funds can carry lower risk than actively managed funds.
Long-term growth focus: They are designed for potential wealth creation over time, without frequent portfolio adjustments or high churn.
Simplicity: Their passive approach makes them easy to understand, especially for beginners.
How to invest in the Bajaj Finserv Nifty Next 50 Index Fund
The Bajaj Finserv Nifty Next 50 Index Fund presents a potential opportunity to invest in companies that may shape India’s corporate landscape in the years ahead. Investors can purchase units at a face value of Rs. 10 during the New Fund Offer or NFO period (April 22, 2025 – May 6, 2025). When the fund reopens for subscription, units will be available at the applicable Net Asset Value.
Both Systematic Investment Plan and lumpsum options are available. Lumpsum and SIP options start at Rs. 500 (minimum 6 contributions for SIP). You can invest directly through www.bajajamc.com or through a registered mutual fund distributor.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
