Nifty Next 50 poised for catch-up rally as valuations turn attractive
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Mumbai: Cost-conscious investors looking for value in the large-cap space can consider the Nifty Next 50 index fund-an index that invests in stocks ranked 51-100 by market capitalisation. Expectations of higher earnings growth than the Nifty 50, combined with the recent underperformance relative to the broader Nifty 50, offer value-seeking investors an entry point, according to wealth advisors and fund managers. Higher earnings growth, reasonable valuations and exposure to high-growth sectors make this index a good diversifier for long-term investors who prefer indexing. "In their large-cap portfolio, investors could make a 60% allocation to Nifty Next 50 and the balance to the Nifty 50, given its underperformance and reasonable valuation," says S Shankar, certified financial planner, Credo Capital. Shankar advises investors to maintain an overall 70% allocation to large-cap stocks within their equity portfolios. The Nifty Nex...