Nifty Next 50 Index Funds

Do you know why the Nifty Next 50 is a better representation of the Indian economy than Nifty 50. Here is why. Three sectors in the Nifty 50; Financial Services, I.T, and Oil and Gas accounts for a staggering 63.33%. This means that the Nifty 50 is highly concentrated in favour of a few sectors, which are not truly representative of the Indian economy. That means, a few important sectors that can drive the Indian economy growth, they have a very little presence in the Nifty 50.

Like capital goods, the backbone of make in India, internet business is driving the digital revolution and real estate, an integral part of our landscape. Ideally, a benchmark industry gave these sectors a good weightage, but the Nifty 50 does not.

Now let's talk about the Nifty Next 50. It is more diverse and comprises of sectors that are expected to boom over the next decade. It has stocks like D Mart, IRCTC, Naykaa. These are the names that we connect with. On sectoral level Nifty Next 50 has 14.8% in FMCG 10.3% in capital goods and 7.7% in consumer services. With the Nifty Next 50 we get the pulse of the new Indian economy.