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

HSBC Nifty Next 50 Index Fund Direct Growth Plan had a NAV of ₹30.8603 as of 15 September 2026 and an AUM of ₹182 Cr. Its 1-year, 3-year and 5-year returns are 2.69%, 15.33% and 10.48% respectively, and the scheme sits in the High Risk bucket.

Our view is that this is a clear index-style satellite option for investors who can tolerate sharp swings and want exposure beyond the most familiar large-cap names. The recent numbers are softer than the longer-term profile, but the multi-year track record still shows meaningful compounding in a volatile format.

Quick facts

Particular	Details
NAV	₹30.8603 as of 15 Sep 2026
AUM	₹182 Cr
Expense Ratio	0.34%
Launch Date	15 Apr 2020
Min SIP	₹500
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Index Funds
Exit Load	Nil upto 10% of units and 1% for remaining units on or before 1M, Nil after 1M
Fund Managers	Praveen Ayathan, Rajeesh Nair

The fund is managed by Praveen Ayathan and Rajeesh Nair.

Source data date: as of 15 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-5.62%	-4.81%
3M	-1.96%	-3.63%
1Y	2.69%	-8.27%
3Y	15.33%	5.59%
5Y	10.48%	5.58%

Recent performance has been choppy. The fund was weaker over 1 month and 3 months, which tells us the portfolio has not been immune to short-term pressure. Even so, the 3-month figure is less negative than the benchmark, so the fund has handled the latest stretch better than the benchmark even while remaining under pressure.

The bigger picture is stronger. The 1-year return is positive while the benchmark is negative, and the 3-year and 5-year returns both stay well above the benchmark figures. That tells us the scheme has created clearer value over longer holding periods than the benchmark it is compared against. For an index fund, that matters because investors usually use it for steadier benchmark-style participation rather than short bursts of outperformance.

The return pattern also looks uneven rather than smooth. The fund has delivered a meaningful multi-year compounding path, but the recent softness shows that the ride can still be unstable. Our reading is that the fund suits investors who can stay invested through periods when short-term numbers slip below long-term trends.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD HSBC 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 HSBC Nifty Next 50 Index? Thinking of investing now?

Get your portfolio analysed for FREE by SEBI-registered Investment Adviser (RIA) through Univest MF Premium

Peer comparison

Fund	1Y return	3Y return	5Y return
HSBC Nifty Next 50 Index Fund Direct Growth Plan	2.69%	15.33%	10.48%
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 1-year return is far below the strongest peer figures in this set, while its 3-year and 5-year numbers are more solid and clearly closer to the better long-term outcomes among the comparison group. That mix suggests the recent stretch has been softer than what some peers have delivered, but the longer record remains respectable for an index fund with a volatile market segment. The short-term picture and the multi-year picture are therefore telling different stories.

Source data date: as of 15 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Divi''S Laboratories Limited	Healthcare	4.74%
TVS Motor Company Limited	Automobile & Ancillaries	4.01%
Tata Motors Limited	Domestic Equities	3.87%
Hindustan Aeronautics Limited	Capital Goods	3.59%
Adani Power Limited	Power	3.23%
Cholamandalam Invest & Finance Co Ltd	Finance	3.16%
Samvardhana Motherson International Ltd	Automobile & Ancillaries	2.97%
Torrent Pharmaceuticals Limited	Healthcare	2.93%
Cummins India Limited	Automobile & Ancillaries	2.71%
Bharat Petroleum Corporation Limited	Crude Oil	2.59%

The top 10 holdings account for approximately 33.8% of the portfolio.

To see all holdings, visit the HSBC Nifty Next 50 Index Fund Direct Growth Plan page

The largest holding, Divi''S Laboratories Limited, carries a 4.74% weight, which is sizable but not dominant. The fall from the first holding to the tenth is gradual rather than abrupt, moving from 4.74% to 2.59%, so the portfolio does not rely on one or two positions alone. That makes the displayed basket look moderately spread out within the disclosed set.

At the same time, the top 10 holdings together make up about 33.8% of the portfolio, which means a meaningful part of the scheme still sits in the longer tail of the remaining disclosed holdings. With 50 holdings in total, the portfolio is likely to have greater influence from a broad set of names than a simple top-heavy structure might suggest. For investors, that can mean more diversified stock-level exposure, even though the fund still remains sensitive to the fortunes of its larger positions.

Source data date: as of 15 Sep 2026

Who should invest

This fund fits investors who can handle High Risk exposure and accept that returns may swing sharply over shorter windows. The 1-year result is modest, but the 3-year and 5-year record is stronger and sits well above the benchmark, so the fund looks better suited to a longer holding period than to a short tactical allocation.

The main trade-off is simple: you get index-style access to the Nifty Next 50 universe, but you also take on a portfolio that can move unevenly in the near term. Investors who want broader market participation and can tolerate volatility may find the return pattern and portfolio shape consistent with a long-horizon equity allocation.

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 applies as nil on up to 10% of units and 1% for the remaining units if sold within 1 month. No exit load applies after the holding period.

Source data date: as of 15 Sep 2026

Frequently asked questions

What is the current NAV of HSBC Nifty Next 50 Index Fund Direct Growth Plan?
The current NAV is ₹30.8603 as of 15 September 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year, 3-year and 5-year returns are 2.69%, 15.33% and 10.48% respectively.

How does the fund compare with its benchmark?
It has outperformed the benchmark over 1 year, 3 years and 5 years, while the benchmark has been negative over the 1-year period shown.

How does it compare with the peer funds listed here?
Its 1-year return is well below several of the peer figures listed, but its 3-year and 5-year numbers are more competitive than the shorter-term outcomes of peers that do not yet have longer history.

What is the fund manager set?
The fund is managed by Praveen Ayathan and Rajeesh Nair.

What are the exit load rules?
Exit load is nil on up to 10% of units and 1% for the remaining units if sold within 1 month. No exit load applies after the holding period.

Bottom line

HSBC Nifty Next 50 Index Fund Direct Growth Plan has a softer short-term record than its multi-year trend, but the 3-year and 5-year figures remain ahead of the benchmark and show that the scheme has compounded better over longer periods. In the peer set shown here, the 1-year figure is comparatively modest, while the longer-term numbers are more in line with stronger outcomes. The portfolio is not concentrated in a single name, and the top holdings only explain part of the scheme.

Published on 16 September 2026 at 3:05 PM IST

Explore mutual funds with Univest

Review mutual fund data, compare performance and explore fund insights on Univest.

Explore Univest

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.