UTI Nifty Next 50 Index Fund SIP Calculator

Fund Overview

UTI Nifty Next 50 Index Fund is a low-cost passive fund tracking the NIFTY Next 50 Total Return Index — the 50 companies ranked just below the Nifty 50 by market capitalization. Managing ₹7,300+ crore, it is one of the largest and most established Next 50 index funds in India, launched in June 2018.

The Next 50 is often called the ‘farm team’ of the Nifty 50: many of today’s Nifty constituents — including several of the largest — graduated from this index. Current heavyweights include Divi’s Laboratories, TVS Motor, Tata Motors, Hindustan Aeronautics and Adani Power.

Who Should Invest

This fund suits passive investors who want to tilt their portfolio toward tomorrow’s large caps. Historically, the Next 50 has delivered higher returns than the Nifty 50 over most 5-10 year periods, at the cost of higher volatility — making it an excellent satellite to a core Nifty 50 index fund.

It also suits investors who want zero active-management risk and a predictable, rules-based investment: what you see (the index) is exactly what you get.

Key Strengths

• Low cost — 0.44% expense ratio for the Direct plan, with minimal tracking error
• Compounding tilt — Next 50 historically outperforms Nifty 50 over long horizons as constituent companies grow into large caps
• Complete transparency — holdings mirror the index exactly, no manager judgment, no style drift
• No exit load — invest and redeem freely

Risks to Consider

• Higher volatility than Nifty 50 — annualized standard deviation of ~19% vs ~15% for the headline index
• Deeper drawdowns — Next 50 fell ~26% in the 2024-25 correction
• Index concentration — the Next 50 has chunky weights in a few names (Divi’s, TVS, Tata Motors, HAL), so single-stock risk is not fully diversified
• Passive by design — you bear the full brunt of any index decline; there is no manager to add defensiveness

How It Compares

Versus ICICI Prudential Nifty Next 50 Index and SBI Nifty Next 50 Index, UTI’s version offers a competitive expense ratio (0.44% Direct), a long operating history and UTI’s index-fund infrastructure. Its 3-year CAGR of 19.9% reflects the strong run of Next 50 names — autos, defence and power — during 2023-2026.

Performance Context

Since its 2018 launch, the fund has compounded at 13.4% annually, with a median 3-year rolling return of ~19%. The Next 50’s structural advantage is mechanical: constituents with strong earnings growth get promoted to the Nifty 50, recycling the index toward tomorrow’s winners. That self-renewing property is why the index has outpaced the headline index across most holding periods.

Use Our SIP Calculator with This Fund

To see how a monthly SIP in UTI Nifty Next 50 Index Fund would have performed over any time period, visit our main SIP calculator and select this fund. You can test different investment amounts, start dates, and step-up scenarios using real historical NAV data — not assumed return rates.