Index funds are mutual fund schemes that replicate the index weightage exactly. Investing in index mutual funds is one of the best ways to invest in the Nifty 50. That will also require considerable investment since you cannot buy shares in fractions and due to this exact weight of the stocks can’t be maintained. That can be a hectic, time-consuming and complicated process. That means replicating the weights daily and rebalancing your portfolio. One way to invest in the Nifty 50 index is to buy stocks in the exact proportion of the index. The Nifty 50 comprises 50 different companies from 13 sectors in the country. Buy stocks in the same proportion as the index Investing in the Nifty 50 index requires other methods. However, unlike equities, you cannot purchase an index directly. That is enough reason to want to invest in this index. For instance, in the 25 years since its launch, the Nifty 50 has grown almost 14 times (1,107 points in 1996 to 15K in Feb, 2021). That allows you to generate and build a hefty corpus in the long run. When you invest in the Nifty 50, you invest in the top 50 companies in India. It’s safe to say that the country’s largest and most reputed stocks cut to be part of this index. It comprises the top 50 large-cap companies listed on the National Stock Exchange. The Nifty 50 is one of two benchmark indices in India. It’s one of the most important metrics to follow in the stock markets. Even if you watch the financial news often, you would have often seen this term flash across your screen. If you are an active stock market investor, you would have come across ‘Nifty 50’.
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