Why There’s No ETF or Mutual Fund Based on BSE Sensex Next 50?
By WealthCare Vest – Caring for your wealth, strengthening your investment
At WealthCare Vest, our goal is to make financial knowledge simple and accessible for everyone. Today, let’s address a question that many investors wonder about:
Why is there no ETF or Mutual Fund based on the BSE Sensex Next 50 Index?
The Simple Answer:
BSE (Bombay Stock Exchange) has the Sensex, which includes the top 30 stocks based on market capitalization. However, BSE has not yet launched a “Sensex Next 50” index like NSE (National Stock Exchange) has done with its Nifty Next 50.
This means that BSE doesn’t currently offer an official index that covers the next 50 companies beyond the Sensex 30 – and hence, fund houses and ETF providers don’t have a benchmark to build products on.
But Wait, Isn’t There a Similar Index?
Yes! NSE already provides a well-recognized Nifty Next 50 index, which includes the 50 companies just below the Nifty 50. These companies are often strong performers and potential future large-caps.
Since the constituents of Sensex and Nifty often overlap, and Nifty Next 50 already fills the gap, there hasn’t been much demand or reason to create a similar “Sensex Next 50.”
So, from a fund manager’s or investor’s point of view:
Why create a new product when a similar one already exists and is widely accepted?
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About WealthCare Vest:
WealthCare Vest by Raghav Goel is a trusted platform helping Indian investors make smarter investment decisions. Whether it’s mutual funds, financial planning, or goal-based investing, we simplify finance for you. With a deep understanding of products and a caring approach, our motto is clear:
Caring for your wealth, strengthening your investment.
Stay tuned for more easy-to-understand financial blogs and tips!
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Disclaimer:
This blog is for educational purposes only. The content shared here is not to be considered as investment advice. Mutual Fund investments are subject to market risks. Please consult with a certified financial advisor before making any investment decisions.
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