Nifty Next 50 ETFs give early exposure to future mega-cap leaders

FOR LONG-TERM INDEX INVESTORS, THIS WORKS AS AN EFFECTIVE STOCK-DIVERSIFIER

- SAIKAT NEOGI

INVESTORS SHOULD CONSIDER the Nifty Next 50 exchange traded funds (ETFs) as a low-cost and efficient way to enhance large-cap exposure. Unlike the Nifty 50—which is heavily concentrated in a few mega-cap names—the Nifty Next 50 offers a broader mix of high-potential companies that are likely to become future blue-chip stocks.

While Nifty 50 covers companies ranked 1-50, Nifty Next 50 covers companies ranked 51-100. Together, they give full exposure of large caps to investors.

“It will complement the large-cap allocation by adding growth-oriented stocks in a stable, low-cost structure of passive investing,” says Nehal Mota, co-founder & CEO, Finnovate, a wealth management firm.

Diversification tool

Nifty Next 50 ETFs can be a highly effective complement to a Nifty 50-based portfolio. The Nifty Next 50 is a strong diversifier for long-term index investors.