
In 2025, investors tracking India’s headline indices saw two very different stories unfold. The Nifty 50 rewarded investors looking for stability and near-term gains, while the Nifty Next 50 reminded the market why patience matters when investing for the long run. Using only factsheet data, here’s a simple, investor-friendly breakdown of which index truly delivered, and in what way.
As per the factsheets dated 31 December 2025, on the NSE website, Nifty 50 gave higher returns in the short term as compared to Nifty Next 50.
| Index | YTD Return (%) | 1-Year Return (%) | 5-Year Return (%) |
| Nifty 50 – TRI | 11.88 | 11.88 | 14.68 |
| Nifty Next 50 – TRI | 2.90 | 2.90 | 17.30 |
Dividend income was almost comparable across both indices. While Nifty 50 had a dividend yield of 3.55%, Nifty Next 50 exhibited a yield of 3.61%. Thus, income-focused investors did not see a major advantage in choosing one over the other.
Beta measures how sensitive an index is to overall market movements. The factsheet numbers suggest that while Nifty 50 moved broadly in line with the market, Nifty Next 50 was more volatile. Put simply, it tended to rise more sharply during bullish phases but also saw deeper corrections during market downturns.
The figures on standard deviation suggest that since Nifty 50 offered relatively smoother returns, it was easier to hold during uncertain phases. However, the Nifty Next 50 showed larger swings, which tested investor patience but also supported higher long-term returns.
| Index | Beta | Standard Deviation |
| Nifty 50 | 1.00 | 13.95 |
| Nifty Next 50 | 1.17 | 17.37 |
The Nifty 50 had a P/E ratio of 22.75, indicating that most investors paid a premium for the Nifty 50’s established companies. On the other hand, the Nifty Next 50 was relatively cheaper as compared to Nifty 50, and had a P/E ratio of 20.18.
| Index | P/E Ratio |
| Nifty 50 | 22.75 |
| Nifty Next 50 | 20.18 |
Read more: NIFTY50 2015–2025 Recap: How Did the Benchmark Deliver Over 12% Annualised Returns?
In 2025, the Nifty 50 delivered stability, smoother returns, and stronger short-term performance. The Nifty Next 50, despite higher volatility, showed stronger long-term growth potential over extended investment horizons.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jan 13, 2026, 11:36 AM IST

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