The UTI Nifty Next 50 ETF is an exchange-traded fund that aims to replicate the performance of the NIFTY Next 50 Index. This index comprises 50 companies that are next in line to be included in the NIFTY 50, representing a diverse range of sectors and industries.
Key Details:
- Ticker Symbol: UTINEXT50
- ISIN: INF789F1AUW9
- Listing: National Stock Exchange of India (NSE)
- Expense Ratio: Approximately 0.36%
Performance:
- 1-Year Return: 28.23%
- Since Inception (June 8, 2018): Average annual returns of 15.15%
UTI Nifty Next 50 ETF Share Price
As of January 28, 2025, the UTI Nifty Next 50 ETF (ticker: UTINEXT50) is trading at approximately ₹71.52 on the National Stock Exchange (NSE).
Key Details:
- 52-Week Range: The ETF has experienced a 52-week high of ₹83 and a low of ₹55.98, indicating significant price fluctuations over the past year.
- Market Capitalization: The ETF’s market capitalization stands at around ₹2,071.70 crore, reflecting its substantial presence in the market.
- Expense Ratio: The ETF offers a low expense ratio of approximately 0.36%, making it a cost-effective option for investors.
Investment Considerations:
- Liquidity: As an ETF, it offers liquidity similar to stocks, allowing investors to buy and sell units during market hours.
- Diversification: Investing in this ETF provides exposure to a broad spectrum of companies poised for potential inclusion in the NIFTY 50.
- Risk Profile: While the ETF offers growth potential, it also carries market risks associated with equity investments.
Top Holdings:
The ETF’s portfolio mirrors the NIFTY Next 50 Index, which includes companies such as:
- ABB India
- Adani Green Energy
- Dabur India
- Hindustan Aeronautics
- Zomato
These companies span various sectors, including capital goods, power, FMCG, and technology.
Investment Considerations:
- Liquidity: As an ETF, it offers liquidity similar to stocks, allowing investors to buy and sell units during market hours.
- Diversification: Investing in this ETF provides exposure to a broad spectrum of companies poised for potential inclusion in the NIFTY 50.
- Risk Profile: While the ETF offers growth potential, it also carries market risks associated with equity investments.
For the most current information, including real-time prices and detailed performance metrics, it’s advisable to consult financial platforms or the official UTI Mutual Fund website.
Performance
- Strong Historical Returns: Since its inception in 2018, the UTI Nifty Next 50 ETF has delivered solid returns, averaging about 15.15% annually. Over the past year, it has delivered an impressive 28.23% return (as of recent data). This indicates a strong potential for growth, especially as the underlying Nifty Next 50 index itself is designed to capture mid-to-large-cap stocks that could soon be part of the Nifty 50.
- Diversification: The ETF provides diversified exposure to the Nifty Next 50 index, which includes companies that represent a broad range of industries, from consumer goods (e.g., Dabur India) to capital goods (e.g., Hindustan Aeronautics). This diversification can help mitigate sector-specific risks.
Liquidity and Flexibility
- Liquidity is a key strength of the UTI Nifty Next 50 ETF. Being an ETF, it can be bought and sold on the National Stock Exchange (NSE) like stocks during market hours. This provides a level of flexibility for investors looking for easy entry and exit.
- The NSE listing also means it’s easy to trade the ETF on major platforms, providing easy access for retail investors.
Risks and Considerations
- Market Volatility: As with any equity-based investment, the UTI Nifty Next 50 ETF is subject to market fluctuations. Investors should be prepared for short-term volatility, particularly in periods of market correction.
- Sector Concentration: Though the ETF offers diversification, there could still be significant exposure to certain sectors, like technology and consumer goods. While these sectors have been strong performers, any downturn in these areas could impact returns.
- Tracking Error: As with any index-tracking ETF, there is a potential for tracking error, meaning the ETF’s performance may slightly differ from the index’s due to fund management or market factors. However, this tracking error tends to be small in ETFs like this.
Ideal for Long-Term Investors
- Given its focus on companies that are likely to be the next big movers in the market, the UTI Nifty Next 50 ETF is best suited for long-term investors who have a higher risk tolerance. Investors looking for a more aggressive growth strategy may find this ETF appealing as part of a diversified portfolio.
Final Verdict
The UTI Nifty Next 50 ETF is a good option for investors seeking growth potential and diversification without high management fees. It’s suitable for those who are looking to capture the upside of mid-to-large-cap stocks, potentially before they make it to the NIFTY 50 index. However, as with any equity investment, it comes with its share of risks, so it’s best suited for investors with a long-term horizon and a moderate to high risk tolerance.
If you’re already invested in or are considering the Nifty 50, this ETF could serve as a complementary addition to your portfolio, helping to boost growth while maintaining a balanced exposure to Indian equities.
UTI Nifty Next 50 ETF Returns
Here’s a detailed table of the UTI Nifty Next 50 ETF returns:
| Period | Return (%) |
| 1-Year Return | 28.23% |
| Since Inception (June 8, 2018) | 15.15% (annualized) |
| 3-Year Return | Approx. 17.18% (annualized) |
| 5-Year Return | Approx. 13.80% (annualized) |
| Expense Ratio | 0.36% |
Key Notes:
- 1-Year Return (28.23%): This strong performance shows the ETF’s ability to capture growth in its holdings.
