THE POWER OF ‘NEXT’ Why the Nifty Next 50 Index could deserve a place in your portfolio!

The Nifty 50 Index is just the start of the potential growth opportunities in Indian equities; there exists a large universe of companies beyond it too. One such set of companies is the Nifty Next 50 Index – representing 50 companies from the Nifty 100 (largecap index), after excluding the Nifty 50 companies. Put differently, the Nifty Next 50 Index comprises companies typically ranked between the 51st and 100th positions in terms of their market capitalization. The Index comprises companies within the largecap universe, positioned just beyond the Nifty 50 Index, thus representing the next set of potential market leaders and helping investors diversify beyond the established largecaps of the Nifty 50 Index.

With a sector composition and stock mix that differs meaningfully from the Nifty 50 Index, the Next 50 Index creates a ‘differentiated’ largecap opportunity set—one that combines the relative stability typically associated with the larger largecap stocks, while also capturing the higher growth potential, more characteristic of midcaps.

The Nifty Next 50 Index provides significant exposure to the Capital Goods and Power sectors, which are the 2nd and 3rd largest sectors of this Index with 17.0% and 11.7% weight respectively. The Index is also overweight these sectors vs. the Nifty 50 Index. The Nifty Next 50 Index is overweight the Capital Goods sector by 15.6 percentage points (pp.) and the Power sector by 8.7 pp. relative to the Nifty 50 Index. Additionally, the Next 50 Index is underweight the Financial Services and IT sector relative to the Nifty 50 Index by 15.2 pp. and 7.0 pp. respectively.

Source: NSE Indices Ltd., internal calculations. Data as of May 29, 2026

The top 3 stocks of the Nifty Next 50 Index account for 10.6% weight, compared to 27.2% weight of the Nifty 50 Index, demonstrating reduced stock concentration at the index level. This balanced distribution reduces reliance on a handful of large constituents to drive overall index performance.

Lower concentration can be beneficial from a portfolio perspective, as it could enhance diversification by spreading risk more evenly across the portfolio. As a result, the performance of the index could be less vulnerable to sharp movements in a few heavyweight stocks supported by a broad-er base of constituents. Lower portfolio concentration can also help mitigate the impact of company-specific risks.

Source: NSE Indices Ltd., internal calculations. Data as of May 29, 2026

Source: NSE Indices Ltd. and internal calculations. As on May 29, 2026. ^Nov 8, 2002 has been chosen as the base date since both indices have values from this date onwards. Past performance may or may not be sustained in the future and is not a guarantee of any future returns. HDFC AMC/Mutual Fund is not guaranteeing or promising or forecasting any returns. *CAGR: Compounded Annual Growth Rate, TRI - Total Returns Index.

The Nifty Next 50 TRI has outperformed the Nifty 50 TRI over various time horizons. For example, over the 3-year period ending May 2026, the Nifty Next 50 TRI returned 20.1% CAGR compared to 9.5% for Nifty 50 TRI. However, it is worth noting the strong historical return profile of the Nifty Next 50 Index tends to come with higher volatility.

Source: NSE Indices Ltd. and internal calculations. Based on daily rolling returns of Nifty Next 50 TRI and Nifty 50 TRI. Return Period: Nov 08, 2002 to May 29, 2026 for the abovementioned indices, since Nifty Next 50 Index has TRI values from Nov 8, 2002 onwards. Return Risk Ratio = Average Rolling Returns/Std. Deviation of Rolling Returns. Past performance may or may not be sustained in the future and is not a guarantee of any future returns. HDFC AMC/Mutual Fund is not guaranteeing or promising or forecasting any returns.

By combining the relative stability of largecaps with the growth potential typically associated with midcaps, the Nifty Next 50 index may help to create a compelling opportunity for long-term investors. It’s distinct sector profile, lower stock concentration and stronger track record of historical outperformance vs. the Nifty 50 Index (albeit with higher volatility), mean the Nifty Next 50 Index could play a meaningful role in potentially enhancing portfolio growth and diversification. Thus, for investors looking to move beyond the familiar Nifty 50 Index and participate in tomorrow’s largecap leaders today, it may be time to consider allocating to the Nifty Next 50 Index via HDFC Nifty Next 50 Index Fund and HDFC Nifty Next 50 ETF

Source: Bloomberg, NSE Indices Ltd., internal calculations, publicly available sources

Source: MFI360 Explorer, Morningstar, Bloomberg, internal calculations. Past performance may or may not be sustained in future and is not a guarantee of any future returns. 

