Tata Asset Management launches Nifty Next 50 Index Fund: All you need to know

Tata Asset Management has introduced the Tata Nifty Next 50 Index Fund, an open-ended index scheme designed to replicate the performance of the Nifty Next 50 Index (Total Returns Index). The New Fund Offer (NFO) for this scheme is open between September 12 and September 26, 2025. Investors can enter the fund with a minimum investment of Rs 5,000, with top-ups allowed in multiples of  Rs 1. There is no entry load, and an exit load of 0.25% applies if units are redeemed within 15 days of allotment.

The Nifty Next 50 Index consists of companies ranked 51 to 100 by free-float market capitalisation within the Nifty 100. This index includes businesses across sectors such as power, capital goods, consumer services, healthcare, FMCG, realty, and specialty chemicals, many of which have less representation in the Nifty 50.

Data from the National Stock Exchange (NSE) reveals that the top three sectors constitute approximately 40% of the Nifty Next 50, in contrast to about 60% in the Nifty 50. In addition, 19 distinct industries appear in the Nifty Next 50 that are not part of the Nifty 50, broadening the sectoral exposure for investors.

Between January 2003 and September 2025, historical data show that the Nifty Next 50 TRI (Total Returns Index) produced average 10-year rolling returns of 15.94%, exceeding the Nifty 50 TRI at 14.09% and the Nifty 100 TRI at 13.56%.

While these figures highlight robust historic performance, it is noted that past returns do not guarantee future outcomes. The sectoral balance and diversity offered by the index reflect differing risk and growth profiles compared to more concentrated broad-market indices.