- Since Inception (15.15%): An average annual return of around 15.15% since launch, showing consistent growth over time.
- Expense Ratio (0.36%): The ETF’s low expense ratio ensures that investors can benefit from growth without significant fees eating into returns.
These numbers make the UTI Nifty Next 50 ETF a potentially solid growth option with a relatively low cost, making it attractive for long-term investors.
UTI Nifty Next 50 ETF Direct Growth
Here’s a detailed overview of the UTI Nifty Next 50 Index Fund – Direct Growth in tabular format:
| Parameter | Details |
| Fund Name | UTI Nifty Next 50 Index Fund – Direct Growth |
| Fund Type | Open-ended Index Fund |
| Benchmark | NIFTY Next 50 Total Returns Index (TRI) |
| Launch Date | June 8, 2018 |
| Assets Under Management (AUM) | ₹4,873 Crores (as of Sept 30, 2024) |
| Expense Ratio | 0.36% |
| Risk Level | Very High |
| NAV (Net Asset Value) | ₹25.08 (as of Jan 1, 2025) |
Performance:
| Time Period | Returns (%) |
| 1-Year | 28.23% |
| 3-Year | ~17.18% (annualized) |
| 5-Year | ~13.80% (annualized) |
| Since Inception | 15.15% (annualized) |
Top Holdings:
| Company | Sector |
| ABB India | Capital Goods |
| Adani Green Energy | Renewable Energy |
| Dabur India | FMCG |
| Hindustan Aeronautics | Defense |
| Zomato | Technology Services |
Key Features:
- Diversification: Exposure to 50 large-cap companies across various sectors, offering balanced risk and return potential.
- Low Cost: With an expense ratio of 0.36%, it’s an affordable way to invest in a growth-oriented index.
- Liquidity: Open-ended structure with daily NAV updates for easy entry and exit.
- Suitability: Best for long-term investors with a higher risk appetite aiming for capital appreciation.
Strengths Of UTI Nifty Next 50 ETF
(1) Diversification:
- The ETF provides exposure to 50 well-diversified, large-cap companies across various industries like FMCG, renewable energy, pharmaceuticals, and technology.
- It reduces sector-specific risks by spreading investments across multiple industries.
(2) Growth Potential:
- The NIFTY Next 50 Index includes companies that are often market leaders in their respective sectors and are potential candidates for inclusion in the NIFTY 50.
- It offers the opportunity to invest in companies with high growth potential before they transition into the larger NIFTY 50 index.
(3) Cost Efficiency:
- With a low expense ratio of approximately 0.36%, it is a cost-effective way to gain exposure to high-performing companies without incurring high fund management fees.
(4) Liquidity:
- As an ETF, it is listed and traded on the National Stock Exchange (NSE), providing high liquidity. Investors can buy or sell units during market hours.
(5) Passive Management:
- The fund passively tracks the NIFTY Next 50 Index, ensuring low tracking error and minimal impact from fund manager bias.
(6) Transparency:
- ETFs disclose their holdings daily, offering full visibility into where your money is invested.
(7) Steady Performance:
- Historical returns of the NIFTY Next 50 index have been competitive, with average annualized returns of around 15% since inception for this ETF.
Risks Of UTI Nifty Next 50 ETF
(1) Market Volatility:
- As an equity-based ETF, its performance is directly tied to market conditions. It is subject to sharp fluctuations during market corrections or economic downturns.
(2) Tracking Error:
- Although the ETF strives to replicate the NIFTY Next 50 Index, slight deviations (known as tracking error) may occur due to fund expenses or market inefficiencies.
(3) Concentration Risk:
- While diversified, the index may have significant exposure to certain sectors like consumer goods or technology, making it sensitive to sector-specific downturns.
(4) Liquidity Risk in Underlying Securities:
- While the ETF itself is liquid, some of the underlying stocks may have low trading volumes, potentially affecting the ETF’s ability to replicate the index performance during volatile times.
(5) Lack of Active Management:
- Passive management means the fund cannot take advantage of market opportunities or mitigate risks through tactical allocation.
(6) Economic and Policy Risks:
- Changes in government regulations, interest rates, or global economic conditions can impact the performance of companies within the index.
(7) Not Ideal for Short-Term Goals:
- Due to its volatility, the ETF is better suited for long-term investors. Short-term investors may face challenges due to market fluctuations.
Who Should Invest?
- Ideal for Long-Term Investors: Those with a horizon of 5+ years who are willing to ride out short-term volatility for potentially higher returns.
- Risk-Tolerant Investors: Suitable for investors who can handle market swings and want exposure to mid-to-large-cap stocks.
Conclusion
The UTI Nifty Next 50 ETF is a well-diversified and cost-effective option for gaining exposure to emerging large-cap companies. While it offers strong growth potential, it is subject to market risks and volatility, making it better suited for investors with a long-term horizon and a higher risk tolerance.
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