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    Nifty 50 vs Nifty Next 50: How to Split Your Index Fund Portfolio

    Calculator Paradise TeamNovember 25, 2024

    For passive investors, the Nifty 50 vs Nifty Next 50 allocation is the most important decision.

    The Indices

    Nifty 50: Top 50 stocks (Reliance, TCS, HDFC Bank). Blue chips, stable, 12-13% CAGR. Nifty Next 50: Stocks 51-100. Tomorrow's blue chips, higher growth, 13-15% CAGR. See our [Nifty 50 vs Nifty Next 50 comparison](/compare/nifty-50-vs-nifty-next-50).

    Allocation Strategies

    Conservative: 80% Nifty 50 + 20% Nifty Next 50. Balanced: 60% Nifty 50 + 40% Nifty Next 50 (approximates Nifty 100). Aggressive: 40% Nifty 50 + 40% Nifty Next 50 + 20% Nifty Midcap 150.

    Why Not Just Nifty 100?

    Separate funds allow rebalancing. If Next 50 outperforms (grows to 50% of portfolio), you can trim and buy more Nifty 50 — systematically selling high and buying low.

    Concentration Risk

    Nifty 50: Top 5 stocks = 35-40% of index. Very concentrated. Nifty Next 50: More evenly distributed, less single-stock risk. Combining both reduces concentration.

    SIP Approach

    Set up two SIPs in the desired ratio. Example: ₹6,000 in Nifty 50 + ₹4,000 in Nifty Next 50 for a 60:40 split. Rebalance once a year. Use our [Step-up SIP Calculator](/calculators/step-up-sip-calculator) to plan annual increases.