The number
On 1 October 2026 the Nifty Next 50 closed at 68,981.35. That is 1.31% higher than a year earlier. Over the same year the Nifty 50 fell 9.72%, to 22,421.95.
The Next 50 is the fifty companies that rank just below the Nifty 50 by size. In 2026 the two have parted company: from the last close of 2025 to 1 October the Next 50 is down 0.55% and the Nifty 50 down 14.19%.
The two indices, side by side
Price returns to 1 October 2026, a year or more annualised:
| Period | Nifty Next 50 | Nifty 50 |
|---|---|---|
| 2026 so far | −0.55% | −14.19% |
| 1 year | 1.31% | −9.72% |
| 3 years | 15.23% | 4.51% |
| 5 years | 10.16% | 5.04% |
| 10 years | 11.64% | 10.03% |
| Deepest fall in 3 years | −26.67% | −15.77% |
These are price indices, so they leave out dividends. The Next 50's dividend yield on 1 October was 1.06%, the Nifty 50's 1.23%.
The lead is not a law of nature. Year by year:
| Year | Nifty Next 50 | Nifty 50 |
|---|---|---|
| 2016 | 7.07% | 3.01% |
| 2017 | 44.76% | 28.65% |
| 2018 | −9.00% | 3.15% |
| 2019 | 0.46% | 12.02% |
| 2020 | 14.84% | 14.90% |
| 2021 | 29.87% | 24.12% |
| 2022 | −0.07% | 4.33% |
| 2023 | 26.45% | 20.03% |
| 2024 | 27.45% | 8.80% |
| 2025 | 2.02% | 10.51% |
The Next 50 came out ahead in five of those ten years and behind in five. 2018 and 2019 together cost it more than 20 points against the Nifty 50, and as recently as 2025 it trailed by 8.5 points. Its good years are very good and its bad years come in runs.
The 17 index funds that track it
Direct-plan Growth options with at least a year of history, to 1 October 2026. Expense ratios (TER) are the latest each fund disclosed, at the end of September or the start of October 2026.
| Fund | TER | 1 year | 3 years | 5 years |
|---|---|---|---|---|
| Edelweiss Nifty Next 50 Index | 0.20% | 2.12% | 15.90% | — |
| Kotak Nifty Next 50 Index | 0.24% | 1.99% | 15.87% | 10.90% |
| Axis Nifty Next 50 Index | 0.26% | 2.04% | 15.80% | — |
| Navi Nifty Next 50 Index | 0.29% | 1.92% | 15.75% | — |
| HDFC Nifty Next 50 Index | 0.35% | 1.82% | 15.57% | — |
| DSP Nifty Next 50 Index | 0.36% | 1.95% | 15.78% | 10.79% |
| LIC MF Nifty Next 50 Index | 0.36% | 2.21% | 15.85% | — |
| SBI Nifty Next 50 Index | 0.37% | 1.89% | 15.79% | 10.73% |
| Bandhan Nifty Next 50 Index | 0.37% | 1.89% | — | — |
| ICICI Prudential Nifty Next 50 Index | 0.37% | 1.74% | 15.59% | 10.60% |
| JioBlackRock Nifty Next 50 Index | 0.41% | 2.02% | — | — |
| Aditya Birla Sun Life Nifty Next 50 Index | 0.45% | 1.98% | 15.66% | — |
| Motilal Oswal Nifty Next 50 Index | 0.45% | 1.85% | 15.79% | 10.76% |
| HSBC Nifty Next 50 Index | 0.46% | 1.59% | 15.47% | — |
| UTI Nifty Next 50 Index | 0.46% | 1.94% | 15.83% | 10.74% |
| Bajaj Finserv Nifty Next 50 Index | 0.47% | 1.24% | — | — |
| Groww Nifty Next 50 Index | 0.52% | 1.86% | — | — |
Two more funds, from Tata and Choice, are under a year old and left out. So is Nippon India's Junior BeES fund of funds, which holds an ETF rather than the shares.
What the table says
The funds beat the price index, because they collect dividends. Over three years the index's price rose 15.23% a year; the thirteen funds with a three-year record returned 15.47% to 15.90%. Dividends of about one per cent a year, less each fund's costs, make up the gap.
The spread between funds is small, but it is not zero. Across three years the best fund (Edelweiss) returned 0.43 of a point a year more than the worst (HSBC). On ₹10 lakh held for those three years that is roughly ₹17,000 by the end. Over one year the spread is wider, 1.24% to 2.21%.
Cost explains some of it, not all. Edelweiss and Kotak have the lowest TERs and two of the three best three-year returns. But UTI, at 0.46%, returned 15.83%, ahead of cheaper funds. Today's TER is a snapshot; a fund that cut its fee recently was charging more for most of those three years, and how closely a fund tracks the index matters too.
The valuation behind the run
The Next 50's price-to-earnings ratio was 18.08 on 1 October 2026, down from 20.73 a year earlier. Since 31 March 2021, when NSE switched its index P/E to consolidated earnings, the median has been 23.12, and only about 1% of trading days closed at a lower figure.
That is low against recent history, and for once it is a shade below the Nifty 50's 19.19. A low P/E is a description, not a forecast: it can stay low, or go lower, if earnings fall. Our Nifty 50 P/E post for October explains why the 2021 change in the earnings base matters for comparisons like this.
How to use this
- Pick on cost and tracking, not on last year. All 17 funds own the same fifty stocks. Compare the TERs and each fund's history on its page via the index fund list.
- Size it for the falls. Its 26.67% drop within the last three years was about 1.7 times the Nifty 50's 15.77%.
- Check the overlap. Many large-cap and flexi-cap funds already hold Next 50 names. The overlap tool shows how much.
All figures are from NSE index data and each fund's daily NAV history. This is not a recommendation to buy any fund.
Frequently asked questions
How has the Nifty Next 50 done against the Nifty 50 in 2026?
Much better. From the last close of 2025 to 1 October 2026 the Nifty Next 50 price index slipped 0.55% while the Nifty 50 fell 14.19%. Over the year to 1 October 2026 the Next 50 rose 1.31% and the Nifty 50 fell 9.72%.
Which Nifty Next 50 index fund has the lowest expense ratio?
Among Direct plans, Edelweiss Nifty Next 50 Index Fund at 0.20% a year, then Kotak at 0.24% and Axis at 0.26%, from the TERs disclosed at the end of September 2026. The most expensive with a one-year record was Groww at 0.52%.
Is the Nifty Next 50 riskier than the Nifty 50?
Over the last three years, yes. Its deepest fall in that time was 26.67% (to 28 February 2025) against 15.77% for the Nifty 50, and in the ten calendar years 2016 to 2025 it trailed the Nifty 50 in five of them.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.
Keep reading
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Small-cap funds led on 1, 5 and 10 years to 1 October 2026, with the deepest falls. Large caps trade below their usual P/E. How to weigh the three.
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Factor index funds cost up to three times a Nifty 50 fund. Over three years to October 2026 most beat it, but momentum funds fell twice as far on the way.
Direct vs regular plans: the 1.16-point equity fee gap
A regular equity plan costs a median 1.16 points a year more than its direct twin, on AMFI's September 2026 data. Over ten years, direct ended 10.2% ahead.