Disclaimer: The data/statistics is given for general information purposes only and is not an investment advice. Neither HDFC AMC / HDFC Mutual Fund nor any person connected with them, accept any liability arising from the use of this document. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice. *Gold and Silver prices in INR do not include any customs duties, local taxes etc. Returns less than 1 year period are simple and greater than 1 year period are compounded annualized (CAGR). § Year to date. ∑ Financial year to date

Source: www.hdfcfund.com N.A. - Not Available. TER - Total Expense Ratio (As at last day of the month). Including Additional Expenses and Goods and Service Tax on Management Fees * Annualised tracking error is calculated based on daily returns for the last 12 months ^Investors in the Scheme shall bear the recurring expenses of the Scheme in addition to the expenses of other schemes in which this Fund of Funds scheme makes investment (subject to regulatory limits) 
Disclaimer : The information/data herein alone are not sufficient and should not be used for the development or implementation of an investment strategy. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible/liable for any decision taken on the basis of information contained herein. 
NSE Disclaimer: The above mentioned Schemes offered by HDFC Asset Management Company Limited (HDFC AMC) having benchmark as NSE Indices are not sponsored, endorsed, sold or promoted by NSE INDICES LIMITED (formerly known as India Index Services & Products Limited (IISL)). NSE INDICES LIMITED does not make any representation or warranty, express or implied (including warranties of merchantability or fitness for perticular purpose or use) and disclaims all liabilty to the owners of the Products or any member of public regarding the advisability of investing in security generally or in the Products linked to the respective underlying indices of NSE to track general stock market performance in India. Please read the full Disclaimers in the Offer Document of the Products. BSE Disclaimer: The above mentioned schemes of HDFC AMC having benchmark as BSE Indices are based on the underlying indices of BSE. BSE® and SENSEX® are registered trademarks of BSE Limited. The Schemes is not sponsored, endorsed marketed or promoted by BSE or their respective affiliates. Please refer to the Schemes Information Document for disclaimers.

Source: www.hdfcfund.com N.A. - Not Available. TER -Total Expense Ratio (As at last day of the month). Including Additional Expenses and Goods and Service Tax on Management Fees. 
∞ The Schemes being an Exchange Traded Fund investing in a specific sector carries higher risks versus diversified equity mutual funds on account of concentration and sector specific risk. * Annualised tracking error is calculated based on daily returns for the last 12 months. And for schemes that have completed less than 12 months, Annualised Standard Deviation (tracking error) has been calculated based on the available data, i.e. since inception. Exit load does not apply on ETFs. ^ Margin available / haircut applied depends on broker.  
Disclaimer : The information/data herein alone are not sufficient and should not be used for the development or implementation of an investment strategy. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible/liable for any decision taken on the basis of information contained herein. 
NSE Disclaimer: The above mentioned Schemes offered by HDFC Asset Management Company Limited (HDFC AMC) having benchmark as NSE Indices are not sponsored, endorsed, sold or promoted by NSE INDICES LIMITED (formerly known as India Index Services & Products Limited (IISL)). NSE INDICES LIMITED does not make any representation or warranty, express or implied (including warranties of merchantability or fitness for perticular purpose or use) and disclaims all liabilty to the owners of the Products or any member of public regarding the advisability of investing in security generally or in the Products linked to the respective underlying indices of NSE to track general stock market performance in India. Please read the full Disclaimers in the Offer Document of the Products. 
BSE Disclaimer: The above mentioned schemes of HDFC AMC having benchmark as BSE Indices are based on the underlying indices of BSE. BSE® and SENSEX® are registered trademarks of BSE Limited. The Schemes is not sponsored, endorsed marketed or promoted by BSE or their respective affiliates. Please refer to the Schemes Information Document for disclaimers.

Riskometer as on May 29, 2026. #For latest riskometer, investors may refer to the Monthly Portfolios disclosed on the website of the Fund viz. www.hdfcfund.com

Riskometer as on May 29, 2026. #For latest riskometer, investors may refer to the Monthly Portfolios disclosed on the website of the Fund viz. www.hdfcfund.com

Riskometer as on May 29, 2026. #For latest riskometer, investors may refer to the Monthly Portfolios disclosed on the website of the Fund viz. www.hdfcfund.com πInvestors in the Scheme shall bear the recurring expenses of the Scheme in addition to the expenses of other schemes in which this Fund of Fund scheme makes investment (subject to regulatory limits).

NSE Disclaimer: The above mentioned Schemes offered by HDFC Asset Management Company Limited (HDFC AMC) having benchmark as NSE Indices are not sponsored, endorsed, sold or promoted by NSE INDICES LIMITED (formerly known as India Index Services & Products Limited (IISL)). NSE INDICES LIMITED does not make any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) and disclaims all liability to the owners of the Products or any member of the public regarding the advisability of investing in securities generally or in the Products linked to the respective underlying indices of NSE to track general stock market performance in India. Please read the full Disclaimers in the Offer Document of the Products.

BSE Disclaimer: The above mentioned schemes of HDFC AMC having benchmark as BSE Indices are based on the underlying indices of BSE. BSE® and SENSEX® are registered trademarks of BSE Limited. The Schemes is not sponsored, endorsed marketed or promoted by BSE or their respective affiliates. Please refer to the Scheme Information Document for disclaimers.

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