Groww Nifty Next 50 ETF: Invest in India’s Emerging Blue-Chips
India's stock market isn't just about the giants in the Nifty 50. Right behind them is a group of dynamic, fast-growing companies with the potential to become tomorrow’s market leaders—the Nifty Next 50.
The Groww Nifty Next 50 ETF gives investors easy, low-cost access to this powerful group of companies. Whether you're a long-term wealth creator or a first-time investor looking for diversification and growth, this ETF offers exposure to some of the most promising large-cap businesses in India.
Let’s break it down and see what makes this fund so exciting.
What is the Groww Nifty Next 50 ETF?
The Groww Nifty Next 50 ETF is an exchange-traded fund that aims to track the performance of the Nifty Next 50 Index—a curated basket of the 50 largest companies after the Nifty 50, within the Nifty 100 universe. These companies are large, established, and often on the path to entering the prestigious Nifty 50 Index.
How Has the Index Performed?
-
Long-Term Outperformance
The Nifty Next 50 Index has consistently outperformed the Nifty 50 over multiple rolling return periods.
|
Period |
Nifty 50 Avg Return |
Nifty Next 50 Avg Return |
Outperformance % |
Times Outperformed |
|
3Y |
12.3% |
15.1% |
+2.9% |
65.4% |
|
5Y |
12.6% |
14.9% |
+2.2% |
71.5% |
|
7Y |
13.4% |
15.7% |
+2.3% |
75.8% |
|
10Y |
13.1% |
13.9% |
+0.7% |
99.7% |
-
Strong Resilience During Market Corrections
The index has shown the ability to rebound strongly from downturns, with notable recoveries following sharp declines. For instance:
- After the 2008 crisis (-69%), the index surged +238%
- After the COVID-19 dip in 2020, it bounced back by +53.7%
-
Steady Supply of Future Market Leaders
Over 14 years, 38 companies have moved from the Nifty Next 50 to the Nifty 50, including names like:
- Titan Company
- Bajaj Finance
- Divi’s Laboratories
- Tata Consumer Products
- Adani Enterprises
This track record reflects the growth potential of the companies in this index.
Why Consider the Groww Nifty Next 50 ETF?
-
Access to the Blue-Chips of Tomorrow
The Nifty Next 50 Index contains large, established companies that are potential candidates for the Nifty 50. Investing in this ETF is like backing the future market leaders before they hit the mainstream.
-
Diversified Sectoral Exposure
The index includes a wider mix of sectors, reducing dependence on a few industries. Sectors include:
- Financials
- Power
- Healthcare
- Aviation
- FMCG
- IT
- Capital Goods
This makes the ETF more resilient to sector-specific downturns.
-
Lower Concentration Risk
Unlike the Nifty 50, where the top 5 stocks dominate over 40% of the index, the Nifty Next 50 is more evenly spread.
|
Top Holdings |
Nifty 50 |
Nifty Next 50 |
|
Top 5 |
40.7% |
18.4% |
|
Top 10 |
56.2% |
32.5% |
This wider spread reduces risk from single-stock overexposure, making it a more balanced approach to large-cap investing.
-
Attractive Valuations
As of July 2025, the Nifty Next 50 Index is trading at below-average price-to-earnings (P/E) ratios, indicating potentially attractive entry points for long-term investors.
-
Precision Management with SPEAR
Groww’s proprietary tech—SPEAR (Swift Portfolio Equilibrium Automated Rebalancing)—helps minimize tracking error through:
- Real-time adjustments
- Cost-efficient execution
- Automated rebalancing
This allows for passive precision at scale.
-
Suitable for a Wide Range of Investors
The Groww Nifty Next 50 ETF can be ideal for:
- Long-term wealth creators
- First-time equity investors
- Passive investors looking for smart diversification
The minimum investment amount for this scheme stands at ₹500 and in multiples of ₹1 thereafter, with no exit load. For more information about the scheme, refer to the Scheme Information Documents (SID)
Source - NSE, 21st July, 2025
Source - Cafemutual | Internal Research Groww Mutual Fund, July 03, 2025