Nippon India Nifty 500 Quality 50 Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 16, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Nippon India Nifty 500 Quality 50 Index Fund Direct Growth Plan had a NAV of ₹10.6018 as of 15 Sep 2026 and a scheme AUM of ₹43 Cr. Its 1-year, 3-year and 5-year returns are -2.9%, 0% and 0%, and the fund sits in the High Risk bucket. Our view is that this is a quality-focused index strategy, but the short record and negative recent return mean it needs patience and a willingness to tolerate swings.
The benchmark behaviour has also been uneven, and the fund has not yet built a long trailing return history. That makes it better suited to investors who want a rules-based equity allocation and can hold through weaker patches rather than those who need smooth near-term outcomes.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹10.6018 as of 15 Sep 2026 |
| AUM | ₹43 Cr |
| Expense Ratio | 0.35% |
| Launch Date | 07 May 2025 |
| Min SIP | ₹100 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Index Funds |
| Exit Load | No exit load |
| Fund Managers | Jitendra Tolani |
The fund is managed by Jitendra Tolani.
Source data date: as of 15 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -5.2% | -4.81% |
| 3M | -3.59% | -3.63% |
| 1Y | -2.9% | -8.27% |
| 3Y | Data not available | Data not available |
| 5Y | Data not available | Data not available |
Recent performance has been weak on a one-month basis, and the fund has moved lower over the latest month in line with a soft equity backdrop. The three-month picture is more stable, with only a modest decline, which tells us the fund has not been in a sharp slide; instead, it has been navigating a choppy stretch with limited follow-through in either direction.
On a one-year view, the fund has held up better than the benchmark, even though both are negative. That matters because it suggests the portfolio has not simply tracked the benchmark down one-for-one over the period. The gap is meaningful enough to show some relative resilience, but not enough to turn the fund’s own return profile positive.
The longer view is still too short for a full cycle assessment, because the scheme launched only in May 2025. The daily path also suggests a pattern of periodic drawdowns and recoveries rather than a steady climb, so investors should think of this as an equity strategy that can lag for stretches before recovering. As a result, the case for the fund rests more on process and style than on a long compounding record.
Source data date: as of 15 Sep 2026
Should you BUY or HOLD Nippon India Nifty 500 Quality 50 Index?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding Nippon India Nifty 500 Quality 50 Index? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Nippon India Nifty 500 Quality 50 Index Fund Direct Growth Plan | -2.9% | Data not available | Data not available |
| ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan | 32.61% | 29.92% | Data not available |
| Tata Nifty Capital Markets Index Fund Direct Growth Plan | 25.91% | Data not available | Data not available |
| Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan | 21.71% | Data not available | Data not available |
| Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan | 20.15% | Data not available | Data not available |
| ICICI Pru Nifty Pharma Index Fund Direct Growth Plan | 18.11% | 18.92% | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
The fund’s one-year return trails the strongest peer figures in this comparison, but that is only part of the picture. The current scheme’s 3-year and 5-year fields are not available because the fund is too new, while some peers already show multi-year records that are much stronger on an absolute basis. That means the short-term comparison is useful for context, but it does not fully describe how this strategy may behave over a complete market cycle.
Even so, the current fund has been less negative than the benchmark over one year, which gives it a better relative shape than the index on that horizon. The peer table also shows that several diversified index themes have delivered materially higher recent returns, so this fund’s appeal is more about its quality-screened equity exposure than about near-term return leadership.
Source data date: as of 15 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Tata Consultancy Services Limited | IT | 5.7% |
| Infosys Limited | IT | 5.37% |
| Bharat Electronics Limited | Capital Goods | 4.29% |
| Bajaj Auto Limited | Automobile & Ancillaries | 4.15% |
| Dixon Technologies (India) Limited | Consumer Durables | 3.84% |
| BSE Limited | Finance | 3.82% |
| Britannia Industries Limited | FMCG | 3.69% |
| Coal India Limited | Mining | 3.31% |
| Colgate Palmolive (India) Limited | FMCG | 3.17% |
| Suzlon Energy Limited | Capital Goods | 2.89% |
The top 10 holdings account for approximately 40.23% of the portfolio.
To see all holdings, visit the Nippon India Nifty 500 Quality 50 Index Fund Direct Growth Plan page
The largest holding is Tata Consultancy Services Limited at 5.7%, followed closely by Infosys Limited at 5.37%. That gap is not wide, which suggests the portfolio is not relying on a single position to do all the work.
Weight then steps down gradually through the rest of the top 10, ending at 2.89% for Suzlon Energy Limited. This pattern points to a relatively balanced set of leading positions rather than a heavily top-loaded structure, although the IT names still stand out near the top.
Because the top 10 account for 40.23% of the portfolio and the scheme discloses 49 holdings in total, the portfolio is spread across a longer tail beyond the largest names. That spread may help reduce the impact of any one holding, but the visible weights still suggest that the biggest positions could meaningfully influence short-term outcomes.
Source data date: as of 15 Sep 2026
Who should invest
This fund suits investors who can tolerate High Risk equity exposure and who are comfortable with a portfolio that may swing around before it settles. The one-year return has been negative, but it has still held up better than the benchmark over the same period, which shows some relative resilience without delivering a positive result.
Given the fund’s short history, it fits better as a medium-to-long horizon allocation than as a near-term parking option. Investors need to accept that the quality screen may help over time, but it does not remove market volatility or guarantee smooth compounding in the early years.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
Exit load: No exit load.
Source data date: as of 15 Sep 2026
Frequently asked questions
What is the current NAV of Nippon India Nifty 500 Quality 50 Index Fund Direct Growth Plan?
The current NAV is ₹10.6018 as of 15 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The 1-year return is -2.9%, while the 3-year and 5-year returns are shown as Data not available because the scheme has not built those full periods yet.
How has the fund performed against its benchmark?
It has done better than the benchmark over 1 year, with -2.9% versus -8.27%. Over 1 month and 3 months, the fund and benchmark have both been negative, with the fund moving a little more weakly in the latest month.
How does the fund compare with the peer funds listed here?
Its 1-year return is much lower than the strongest peer figures shown, but the comparison is not apples-to-apples for long-term history because this scheme is much newer. The short-term result is better viewed as a style check than a complete track record.
What is the minimum SIP amount?
The minimum SIP amount is ₹100.
Who manages the fund and what is the exit load?
The fund is managed by Jitendra Tolani. There is no exit load.
Bottom line
This is a young, high-risk index fund with a short return history, so the recent negative performance matters more than any long-term record at this stage. It has been less weak than the benchmark over one year, while several peers have shown much stronger recent gains, which leaves the fund looking more like a selective equity exposure than a return leader. The portfolio is led by large IT positions and is not overly dependent on a single holding, but investors still need patience for uneven outcomes.
Published on 16 September 2026 at 4:16 PM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.