CNN Central News & Network–ITDC India Epress/ITDC News Bhopal: Every market leader was once an emerging player, building its foundation before making it to the big league. In India’s dynamic economy, the Nifty Next 50 Index hosts such potential future leaders. This index comprises companies that have outgrown the midcap label but haven’t yet entered the Nifty 50, which represents India’s topmost companies by market capitalization.

These are businesses that could potentially become tomorrow’s blue-chip stocks-spanning industries like e-commerce, consumer electronics, retail etc. For investors, this index offers a compelling combination: the relative strength of large caps with the potential growth orientation of mid-sized companies. With India’s economy projected to become the world’s third largest by 2030 (as per estimates from The Centre for Economics and Business Research), these companies may potentially benefit from emerging opportunities for growth.

With this backdrop, Bajaj Finserv AMC has launched the Bajaj Finserv Nifty Next 50 Index Fund, giving investors relatively a convenient and cost-effective avenue to tap into the growth potential of the country’s evolving economic landscape. The New Fund Offer period for this scheme began on April 22, 2025, and will be on till May 6, 2025.

Stepping stone to the top

The Nifty Next 50 has long been a pathway to the Nifty 50. Over the last 15 years, 44 companies from this index have been upgraded to the main benchmark, as per data from NSE Indices as of December 31, 2024. This suggests that many of today’s Nifty Next 50 constituents could potentially be the market leaders of tomorrow.

Moreover, the Nifty Next 50 index spans a diverse range of industries, including airlines, auto parts, and personal care.

The index has also demonstrated relatively steady long-term growth potential. Over the past two decades, it has provided a compound annual growth rate (CAGR) of 20.3% (between February 2003 and February 2025, data as per ICRA MFI Explorer).

This indicates that investors who remained invested for longer durations have generally benefited. However, like any equity investment, returns have varied across different market cycles.

*Past performance may or may not be sustained in future.

Current market opportunity

Valuations play a crucial role in investment decisions, and as of February 2025, the Nifty Next 50 was trading below its historical valuation averages. Lower valuations create an entry point for long-term investors, allowing them to enter at favourable prices and potentially benefit if market recognises with the stock’s inherent value over time.

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