Tata Mutual Fund has launched a new large-cap index fund — Tata Nifty Next 50 Index Fund Direct – Growth, open for subscription from 12th September to 26th September 2025. With a very high-risk profile, this NFO seeks to passively invest in equity and equity-related securities replicating the composition of the Nifty Next 50 Index, offering investors a straightforward approach to large-cap diversification.
Key NFO Details
| Detail | Information |
| Fund Name | Tata Nifty Next 50 Index Fund Direct – Growth |
| NFO Period | 12 Sep 2025 to 26 Sep 2025 |
| Allotment Date | 01 Oct 2025 |
| Category | Equity – Large Cap Index |
| Risk Level | Very High |
| Fund Type | Open-ended |
| Benchmark | NIFTY Next 50 TRI |
| Minimum Investment | ₹5,000 (lumpsum), ₹500 (SIP) |
| Exit Load | Exit load of 0.25%, if redeemed within 15 days |
| Short-term capital gains (STCG) | Returns are taxed at 20% if you redeem before 1 year |
| Long-term capital gains (LTCG) | After 1 year, returns above ₹1.25 lakh in a financial year are taxed at 12.5% |
Investment Objective
The scheme aims to:
• Passively replicate the performance of the Nifty Next 50 Index by investing in its constituent equity and equity-related securities.
• Provide investors with diversified large-cap equity exposure while minimising stock selection risks through an index-based approach.
This strategy is suitable for investors seeking very high-risk, long-term equity growth via a low-maintenance, passive investment route.
How Does This Compare with the Category?
While this is a new fund with no performance history, the category averages and trailing returns are:
| Time Period | Category Avg. Returns (CAGR) |
| 1 Year | 7.03% |
| 3 Years | 12.7% |
| 5 Years | 13.65% |
| 7 Years | 14.59% |
| 10 Years | 13.76% |
| 15 Years | 12.79% |
| Since Inception | 11.96% |
These figures provide investors with a reference for evaluating potential performance once the fund starts operations.
Should You Invest in This NFO?
Investing in this NFO makes sense if:
• You want very high-risk exposure through a passively managed large-cap index fund.
• You are looking to invest in a diversified portfolio of 50 high-potential stocks without active stock selection.
• You prefer the simplicity of an index-tracking fund and believe in the long-term performance of the Nifty Next 50 Index.
However, remember that NFOs have no past performance data, so they are better suited for informed or risk-tolerant investors.
Also Read:
- HDFC Diversified Equity All Cap Active FoF NFO: A Very High-Risk Equity FoF for 2025
- SBI Dynamic Asset Allocation Active FOF NFO: A High-Risk Fund of Funds Approach for 2025
- Axis Nifty500 Quality 50 Index Fund NFO: A Quality-Driven Index Strategy for 2025
- Edelweiss Multi Asset Omni Fund of Fund NFO: A Diversified Approach to Investing for 2025
- Bandhan BSE India Sector Leaders Index Fund NFO: A High-Risk Index Investment for 2025
About Tata Mutual Fund
Tata Mutual Fund manages ₹1,96,797 Cr AUM (as of June 30, 2025) and offers a variety of equity mutual funds, such as:
| Fund Name | AUM | 1Y Returns | 5Y Returns |
| Tata Small Cap Fund | 11,416 Cr | -5.64% | 31.15% |
| Tata Infrastructure Fund | 2,138 Cr | -13.09% | 29.36% |
| Tata Mid Cap Fund | 4,946 Cr | -3.15% | 25.63% |
| Tata Resources & Energy Fund | 1,156 Cr | 0.56% | 23.91% |
| Tata Banking and Financial Services Fund | 2,819 Cr | 7.97% | 22.28% |
| Tata Value Fund | 8,348 Cr | -7.86% | 22.27% |
The fund house’s strong track record across equity categories adds credibility to this new offering.
Final Thoughts
For investors looking to gain diversified exposure to the Nifty Next 50 Index in 2025, the Tata Nifty Next 50 Index Fund NFO may be an attractive choice — especially for very high-risk investors seeking long-term capital growth through a passive index approach.
Before investing, review the scheme document carefully and consider your financial goals, risk appetite, and investment horizon.
