Nifty 50 vs Nifty Next 50 vs Nifty 100

Nifty 50 vs Nifty Next 50 vs Nifty 100

This blog will help the reader to understand the basics of Nifty 50, Nifty Next 50 & Nifty 100. Also, it will compare various features of Nifty 50 vs Nifty Next 50 and Nifty 100.

NIFTY 50 INDEX :-

 Nifty 50 index consists of the Top 50 companies of NSE as per their market capitalization. This flagship index is the most followed index in India. The nifty 50 index consists of the first 50 companies of NSE. All these 50 companies are blue chip and well-established. This index can be used to Judge the overall sentiments of the stock market. Companies in Nifty 50 Keep changing as per their performances. Top performing 50 companies make a place in the Nifty 50. Nonperforming companies go out.
 
 

NIFTY NEXT 50 INDEX:-

The Nifty Next 50 index comprises 51 to 100 companies of NSE as per their market capitalization. Individual stock’s weightage in the index is evenly distributed across all 50 companies. This index has more diversified stocks as compared to Nifty 50. This index has 50 stocks spread across all sectors.

 

NIFTY 100 INDEX:-

The Nifty 100 index comprises of first 100 largest companies listed on NSE as per their market capitalization. Since it covers the top 100 companies it is a Broader index as compared to Nifty 50 and Nifty Next 50. It covers almost all top companies across all sectors. It has a representation of a complete market.

Live Nifty 100 index..Nifty 100 companies list

NIfty 50 vs Nifty next 50 vs Nifty 100 new
NIfty 50 vs Nifty next 50 vs Nifty 100
 
 

Nifty 50 vs Nifty Next 50 vs Nifty 100

Nifty 50

Nifty Next 50

Nifty 100

1. Represents the First 50 companies of NSE.

1. Represents 51 to 100 companies of NSE.

1. Represents the first 100 companies of NSE.

2. Consists of all blue chip and well-established companies.

2. Consists of all reputed middle-level companies. They have the potential of becoming in the top 50 companies.

2. This index is a combination of Nifty 50 and Nifty Next 50. It has a representation of all 100 good companies of the Market.

3. It is a steady less volatile index.

3. It is the most volatile of the three.

3. More volatile than Nifty 50 but less volatile than Nifty Next 50

4. It is less diversified in all three indexes. 

4. It is more diversified than Nifty 50 and less diversified than Nifty
100. 

4. It is the most diversified of the three. It is well-diversified across all
sectors.

5. In Nifty 50, the first 5 companies have a weightage of 35%.

5. In Nifty Next 50, the first 5 companies have a weightage of 18%.

5. In Nifty 100, the First 5 companies have a weightage of 41%.

6. Nifty 50 CAGR

Last 5 Year — 11%

(Period.. 1998 to 1923)

6. Nifty Next 50 CAGR

Last 5 Year — 17.55 %

(Period…1998 to 1923)

6. Nifty 100 CAGR

Last 5 Year — 16.03 %

(Period… 1998 to 1923)

 

 

 

Comparative returns of Nifty 50 vs Nifty Next 50 vs Nifty 100.

All three indices have periods of ups and downs in the market phase. The Nifty Next 50 index is the most volatile of all three indices. It has more ups and downs. Sometimes its performance is very good, and sometimes it is down. In most of the period, in the long run, say a 5-year / 10-year / 15-year period, Nifty Next 50 is outperforming the Nifty 100 and Nifty 50. On the other hand, the returns of Nifty 100 and  Nifty 50 are almost the same. Their stock portfolio overlaps by 85 %.

 
How to invest in Nifty 50 / Nifty Next 50 / Nifty 100.

You can invest in these funds by way of Index Funds or ETFs.

The following is the approximate return of all 3 indexes (Period – 1998 – 2023)

 
Nifty 50 CAGR Last 5 Years –  11 %

Nifty Next 50 CAGR Last 5 Years — 17.55 %

Nifty 100 CAGR return 5 Years  — 16.03%

 

Suitability for investment.

Nifty 50

This is for investors who are looking for steady constant returns. This index is less volatile. It will appreciate your investment in the long term. This is best for the investor looking for a Large cap investment. Investors money will be invested in Top 50 companies of India. The risk in investment is very low.

Nifty Next 50.

 It is more volatile than Nifty 50 and Nifty 100. It is for the investors who are fearless about markets up and down. Its performance is more up and down. This is suitable for investors who are ready to take more risk. Its returns can outperform the returns of Nifty 50 and Nifty 100.

Nifty 100. 

This index is the combination of Nifty 50 and Nifty Next 50. It is very well diversified in 100 stocks across all sectors. It covers all the performing stocks in the market. Investing in this index will give you a steady appreciation of your wealth. The risk of investment is NIL because your investment is spread across 100 companies from different sectors. This is suitable for investors looking for diversified investments in all sectors across the market. 
 

The reader will also like to read  about the following topics

1. Fundamentals of stock   

2. Basic of Future and option

3. PE Ratio

4Nifty vs Sensex 

5. Bull vs Bear Phase in Stock Market

6 . XIRR vs CAGR vs Absolute  Return

7. Home

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