{"id":11540,"date":"2026-05-13T07:59:48","date_gmt":"2026-05-13T07:59:48","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?p=11540"},"modified":"2026-05-06T11:51:07","modified_gmt":"2026-05-06T11:51:07","slug":"best-index-funds-india-nifty-50-next-50","status":"publish","type":"post","link":"https:\/\/lemonn.co.in\/blog\/finance\/best-index-funds-india-nifty-50-next-50\/","title":{"rendered":"Best Index Funds in India 2026: Nifty 50, Nifty Next 50, Nifty Midcap 150, and More"},"content":{"rendered":"<figure class=\"wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"890\" height=\"400\" src=\"https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/05\/ChatGPT-Image-May-6-2026-01_17_26-PM.png\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Best Index Funds in India 2026: Nifty 50, Nifty Next 50, Nifty Midcap 150, and More\" style=\"object-fit:cover;\" srcset=\"https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/05\/ChatGPT-Image-May-6-2026-01_17_26-PM.png 890w, https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/05\/ChatGPT-Image-May-6-2026-01_17_26-PM-300x135.png 300w, https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/05\/ChatGPT-Image-May-6-2026-01_17_26-PM-768x345.png 768w, https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/05\/ChatGPT-Image-May-6-2026-01_17_26-PM-150x67.png 150w\" sizes=\"auto, (max-width: 890px) 100vw, 890px\" \/><\/figure>\n\n\n<h2 id='why-index-funds-are-the-default-for-most-investors-in-2026'  id=\"boomdevs_1\" class=\"wp-block-heading\"><strong>Why Index Funds Are the Default for Most Investors in 2026<\/strong><\/h2>\n\n\n\n<p>SEBI&#8217;s data shows that 80%+ of actively managed large-cap funds underperformed their benchmark after costs over 10 years. Index funds, by eliminating fund manager risk and minimising costs, have become the rational choice for most long-term investors. In 2026, the range of Indian index funds covers the entire equity spectrum.<\/p>\n\n\n\n<h2 id='nifty-50-funds-core-portfolio'  id=\"boomdevs_2\" class=\"wp-block-heading\"><strong>Nifty 50 Funds: Core Portfolio<\/strong><\/h2>\n\n\n\n<p>The Nifty 50 represents approximately 65% of India&#8217;s total market capitalisation. It is the natural anchor for any Indian equity portfolio. All major AMCs offer Nifty 50 index funds with TERs between 0.10% and 0.20%.<\/p>\n\n\n\n<h2 id='nifty-next-50-funds-the-aspiring-large-caps'  id=\"boomdevs_3\" class=\"wp-block-heading\"><strong>Nifty Next 50 Funds: The Aspiring Large-Caps<\/strong><\/h2>\n\n\n\n<p>The Nifty Next 50 index tracks the 51st to 100th largest companies by market cap. These are often companies about to enter the Nifty 50, making this index a source of alpha over time. Historically, Nifty Next 50 has outperformed Nifty 50 with higher volatility.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><strong>Index<\/strong><\/th><th><strong>Market Cap Range<\/strong><\/th><th><strong>Number of Stocks<\/strong><\/th><th><strong>5Y CAGR (approx)<\/strong><\/th><\/tr><\/thead><tbody><tr><td>Nifty 50<\/td><td>Top 50 companies<\/td><td>50<\/td><td>~14%<\/td><\/tr><tr><td>Nifty Next 50<\/td><td>51st\u2013100th companies<\/td><td>50<\/td><td>~16%<\/td><\/tr><tr><td>Nifty Midcap 150<\/td><td>101st\u2013250th companies<\/td><td>150<\/td><td>~18%<\/td><\/tr><tr><td>Nifty Smallcap 250<\/td><td>251st\u2013500th companies<\/td><td>250<\/td><td>~20% (higher risk)<\/td><\/tr><tr><td>Nifty 500<\/td><td>Top 500 companies<\/td><td>500<\/td><td>~15%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id='recommended-index-fund-portfolio-allocation'  id=\"boomdevs_4\" class=\"wp-block-heading\"><strong>Recommended Index Fund Portfolio