Nifty Next 50 (Junior Nifty) Index

About Index

Nifty Next 50 Index is owned and maintained by India Index Services & Products Limited (IISL), a subsidiary of NSE. The Nifty Next 50 Index represents 50 companies from Nifty 100 after excluding the Nifty 50 companies. Earlier Nifty Next 50 Index was known as Junior Nifty Index. As on March 31, 2016 Nifty Next 50 Index represents about 12% of the free float market capitalisation of stocks which are listed on NSE, that means it gives 12% exposure to equity market.

Generally it is observed that companies first becomes part of Nifty Next 50 index, grows here and becomes part of Nifty 50 Index.

Portfolio Mix

As per Value Research  Online, considering ICICI Prudential Nifty Next 50 Index Fund, index comprise of 87% of Giant & Large Cap stocks and 13% of Mid Cap Stocks, with average market capitalisation of 37,035 Cr. Top 10 stocks account for approximately 34% of the portfolio.

Index Performance:

Index Value Chart – August 2000 to October 2016.

Point to Point – Monthly Rolling Returns

In following table we have considered value of Index on 5th of every month. If 5th is a holiday, value of next working day is considered. For 15 year period first annualised return (CAGR) is calculated from August 7, 2000 to August 5, 2015 and rolled over up to October 5, 2016 giving us 15 data points.

During this period, the average return of these 15 points was 17% (CAGR). The highest return was 23% and lowest was 14% with standard deviation of  3%.

SIP – Monthly Rolling Returns

In following table we have considered value of Index on 5th of every month. If 5th is a holiday, value of next working day is considered. For 15 year period first annualised return (CAGR) is calculated considering investment of Rs. 10,000 in each month from August 7, 2000 to August 5, 2015 and rolled over up to October 5, 2016 giving us 15 data points. During this period total Rs. 18 Lakh was invested, i.e. Rs. 10,000 each month x 15 years x 12 months.

During this period, the average return of these 15 points was 18% (CAGR). The highest return was 20% and lowest was 17% with standard deviation of  1%.

Available Funds based on Nifty Next 50 Index

As on September 30, 2016 there are four mutual funds which are based on Nifty Next 50 Index.

  1. Goldman Sachs Junior BeES – ETF
  2. ICICI Prudential Nifty Next 50 Index Fund – Index Fund
  3. IDBI Nifty Junior Index Fund – Index Fund
  4. SBI ETF Nifty Next 50 – ETF

Click here to find out expense ratio of each of these funds.