In multilevel converters (MCs), system components such as capacitors and semiconductor switches are very susceptible to damage. Furthermore, utilizing voltage sensors to balance capacitor voltages increases the system's cost and complexity while decreasing reliability. This paper presents methods for voltage balancing of capacitors, capacitance monitoring and open-circuit fault detection in nested neutral point-clamped (NNPC) converter with a reduced number of voltage and current sensors. In the proposed method, converter capacitors' voltage and current sensors are eliminated, and only the output sensors are employed to control the converter. In order to balance the voltage of capacitors, their voltages are estimated in three cases without using individual sensors. Comparing the capacitors' measured and estimated voltage change ratios is used to assess their health in the monitoring method. Thus, the capacitors' status can be checked by considering the system's health indicator during each period. Furthermore, the open-circuit fault detection method can identify defective switches within one processing cycle by comparing the converter's measured and standard output voltages in all switching states. The proposed methods have been evaluated in an experimental study of the system, and the results confirmed the effectiveness of the methods based on the new system configuration.© 2017 Elsevier Inc. All rights reserved.