Sometimes it can be beneficial to invest in the second best rather than in the best. Talking of equity markets, while Nifty is composed of 50 largest companies by market capitalization, its junior sibling the Nifty Next 50 (also known as Nifty Junior ) is composed of the next largest 50 companies. Of course, we all know that one should buy at low and sell at high. Nifty Next 50 index does exactly that- it buys at low and sells at high: when a company falls from the top Nifty 50 index it enters the Nifty Next 50 index (buy low) whereas when a company in the Nifty Next 50 outperforms it moves out into Nifty 50 (sell high). However, the top most index (Nifty 50) buys high and sells low (when a company under-performs it exits the Nifty 50 and makes way for a company from the Nifty Next 50/Nifty Junior index that outperformed. Mutual funds tracking such indices are called passive funds that just replicate the index. However it's not entirely passive investing as the indices are res