Synopsis: Nifty Next 50 index funds offer exposure to India’s emerging large-cap companies with strong growth potential but higher volatility. Since all funds track the same index, returns are similar and selection depends mainly on cost and fund quality. This article lists the top 5 funds based on 3-year returns (2026).
Nifty Next 50 index funds are passive funds that track the Nifty Next 50 TRI, which includes companies ranked 51st to 100th by market capitalization in India. They do not involve active stock picking and simply replicate the index. These funds offer exposure to high-growth companies often seen as future large caps and are popular for long-term, systematic investing.
Top 5 Nifty Next 50 Index Funds (3-Year Returns)
1. ICICI Prudential Nifty Next 50 Index Fund
- NAV: ₹67.09
- AUM: ₹9,242.36 Cr
- Expense Ratio: 0.39%
- Exit Load: Nil
- Performance Snapshot
- 3-Year CAGR: 18.4%
- 3-Year Absolute Return: 65.9%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 18.4%
- Equity Large Cap Category Average: 15.1%
- Outperformance: +3.3 percentage points
2. UTI Nifty Next 50 Index Fund
- NAV: ₹26.79
- AUM: ₹6,818.26 Cr
- Expense Ratio: 0.44%
- Exit Load: Nil
- Performance Snapshot
- 3-Year CAGR: 18.6%
- 3-Year Absolute Return: 66.8%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 18.6%
- Equity Large Cap Category Average: 15.1%
- Outperformance: +3.5 percentage points
3. SBI Nifty Next 50 Index Fund
- NAV: ₹20.02
- AUM: ₹2,095.74 Cr
- Expense Ratio: 0.38%
- Exit Load: 0.25% (within 30 days)
- Performance Snapshot
- 3-Year CAGR: 18.6%
- 3-Year Absolute Return: 66.7%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 18.6%
- Equity Large Cap Category Average: 15.1%
- Outperformance: +3.5 percentage points
Also read: Best 5 Aggressive Hybrid Mutual Funds With the Highest 3-Year Returns in 2026
4. DSP Nifty Next 50 Index Fund
- NAV: ₹28.58
- AUM: ₹1,308.26 Cr
- Expense Ratio: 0.36%
- Exit Load: Nil
- Performance Snapshot
- 3-Year CAGR: 18.5%
- 3-Year Absolute Return: 66.5%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 18.5%
- Equity Large Cap Category Average: 15.1%
- Outperformance: +3.4 percentage points
5. Aditya Birla Sun Life Nifty Next 50 Index Fund
- NAV: ₹17.96
- AUM: ₹247.31Cr
- Expense Ratio: 0.41%
- Exit Load: Nil
- Performance Snapshot
- 3-Year CAGR: 18.4%
- 3-Year Absolute Return: 66.0%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 18.4%
- Equity Large Cap Category Average: 15.1%
- Outperformance: +3.3 percentage points
Head to Head Comparison
Note: NAV, AUM, expense ratio and exit load data are sourced from Groww. Data as of 3rd July 2026.
Key Takeaways
- All Nifty Next 50 index funds deliver very similar returns (18.4%–18.6% CAGR) because they track the same benchmark index.
- Differences in performance are not meaningful enough for selection in the long run.
- The real deciding factors are expense ratio, tracking error, and fund size (AUM).
- Large funds like ICICI Prudential and UTI offer better stability, while lower-cost funds like DSP offer slight cost efficiency.
- This category has delivered strong returns, but also comes with high volatility and deep market corrections.
Who Should Invest?
Long-term investors who have a time frame of 5+ years, investors who want to invest beyond Nifty 50 in high growth stocks, SIP investors who want to create wealth using passive investing, individuals who are comfortable with high levels of volatility, and investors who have an already diversified core investment portfolio but require exposure to more Aggressive equity allocation are suitable for Nifty Next 50 index funds.
Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or investment recommendation. Returns mentioned are based on historical performance and may not be sustained in the future. Mutual fund investments are subject to market risks, including potential loss of capital. Investors are advised to assess their risk appetite and financial goals and to consult a certified financial advisor before investing.
