NIFTY Next 50: A Smart Bet for Young Investors

The latest story on ‘Nifty Next 50’ provided great perspective. I'm 25 years old and have a healthy amount of capital available for investment. Could you suggest how much portfolio exposure would be appropriate for allocating to the Nifty Next 50 at this stage? - Vaishnavi Deshmukh [EasyDNNnews:PaidContentStart]

Editor Responds : The Nifty Next 50 is a compelling longterm investment avenue, especially for young investors like you with a higher risk tolerance and a long investment horizon. At 25, you’re well-positioned to benefit from the growth potential of this index, which comprises emerging Large-Cap companies that could become future Nifty 50 constituents. Given your healthy capital base, allocating around 30 per cent of your equity portfolio to the Nifty Next 50 would be reasonable. It adds diversification and offers exposure to high-growth sectors and companies. However, be prepared for slightly higher volatility compared to the Nifty 50. To manage risk, balance this with core holdings in large-cap and flexi-cap funds. Invest through low-cost index funds or ETFs, and stay invested with a longterm view to benefit from compounding and potential re-rating of these stocks

[EasyDNNnews:PaidContentEnd] [EasyDNNnews:UnPaidContentStart]

[EasyDNNnews:UnPaidContentEnd]