Allocation<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><strong>Investor Type<\/strong><\/th><th><strong>Nifty 50<\/strong><\/th><th><strong>Nifty Next 50<\/strong><\/th><th><strong>Midcap 150<\/strong><\/th><th><strong>International<\/strong><\/th><\/tr><\/thead><tbody><tr><td>Conservative<\/td><td>80%<\/td><td>20%<\/td><td>0%<\/td><td>0%<\/td><\/tr><tr><td>Moderate<\/td><td>60%<\/td><td>20%<\/td><td>15%<\/td><td>5%<\/td><\/tr><tr><td>Aggressive<\/td><td>40%<\/td><td>20%<\/td><td>30%<\/td><td>10%<\/td><\/tr><tr><td>All-India<\/td><td>50%<\/td><td>20%<\/td><td>20%<\/td><td>10%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id='nifty-midcap-150-index-funds'  id=\"boomdevs_5\" class=\"wp-block-heading\"><strong>Nifty Midcap 150 Index Funds<\/strong><\/h2>\n\n\n\n<p>Midcap index funds have gained significant popularity as the category consistently outperformed large-caps over 5\u20137 year periods. Key funds include Motilal Oswal Nifty Midcap 150 Index Fund and Nippon India Nifty Midcap 150 Index Fund, both with TERs around 0.30%\u20130.40%.<\/p>\n\n\n\n<h2 id='factor-index-funds-smart-beta-investing'  id=\"boomdevs_6\" class=\"wp-block-heading\"><strong>Factor Index Funds: Smart Beta Investing<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><strong>Factor Index<\/strong><\/th><th><strong>Underlying Principle<\/strong><\/th><th><strong>Suitable For<\/strong><\/th><\/tr><\/thead><tbody><tr><td>Nifty 50 Value 20<\/td><td>Low P\/E, P\/B stocks in Nifty 50<\/td><td>Value investors<\/td><\/tr><tr><td>Nifty Alpha 50<\/td><td>High price momentum stocks<\/td><td>Momentum investors<\/td><\/tr><tr><td>Nifty Quality 30<\/td><td>High ROE, low debt companies<\/td><td>Quality-focused investors<\/td><\/tr><tr><td>Nifty Low Vol 30<\/td><td>Lowest volatility large-caps<\/td><td>Defensive investors<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id='how-to-build-an-index-fund-portfolio-via-lemonn'  id=\"boomdevs_7\" class=\"wp-block-heading\"><strong>How to Build an Index Fund Portfolio via Lemonn<\/strong><\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Open Lemonn account and navigate to Mutual Funds section<\/li>\n\n\n\n<li>Search for your chosen index fund by name or AMC<\/li>\n\n\n\n<li>Select direct plan (not regular) saves 0.5%\u20131% in commission annually<\/li>\n\n\n\n<li>Set up SIP with desired monthly amount and date<\/li>\n\n\n\n<li>Review and confirm: Lemonn handles mandate registration<\/li>\n\n\n\n<li>Review portfolio quarterly: rebalance annually if allocations drift &gt; 5%<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Why Index Funds Are the Default for Most Investors in 2026 SEBI&#8217;s data shows that 80%+ of actively managed large-cap funds underperformed their benchmark after costs over 10 years. Index funds, by eliminating fund manager risk and minimising costs, have become the rational choice for most long-term investors. In 2026, the range of Indian index [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":11541,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-11540","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/11540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/comments?post=11540"}],"version-history":[{"count":2,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/11540\/revisions"}],"predecessor-version":[{"id":11563,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/11540\/revisions\/11563"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media\/11541"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=11540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/categories?post=11540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/tags?post=11540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}