HDFC NIFTY Next 50 Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

HDFC NIFTY Next 50 Index Fund Direct Growth Plan is an index fund with a current NAV of ₹16.6613 as of 16 September 2026 and scheme AUM of ₹2,708 Cr. Its 1-year, 3-year and 5-year returns are 2.95%, 15.44% and 0%, and the scheme is tagged as High Risk.

Our view is that the fund suits investors who want broad participation in the Nifty Next 50 universe and can handle sharp short-term swings. The return pattern has been uneven in the near term, but the 3-year number shows stronger compounding than the benchmark, while the portfolio structure suggests a fairly active set of large positions within a 50-stock framework.

Quick facts

Particular	Details
NAV	₹16.6613 as of 16 Sep 2026
AUM	₹2,708 Cr
Expense Ratio	0.3%
Launch Date	03 Nov 2021
Min SIP	₹100
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Index Funds
Exit Load	No exit load
Fund Managers	Arun Agarwal, Nandita Menezes

The fund is managed by Arun Agarwal and Nandita Menezes.

Source data date: as of 16 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-5.5%	-4.41%
3M	-2.34%	-3.6%
1Y	2.95%	-7.76%
3Y	15.44%	5.74%
5Y	Data not available	Data not available

The recent picture is mixed. Over one month, the fund fell more than the benchmark, which points to short-term sensitivity in the underlying basket. Over three months, the fund did better than the benchmark even though both were weak, so the latest trend is not one-sided.

The more important point is the 1-year and 3-year gap. The fund has stayed positive over 1 year while the benchmark is negative, and the 3-year result is comfortably ahead of the benchmark. That tells us the index exposure has delivered better compounding over a fuller cycle than the benchmark figure shown here.

The longer pattern also shows a rise followed by pullbacks, which is typical of a portfolio tied to a narrower set of growth-oriented names. The fund has not moved in a straight line, but the 3-year outcome suggests that patient holding periods have mattered much more than short stretches. Because the 5-year figure is not available, we would place more weight on the 1-year and 3-year behaviour when reading the scheme today.

For investors, the key trade-off is clear: short-term volatility has been real, but the medium-term return path has been stronger than the benchmark. That combination can suit investors who can stay invested through weaker phases rather than reacting to every drawdown.

Source data date: as of 16 Sep 2026

Should you BUY or HOLD HDFC NIFTY Next 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 HDFC NIFTY Next 50 Index? Thinking of investing now?

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Peer comparison

Fund	1Y return	3Y return	5Y return
HDFC NIFTY Next 50 Index Fund Direct Growth Plan	2.95%	15.44%	Data not available
ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan	29.31%	30.01%	Data not available
Tata Nifty Capital Markets Index Fund Direct Growth Plan	21.45%	Data not available	Data not available
Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan	21.13%	Data not available	Data not available
Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan	20.68%	Data not available	Data not available
ICICI Pru Nifty Pharma Index Fund Direct Growth Plan	17.57%	18.84%	Data not available

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

The fund’s 1-year return is much lower than the stronger peer figures shown here, while its 3-year return is above some peers with available 3-year numbers. That means the short-term comparison looks weaker, but the medium-term comparison is more balanced.

Among the peers with 3-year data, one fund is clearly ahead on the 1-year and 3-year view, while another also stays ahead on the 1-year horizon. Against that backdrop, this fund’s recent return trail is modest, but its 3-year outcome is still constructive relative to the available peer set.

So the peer story is split. On short horizons, the fund trails the strongest peer returns, but on the 3-year view it does not look out of place. That makes the longer-term comparison more relevant than the latest 1-year number alone.

Source data date: as of 16 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Divis Laboratories Ltd.	Healthcare	4.74%
TVS Motor Company Ltd.	Automobile & Ancillaries	4.02%
Tata Motors Limited	Domestic Equities	3.87%
Hindustan Aeronautics Limited	Capital Goods	3.59%
Adani Power (Mundra) Limited	Power	3.24%
Cholamandalam Investment & Finance Co. Ltd.	Finance	3.16%
Samvardhana Motherson International Ltd.	Automobile & Ancillaries	2.97%
Torrent Pharmaceuticals Ltd.	Healthcare	2.93%
Cummins India Ltd.	Automobile & Ancillaries	2.72%
Bharat Petroleum Corporation Ltd.	Crude Oil	2.58%

The largest holding, Divis Laboratories Ltd., carries a 4.74% weight, so no single position dominates the fund in isolation. Even so, the top ten holdings together account for approximately 33.82% of the portfolio, which means the upper end of the book can still matter meaningfully.

The weights step down gradually from the first to the tenth holding, moving from the mid-4% range to the high-2% range. That pattern suggests the portfolio may be balanced across several names rather than concentrated in one or two outsized bets, although the largest positions could still have greater influence on returns than the rest of the basket.

Because the scheme has 50 disclosed holdings, there is a long tail beyond the top ten. That wider spread may soften the impact of any one stock, but the visible concentration at the top means investors should still expect the fund’s performance to be shaped by a relatively small cluster of holdings.

To see all holdings, visit the HDFC NIFTY Next 50 Index Fund Direct Growth Plan page

Source data date: as of 16 Sep 2026

Who should invest

This fund is better suited to investors who can accept High Risk and stay invested through short-term swings. The 1-year return has been modest, while the 3-year return is stronger and clearly more constructive than the benchmark over the same horizon.

That mix points to an investment horizon of at least a few years rather than a short trading-style holding period. It may appeal to investors who want exposure to the Next 50 segment and are comfortable with a portfolio that can move sharply in the near term before the longer-term pattern becomes visible.

The main trade-off is simple: the scheme offers a rules-based way to access a broader set of next-line companies, but the path can be uneven. Investors need to accept that the fund may lag in quieter stretches even when the longer run is healthier.

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 16 Sep 2026

Frequently asked questions

What is the current NAV of HDFC NIFTY Next 50 Index Fund Direct Growth Plan?

The current NAV is ₹16.6613 as of 16 September 2026.

How has the fund performed over 1 year, 3 years and 5 years?

Its 1-year return is 2.95%, its 3-year return is 15.44%, and its 5-year return is Data not available.

How does the fund compare with its benchmark?

It has outperformed the benchmark on the 1-year and 3-year views shown here. The benchmark return is -7.76% for 1 year and 5.74% for 3 years, while the fund is positive over both periods.

How does it compare with the peer funds shown?

Its 1-year return is below several peer figures shown here, but its 3-year return is competitive among peers with available 3-year data. The shorter-term picture looks weaker than the longer-term one.

Does the fund have a minimum SIP amount?

Yes. The minimum SIP amount is ₹100.

Who manages the fund and what is the exit load?

The fund is managed by Arun Agarwal and Nandita Menezes. It has no exit load.

Bottom line

This fund’s recent return pattern is uneven, but the 3-year result is stronger than the benchmark and more useful than the weak 1-month and 1-year stretches on their own. Against the peer set shown here, the short-term comparison is modest, while the longer-term comparison looks more balanced. The scheme carries High Risk and its top holdings are meaningfully weighted, even though the portfolio is spread across 50 disclosed names. It may suit investors who want Next 50 exposure and can remain patient through volatility.

Published on 17 September 2026 at 12:29 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.