Today @jashkriplani writes about the train-wreck that is the Nifty Next 50 after the #HindenbergResearch report on #Adani. The Nifty Next 50 collapsed last month. Even 5 year returns are just 5.4% CAGR. As much as 14% of the Nifty Next 50 is in the Adani Group 
Nifty Next 50 is 'waiting room' index. It consists of the 50 largest companies just below the top 50. Logically, investing in it should be more rewarding than investing in the main Nifty index. But that's not how returns have played out.
What failed? If the #hindenberg allegations are true, free float in Adani stocks is an illusion. Then they should not have made it to the Next 50 in the first place. Indexing did not fail, the Indexer did. MSCI recently revised its own free float weighting. What is NSE doing?
If indices can fail, buy an index and forget is not enough. Blind trust in the market is dangerous. You have to check the quality of the index and the exposure it has to individual sectors or corporate groups. If this is getting out of control, stay away. livemint.com/money/personal…
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