Nippon India Index Fund Nifty 50 Plan: Low-cost investment option in market leaders

Current Market Scenario

Equity markets have recovered from March 2026 lows after the ceasefire between US and Iran. The market barometer, Nifty 50 has regained the psychological level. While stalemate continues over control of the Strait of Hormuz and high crude oil prices, market is experiencing a range-bound phase. With reports of progress in peace talks coming from White House, global equities may rise if the news flow is positive.

The case for Indian equities

India became the 4^th largest economy in the world in 2025 (source: Press Information Bureau, Government of India, June 2025). The Government expects India to be the 3^rd largest economy by 2030 with a GDP of $7.3 trillion (source: Press Information Bureau, Government of India, August 2025). Since 2000, India has attracted more than $1 Trillion of Foreign Direct Investments (source: Press Information Bureau, Government of India, August 2025). With strong macroeconomic fundamentals e.g. robust GDP growth, narrowing fiscal deficit etc, improving corporate balance sheets, growth in consumption demand post GST cuts and reform oriented policy framework, the long term outlook of Indian equities is positive.

Why invest in Nifty 50?

• Nifty 50 represents the pulse of Indian equity market.


• Nifty 50 contributes 54% to the market capitalization of Nifty 500 (top 500 companies by market capitalization), as on 30^th March 2026.


• Nifty 50 companies are industry leaders.


• Nifty 50 companies are top contributors in terms of employment generation.


• FIIs prefer Nifty 50 companies for their governance, liquidity, and growth and may reinvest in these companies as markets recover.


• Rs 10,000 invested in Nifty 50 TRI has multiplied 30X in the last 25 years. Nifty 50 TRI has given 14.42% CAGR returns in the last 20 years.
  
  

  

  Source: NSE, Advisorkhoj, as on 30^th April 2026



• Post 2008 Global Financial Crisis, Nifty 50 has outperformed other asset classes like Gold etc. over long investment tenures. The chart below shows the 3 year rolling returns (rolled daily) of Nifty 50 TRI versus Domestic Price of Gold (MCX Spot Prices) and Nifty 10-year Benchmark G-Sec Index since 1^st April 2009.
  
  

  

  Source: NSE, Advisorkhoj, as on 30^th April 2026

  
  

  You can see that Nifty had higher median rolling returns and lower minimum rolling returns versus gold across different investment tenures.

  
  

  

  Source: NSE, MCX spot prices, Advisorkhoj, as on 30^th April 2026.

  
  

  Nifty had given higher instances of 12%+ CAGR rolling returns than gold over different investment tenures, since the global financial crisis of 2008.

  
  

  

  Source: NSE, MCX spot prices, Advisorkhoj, as on 30^th April 2026



• The chart below shows the growth of Rs 10,000 monthly SIP in Nifty 50 TRI over the last 25 years. With a cumulative investment of Rs 20 lakhs you could have accumulated a corpus of Rs 2.29 crores. The chart shows strong wealth creation track record of Nifty.
  
  

  

  Source: NSE, Advisorkhoj, as on 30^th April 2026

Why is this a good time to invest in Nifty 50?

• Valuations are attractive after the recent correction. Currently Nifty Next 50 PE and PB ratios are both below their historical average.
  
  

  

  Source: NSE, Advisorkhoj, as on 30^th April 2026

Relatively smaller drawdowns compared to the broader market

The table below shows the major market drawdowns in the last 20 years. You can see Nifty experienced smaller drawdowns compared to the broader market indices.

Source: Bajaj Finserv MF, as on 31^st March 2025

Why invest in Nippon India Index Fund Nifty 50 Plan?

• One of the lowest expense ratios among index funds.


• One of the lowest tracking errors among index funds.


• No fund manager bias and minimal intervention.


• Focus on delivering a disciplined passive investment strategy, aligning with long-term wealth creation goals.


• You do not need demat or trading accounts to invest in this fund.


• You can invest from your regular saving through Systematic Investment Plan (SIP).

Who should invest in Nippon India Index Fund Nifty 50 Plan?

• Investors seeking capital appreciation over long investment tenures.


• Investors who want to have large cap stock exposure.


• Investors having a long-term investment horizon (minimum 5 years).


• Investors with high-risk appetite.


• Investors can invest in lump sum or SIP depending on their investment needs.


• Investors do not need demat accounts to invest in this fund.

Investors should consult their financial advisors or mutual fund distributors if Nippon India Index Fund Nifty 50 Plan is suitable for their investment needs.