How to Use Nifty 50 & Nifty Next 50 for Investing in the Stock Market?

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Pune, 27th November 2023: Visualize Nifty 50 stocks and Nifty Next 50 stocks as your twin compasses. The Nifty includes India’s premier 50 companies, and the Nifty Next 50 shines a light on the next 50 rising gems.

So, instead of scanning an all stocks list, you can invest in stock market skillfully by focusing on these two indexes. These aren’t just random lists; they can be game-changers, turning novices into strategists. Eager to turn investment dreams into reality?

Let’s jump right in and pave your path to stock market success!

What is Nifty 50 & Nifty Next 50?

The NIFTY 50 index comprises India’s top 50 large-cap companies based on their free-float market capitalization, calculated by multiplying the stock price by actively traded shares. It excludes locked-in shares like those held by insiders.

NIFTY Next 50, a subset of NIFTY 100, includes 50 large-cap stocks after excluding NIFTY 50 constituents. These Next 50 stocks are potential future NIFTY 50 candidates, with over 40 stocks having been upgraded to NIFTY 50 in the past 18 years.

This dynamic selection process makes both indices vital tools for tracking India’s overall stock market performance.

How to Use Nifty 50 & Nifty Next 50 for Investing?

Using stock market indices like the Nifty 50 and Nifty Next 50 might help you diversify your portfolio and reach your financial goals.

Here is how you can use these indices for stock investing:

1. Diversification

For your investments, consider using both the Nifty 50 and Nifty Next 50 indices. These indices offer diversification, with Nifty 50 representing large-cap stocks and Nifty Next 50 covering potential stocks.

Combining them spreads your risk and exposes you to a variety of companies, helping you build a balanced portfolio that meets your financial goals and risk tolerance.

2. Dynamic Asset Allocation

Allocate a portion of your portfolio to Nifty 50 and Nifty Next 50 based on your risk tolerance, goals, and timeline. Large-cap Nifty 50 offers stability, while Nifty Next 50 provides growth potential.

For balance, distribute your investment among them. This dynamic asset allocation strategy helps manage risk and aligns with your individual financial objectives.

3. Index Funds and ETFs

Investors can easily access Nifty 50 and Nifty Next 50 through index funds and ETFs. These investment vehicles replicate the performance of these indices.

By buying units of these funds, investors gain exposure to a diversified portfolio in a hassle-free way to participate in the market without the need for individual stock selection or management. This is a great way to invest in these stocks if you are just starting your investment journey.


Investors seeking varied Indian stock market options can consider Nifty 50 and Nifty Next 50. These indices provide an all stocks list for informed investment selections, balancing stability and growth.

You can invest in these indexes or the constituted stocks by using an online investment app, depending on factors such as whether it is an easy-to-use trading platform. The platform should offer all the required tools and resources you need to navigate these indexes and maximize your investments.