NIFTY or NIFTY Next 50: Which is a better collection of stocks suitable for trading and investing alike (2024)

FAQs

Which is best to invest Nifty 50 or Nifty Next 50? ›

If you're seeking higher growth potential and are comfortable with more volatility, the NIFTY Next 50 offers an attractive alternative. Diversifying your investment across these indices can also be a prudent strategy, allowing you to balance risk and return according to your investment profile.

By investing in the NIFTY 50 index, you get to invest in 50 leaders in their sectors. So you give yourself a great chance to accumulate enormous wealth in the long run. And investing in the NIFTY 50 index can be convenient, easy, and cost-effective if you invest through index Mutual Funds.

The price changes in the options market are faster than those in the spot market, allowing traders to use volatility to their advantage. Bank Nifty is known for high volatility, making it ideal for intraday option traders. Download the Bajaj Broking app to capitalize on these market opportunities.

The expense ratio of the Nifty 50 index fund offered by HDFC Mutual Fund is 0.10%, which is significantly lower than the average expense ratio of actively managed equity funds in India, which is around 1.5%.

1. Current NAV: The Current Net Asset Value of the UTI Nifty Next 50 Index Fund - Direct Plan as of Aug 23, 2024 is Rs 27.31 for Growth option of its Direct plan. 2. Returns: Its trailing returns over different time periods are: 68.21% (1yr), 24.32% (3yr), 24.54% (5yr) and 17.72% (since launch).

The Nifty 100 combines the Nifty 50 and Nifty Next 50, offering a comprehensive view of the top 100 companies listed on the NSE. An extensive index includes market leaders and potential leaders, making it a broad indicator of the market's performance.

Traders prefer stocks with significant volatility, as it provides the desired price fluctuations necessary for intraday trading. Bank NIFTY, characterised by high volatility, presents opportunities for traders due to frequent and rapid price changes in the options market.

Nifty 50 is less volatile than Bank Nifty. So start with Nifty 50.

The Nifty50 Equal Weight Index tends to outperform the Nifty 50 Index when there is a broad market rally, as is often the case after a large market decline.

It's calculated in percentage terms. Among large cap funds, Navi Nifty 50 Index Fund has the lowest tracking error of 0.01% among large cap index funds followed by Navi Nifty Next 50 Index Fund with tracking error of 0.02%. In the midcap space, Navi Nifty Midcap 150 Index Fund has the lowest tracking error of 0.01%.

What is the difference between Nifty Alpha 50 and Nifty Next 50? ›

NIFTY 50: The focus is on the largest and most liquid companies from different sectors. The index represents the overall market performance. NIFTY Alpha 50: The focus is on the high-alpha stocks. The index is more about individual stock performance than the overall market performance.

The Nifty Next 50 Index represents 50 companies from Nifty 100 after excluding the Nifty 50 companies. The Nifty Next 50 Index represents about 10% of the free float market capitalization of the stocks listed on NSE as on September 29, 2023.